Companies House is coming for non-compliant businesses – How do you stay on the right side?

In the wake of the Economic Crime and Corporate Transparency Act 2023, Companies House has undergone a dramatic transformation.

Empowered with the tools needed to crack down on fraud and errors that were rife within company filings.

While this will ultimately be good news for legitimate businesses as the space will be less cluttered with bad actors, there is an uncomfortable transition period to get through first.

You may have noticed that Companies House are breathing down your neck, so it is important to understand what you need to do to stay compliant and take away the stress.

Do I need to verify my identity with Companies House?

Nearly all of the changes made to Companies House are designed to make sure that only legitimate businesses can make filings.

A big part of this has been the introduction of mandatory identity verification for Directors and Persons with Significant Control (PSCs).

While this took effect from 18 November 2025 for new directors and PSCs, existing directors and PSCs are now sitting in a 12-month transition period and will face enforcement from 18 November 2026 for non-compliance.

Verifying your identity with Companies House is a strict legal requirement, with serious penalties for those who fail to comply.

If you do not keep up with this new requirement, then you are on the hook for fines, personal liability and even prosecution, as this will count as a breach of the Companies Act 2006.

It can also result in the company being struck off the register for non-compliance.

As the identity verification is now the biggest barrier to filing this year, you need to get ready ahead of time.

We have noticed that Companies House are particularly eager to make sure that those affected are aware that they need to verify their identity ahead of time.

Some companies may have already faced threats of being struck off for not having verified the identity of all necessary individuals, even if they still have time to do so.

Given the severity of the situation, it is no wonder that Companies House are giving this so much attention, so do not think that you can afford to let this drop off your radar.

How can I verify my identity to stay compliant?

Verification can be completed by the individual using GOV.UK One Login, but if a business wants help with the process, they can use the services of a registered Authorised Corporate Service Provider (ACSP).

ACSPs are authorised to handle identity checks on your behalf, manage the process end-to-end and submit filings to Companies House.

ACSPs will charge a fee for their services and for verifying your identity using the GOV.UK One Login is free but lacks the oversight of a professional.

You should be aware that, from spring 2026, it will be necessary for Limited Partnerships to use an ACSP to have identities verified and it will not be possible for them to use the GOV.UK One Login.

There seems to be a lack of awareness of this caveat and it could lead to some Limited Partnerships finding themselves in trouble if they leave it too close to the deadline to verify their identity, only to find they cannot do it themselves.

Staying ahead of the game, to the extent that it is still possible to do so, is the best way to ensure you do not get caught out.

If there are people in your business who have not yet verified their identity but need to do so, now is the time to get this sorted out.

This can be challenging if directors or PSCs live in different countries, but failing to coordinate this can lead to issues for everyone.

Once done, the identity verification is valid indefinitely until something significant causes it to become outdated.

These are the usual things that cause identity to become outdated, like changing your name or leaving the role.

You will only need to worry about identity verification in the future if your company picks up a new director or PSC.

Identity verification for all new PSC appointments should be completed within 14 days to avoid breaching compliance and jeopardising the reputation of your business.

What other changes to Companies House should I know about?

One of the changes that may catch you off guard is the recent tweaks to the prices of filing with Companies House.

From 1 February 2026, the cost of filing a Confirmation Statement digitally will increase to £50, up from the £34 you likely paid last year.

As there is an effort to push more businesses to adopt a digital approach, the cost of paper filing will increase from £62 to £110.

If you are looking to incorporate a company this year, then you will need to contend with increased incorporation costs as digital filings will increase from £50 to £100, while the incorporation paper filing fee will rise from £71 to £124.

While these costs are not likely to break the bank, they still need to be paid in full to avoid acting as a barrier to making your filings.

There are more changes waiting in the wings, but we do not yet know what they may be.

The 2025-2030 Companies House Strategy was revealed at the end of last year and has signalled that more changes will focus on improving compliance and digitising the system.

This seems to be a continuation of what began with the ECCTA, so mastering the current changes will put you in better standing to brace for future changes.

As soon as concrete details about Companies House changes are revealed, we will let you know.

For the time being, we will help you understand your current responsibilities so that you can keep up with Companies House.