Following regulatory changes that took effect on 25 February 2025, directors now have the option to verify their identity with Companies House. This voluntary process will transition to a mandatory requirement by late 2026, making it essential for all company directors to understand the implications.
Current voluntary verification period
During this transitional phase, new directors may choose to verify their identity through an authorised professional such as an accountant or solicitor. While compliance remains optional until late 2026, directors must continue providing identification details when submitting annual confirmation statements.
Regulatory objectives behind identity verification
These measures form part of broader government efforts to combat fraudulent directorships and enhance corporate governance standards. By implementing mandatory identity verification, regulators aim to eliminate illegitimate entities that operate using false credentials, thereby strengthening market integrity.
Professional verification services
Qualified accountants, solicitors and other authorised corporate service providers (ACSPs) are responsible for conducting director identity verification. These professionals must adhere to stringent protocols including document authentication, maintaining seven-year record retention and providing HMRC with comprehensive verification data.
Verification methods available
Directors can complete the verification process through two approved channels:
Digital verification: Utilising Identification Document Validation Technology (IDVT) for automated, high-accuracy processing
Manual verification: Submitting two official documents, including photographic identification. International directors must provide government-issued documentation
How we can help
Under the Economic Crime & Corporate Transparency Act 2023, failure to comply with identity verification requirements may result in regulatory penalties. Companies should proactively engage with qualified ACSPs to ensure seamless adherence to these evolving obligations.
Want to learn more? Get in touch today on 01942 816512 or email:
Chris Barlow, Tax Manager: [email protected]
