ID Verification for Directors and PSC’s for Companies House.
Lots have been happening at Companies House over the last year or two, and not just increases in filing fees.
The Economic Crime and Corporate Transparency Act came into force in October 2023, but is being slowly phased in. One of the next parts is ID verification for Directors and people of significant control (PSC) for the company. Without the verification, you will not be able to file the confirmation statement each year or the annual accounts. If planning to start a company, you will not be able to do this until the planned directors have been verified.
All new company formations will have to have the ID verification done from 19th November 2025, and then all current directors & PSCs before the confirmation statement can be filed after 19th November. All current directors & PSCs have a 12-month period to get it done. It was Spring 2026, but it was changed in August 2026 to a 12-month transition.
Why was the act introduced?
Economic crime—such as fraud, money laundering, and false accounting—has been a concern for UK regulators. The Act aims to address these issues by introducing stricter reporting requirements, enhanced identity verification, and greater transparency in company ownership. For small businesses, this means increased scrutiny and the need for more robust compliance processes. More on that to come when that part of the act is implemented.
Who needs to verify
You’ll need to verify your identity if you are:
A Director
Planning to set up a limited company and be a director or PSC
The equivalent of a director – this includes members, general partners and managing officers
A person with significant control (PSC)
An Authorised Corporate Service Provider (ACSP) – also known as a Companies House authorised agent
Someone who files for a company, for example, a company secretary
In most cases, you’ll only need to verify your identity once. You must not verify again unless Companies House tell you to.
Options for Identity Verification
There are two ways this can be done:
1. Verification via an Authorised Corporate Service Provider (ASCP) ie me;
2. Self-Verify through GOV.UK One login – which is free and secure;
3. Through other software providers
Exploring each option:
Verification via an Accountant. Yes, I will be set up as an ASCP; otherwise, I cannot do any filings after the mandate from Autumn 2025. This is a cost to me of £55 and is deemed to be an operating cost. Then, if I am to do verification of clients, I have to:
Attend training courses to know how to spot a forgery in items such as passports, and keep this training up.
Buy equipment to help with the passport verification.
Travel to meet the clients and physically handle the passport, involving travel costs and time.
I don’t think this is cost-effective for clients and is just another government initiative draining our pockets.
Doing your own verification via the Government’s One Login.
Yes, it is another government sign-up we are all expected to do eventually. This log-in will take over the government gateway and everything else you do with government departments – I am not holding my breath. It is not envisaged to work with universal credit at the moment.
To do your own verification, you will need to :
Create your own Gov.UK One Login (https://www.sign-in.service.gov.uk/register). I have started to create screenshot examples of how you do this, but the screen will depend on if you are using a phone, tablet or computer.
Register as a director or PSC in order to identify yourself. For this, you will need a passport and a smartphone.
Wait a while and eventually you will get sent a reference number for yourself which you need to keep safe and let your accountant know what it is – unless of course you file your own confirmation statement & accounts at Companies House.
There is a way of verifying your identity if you don’t have photo ID or cannot do it online – https://www.gov.uk/guidance/verify-your-identity-for-companies-house
Doing your own verification via software options
If you don’t fancy yet another Government login (you will need it eventually), then you can go for ID- ID-verification software options. Companies House insist you can do an internet search and find companies that do this, but they are not putting out recommendations. This ID Verification is very different to the original anti-money laundering we do when taking on a client.
A lot of things I have searched for are geared to accountants and solicitors completing the checks on bulk, so it would be a case of finding firms that do it on a director-by-director basis. Obviously, this costs money. One I will look into is Cogency Global.
What if you don’t verify?
Companies House has not had much teeth in the past, but under the new act, they can bite as well as bark and issue financial penalties directly rather than just taking the director to court. The rules apply even if the company is a one-person company or dormant.
If you don’t verify your ID, then no documents can be filed at Companies House, and that can then lead to your company being struck off, and if the company is still active with funds in the bank, then the bank will be closed and funds returned to the crown. It can also result in fines and possible disqualification, and providing false/misleading information is a criminal offence.
Help needed?
Yes, we can help you through the whole process of getting your One Login at GOV.UK over a Zoom call, and you sharing your screen. You will be on your own with the actual ID verification as on your smartphone. Just book a paid call in my diary >>> https://www.performanceaccountancy.co.uk/booking/louise/30-client-consult
I have prepared a screen by screen guide which works for used on a PC and then an android phone.