New Rules from Companies House: A Simple Guide and Checklist

Companies House, working under the new Economic Crime and Corporate Transparency Act 2023, is introducing important changes for UK companies. These changes are all about making things clearer, stopping fraudulent activity, and ensuring the information they hold is accurate and up to date.

We’ve broken down the two main changes for you, along with a handy checklist to help you get ready.

1. Proving Who You Are (Identity Verification)

What’s happening?
From 18 November 2025, identity verification will become mandatory for:

All new directors and People with Significant Control (PSCs – those who own or control a company).
Everyone who is already a director or PSC (there will be a 12-month transition period beginning on 18 November 2025 for existing officers).
Anyone who acts on behalf of a company (this requirement for general filers is expected to commence later, likely in Spring 2026).

This also includes members of limited liability partnerships (LLPs) and other types of registrations.

Why is this important?
This process is designed to make it harder for individuals to use companies for illegal purposes. Failure to comply is a serious matter and could result in fines, an inability to file documents for your company, or even the inability to set up a new company until your identity is verified.

How to prove your identity:

You have two options for completing your ID Verification (IDV):

Option 1: Do it yourself (Free)

This is a simple online process and can be done for free.
You can find all official information and the link to complete the check here

Option 2: Have Factotum help (Small charge)

As an Authorised Corporate Service Provider (ACSP), Factotum can handle this process for you.
Our fee for this service is £75 plus VAT.
Get in touch with us at filing@factotum.com if you’d like a hand.

Our advice

We strongly recommend you start this voluntary process if you haven’t already. Doing it now could save you a lot of hassle and delays when the compulsory date of 18 November 2025 arrives, especially if your company has many officers or if any of them are based outside the UK. Existing officers should be aware that their final deadline will be linked to their company’s first Confirmation Statement filing after this date (within the 12-month transition).

Your Companies House Personal Code

Once your identity verification is complete, Companies House will send you a unique Companies House personal code. This code is 100% personal to you as an individual; it simply proves that you are a verified person and is not tied to any single company you work with.

Important things about your code:

What to do with It: Keep the code safe and secure, like a password.
Who to share it with: You must share this code with anyone you trust to file documents for your company, such as your accountant or company agent.
Why they need it: Your accountant uses your code in official company filings (like the Confirmation Statement) to show Companies House that you are a verified director or PSC. Without this code, they won’t be able to submit filings once the new rules are mandatory.

2. Digital Filing for Company Accounts & New Reporting

What’s happening? From 1 April 2027, all companies will be required to submit their yearly accounts using verified digital software. Companies House will be closing its online and paper systems for accounts on that date.

Key changes from 1 April 2027:

Software is a must: If you file your own accounts, you must do so digitally using commercial software – no more online forms or paper copies for accounts. If we currently handle your company accounts, we’ve got you covered. We’re ahead of the changes and already use compliant software.
Profit and Loss for small companies: Even small and micro-entity companies will now need to provide profit and loss accounts. The option to file abridged accounts will be removed.
More changes coming: They’re planning other updates too, such as requiring an enhanced director’s statement when claiming audit exemptions and limiting the ability to shorten accounting periods. We’ll share more information on these as it becomes available.

Why are these changes happening?

These changes are part of the broader plan under the Economic Crime and Corporate Transparency Act 2023. The main aim is to make the data on the register more accurate and higher quality, reduce mistakes, speed up processing, and help Companies House spot and prevent fraud more easily. Making basic profit and loss information public should make it easier for companies to get credit and help people feel more confident when doing business with a company. It also helps deter money laundering.

Your Simple Checklist:

Here’s a quick guide to help you get ready for these changes:

For Proving Your Identity – Everyone needs to do this ASAP:

Work out who needs to verify their identity (that’s all directors, PSCs, and anyone acting for the company, including LLP members).
Plan to verify your identity voluntarily as soon as possible, either through GOV.UK One Login.
For existing Directors/PSCs: Understand that you have a 12-month window starting 18 November 2025, with your deadline linked to your next Confirmation Statement.

For Digital Accounts Filing – If you file your accounts yourself:

Are you already using commercial software to submit them? If not, it’s crucial to start researching, choosing, and transitioning to suitable accounting software that meets Companies House’s requirements well before the 1 April 2027 deadline.
Remember the new rule: even small and micro-entity companies will now need to file profit and loss accounts (the abridged accounts option is being removed).
Keep an eye out for further updates from Companies House on audit exemptions and accounting periods.

These changes are all about creating a more open and secure business world here in the UK. While it might be tempting to leave things until the last minute, we advise against it. Taking action now will help ensure a smooth transition, preventing any potential hiccups and keeping you fully compliant with the new rules.