From autumn this year, company directors can expect more scrutiny and tighter controls as further measures from the Economic Crime and Corporate Transparency Act 2023 come into force to reform Companies House. Even more significant reforms are planned for April 2027.
To support the reforms, the Registrar has introduced four main objectives to guide its expanded role:
Objective 1: Enforcing filing obligations
To ensure that any person who is required to deliver a document to the registrar does so (and that the requirements for proper delivery are complied with).
Objective 2: Improving data accuracy
To ensure that information contained in the register is accurate and that the register contains everything it ought to contain. This reference to 'the register' includes any records kept by the registrar under any enactment.
Objective 3: Avoiding misleading records
To ensure that records kept by the registrar do not create a false or misleading impression to members of the public.
Objective 4: Tackling unlawful activity
To prevent companies and others from:
- carrying out unlawful activities, or
- facilitating the carrying out by others of unlawful activities
These objectives demonstrate a shift in the role of Companies House, giving it more authority to challenge and reject information, and take action where needed. The aim is to give Companies House the power to play a more significant role in disrupting economic crime and supporting economic growth by improving trust in the UK's corporate landscape. But it will also mean there'll be more compliance and oversight for legitimate businesses too.
While not formally described as a timeline, Companies House is working towards introducing the following changes by these key dates:
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Date:
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Companies House should be able to:
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From 8 April 2025
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- Allow individuals to voluntarily verify their identity
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By summer 2025
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- Allow access on request to certain trust information on the Register of Overseas Entities
- Receive and assess applications from individuals seeking to suppress their day of birth for documents registered before 10 March 2015, signature, business occupation, and residential address in most other instances
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By autumn 2025
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- Make identity verification a compulsory part of incorporation and new appointments for new directors and PSCs
- Begin the 12-month transition phase to require more than 7 million existing directors and PSCs to verify their identity – the identity verification will happen as part of the annual confirmation statement filing
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By spring 2026
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- Make identity verification of the presenters a compulsory part of filing any document
- Require third party agents filing on behalf of companies to be registered as an ACSP
- Reject documents delivered by disqualified directors as they will be prohibited from doing so, unless they are delivered by an ACSP for specified filings permitted by law
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By the end of 2026
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- Require all limited partnerships to submit more information, providing greater transparency for users of the register
- Complete the transition period for all individuals on the register requiring identity verification, and start compliance activity against those who have failed to verify their identity
- Facilitate greater cross-checking of information and data between Companies House and other public and private sector bodies
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Following accounts reform (Post April 2027)
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- Software-only filing made mandatory for all accounts
- Removing the option for small companies and micro-businesses to file abridged accounts
- Requiring all companies to fie profit and loss accounts and require small companies to also file their director's reports.
- Requiring a company claiming an audit exemption to provide an enhanced statement from their directors on the balance sheet, specifying the exemption being claimed and the confirming the company eligible for it and;
- Limit the number of items that a company can shorten its accounting reference period.
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Our View
While the intention behind these reforms is to improve transparency and reduce fraud, we recognise that the changes will feel like added pressure for small business owners. The new ID checks, filing requirements, and tighter rules will increase the amount of admin and scrutiny you face, often without any obvious benefit to how you actually run your business.
For many, these aren't just tick-box changes. They will mean more information being made public, less flexibility in filing, and the potential for honest mistakes to be flagged or rejected. Unless Companies House introduces these processes in a genuinely streamlined and supportive way, it could end up making compliance more burdensome than necessary.
That said, we're here to help. We'll monitor developments closely and guide you through each step, so you're not left trying to make sense of it on your own. If anything becomes overly time-consuming or disruptive, we'll do what we can to help simplify it and take some of the load off your plate.
If you've got any concerns about how this affects your business, please get in touch. We're always happy to talk it through and plan ahead.