Companies House has recently started contacting  companies and LLPs urging them to get ahead of the curve in respect of ID Verification.

While there is no immediate need to do this, the deadline could come around quickly after the introduction in Autumn 2025, requiring ID verification to be completed before filing the next annual confirmation statement and any new officers to be verified.

Under the Economic Crime and Corporate Transparency Act 2023 the UK government has introduced identity verification for individuals involved in UK corporates. This is a major reform aimed at improving corporate transparency and tackling economic crime. Currently ID Verification is voluntary but this will  become mandatory in the Autumn of 2025 (exact date to be confirmed).

Who will be required to verify their ID?

All new and existing:

• Directors
• Persons with significant control (‘PSC’)
• Members of limited liability partnerships
• Director equivalents (eg general partners and managing officers)
• Someone who files for a company (eg company secretary).

Before attempting to verify their identity, individuals should ensure that the personal details they have already disclosed to Companies House (if any) are accurate and up-to-date.

When will ID Verification be required?

Despite an expected twelve-month transition until Autumn 2026, the deadline for each entity is anticipated to be linked to the annual confirmation statement filing.

By the end of the 12-month transition period it is therefore expected that all relevant individuals will have had their identity verified. During this period, it is anticipated that individuals will not be able to be appointed as a director or notified as a PSC until their ID has been verified and that entities will need to ensure that all relevant individuals have had their ID verified before filing their annual confirmation statement.

Records of ID verification will be maintained at Companies House so it will only be necessary to verify someone's identity once, except in specific circumstances (eg if someone changes their name).

What happens if you fail to verify ID?

Individuals will be committing an offense and may have to pay a fine if they don’t comply with ID Verification once it becomes a legal requirement.

Non-compliance may result in the entity and other directors committing an offence, the inability to file documents or create a new company at Companies House, and disqualification from acting as a director.

How does ID verification work?

There will be two methods of ID verification available (direct and indirect), both having the same level of identity assurance.

Direct – via Companies House and the GOV.UK One Login

There should be no charge for ID verification using any of the following methods outlined by Companies House.

Individuals can verify their identity directly with Companies House via the GOV.UK One Login.  This is a free service which matches a person to their primary ID document (e.g. a passport or photo driving licence) using biometric technology. The aim is to make the process as easy as possible and verification can be done via a smartphone.

Those who do not have an acceptable type of photo ID but who live in the UK may still be able to verify their identity using their bank or building society details and National Insurance number through the GOV.UK service. This will also require the applicant to answer some security questions.

Individuals that cannot verify online, may be able to complete the ID verification process that they started on the Companies House ID service at a Post Office that offers 'in branch’ verification.

Indirect – using an agent

For those unable to use or access the direct service ID verification can also be carried out by an Authorised Corporate Service Provider (ACSP) being an intermediary such as a professional services firm  or company formation agent. Please be aware that ACSPs will charge for this service.

While RSM does not intend to offer ID verification service, we can provide the details of ACSPs we work with upon request.

Every individual must interact personally with GOV.UK or an ACSP to verify their identity. No-one can do this on someone else’s behalf.

Everyone whose identity has been verified will receive a unique identity code which will need to be kept in a safe place. This code will need to be disclosed for certain filings at Companies House once mandatory ID verification has been implemented.

If you would like further information about how the Companies House reforms might impact your business, please do not hesitate to get in touch with Trish Sankey or your usual RSM contact.

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