Company directors face new ID checks – how to avoid paying hundreds on verification

Company directors are facing new ID checks in the coming months but many could end up unnecessarily paying hundreds of pounds to comply.

New Companies House rules are being introduced from autumn 2025 to tackle fraud and scams by introducing mandatory identity verification for all limited company directors and any persons of significant control.

The rules were introduced under the Economic Crime and Corporate Transparency Act and have been voluntary since April 2025.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

They will be made mandatory from this autumn, meaning company directors will need to complete an ID check in time for when they next send a confirmation statement to confirm their business details.

Companies House can impose penalties or even disqualify directors for failing to comply.

Its own data shows more than 200,000 of the six to seven million people expected to verify their ID have done so.

This is part of wider efforts by Companies House to tackle issues of fraud in its register.

Companies House said its ID clampdown so far has meant it has queried and removed false, misleading or incorrect information from the registers, with an impact on 100,400 companies.

This often relates to innocent people’s ID being taken to support fraud or money laundering.

Companies House also rejected 10,200 suspicious applications including where evidence has suggested mass incorporations at certain addresses are taking place - this practice has a known link with money laundering.

Louise Smyth, chief executive of Companies House, said: “Our new intelligence capabilities have now already facilitated approximately 850 intelligence reports to law enforcement partners, while our risk-based approach targets resources where they’ll have the greatest impact on economic crime.

“As we prepare for the next phase of implementation, including mandatory identity verification by autumn 2025, we remain committed to creating a transparent company register that supports economic growth while making the UK a hostile environment for those looking to commit economic crime.”

While the fraud clampdown may be working, MoneyWeek has found some company directors remain unaware of the changes and have been confused by emails from Companies House. We have also seen examples of people having faced technical issues.

Some accountants are charging £45 to complete the process while some law firms have fees of around £250.

That is despite the ID check only taking a couple of minutes to complete.

Here is what you need to know.

What are the Companies House identity changes?

From autumn 2025, anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove they are who they claim to be.  

No official date has been given but experts have advised complying as soon as possible.

The aim is to reduce the risk of fraud and improve transparency, trust and accuracy of information on the Companies House register.

The ID check only needs to be done once.

Adam Cockroft, partner and head of the corporate and commercial team at Ramsdens Solicitors, said: “While the aim is simple; improving transparency, the practical implications for businesses are considerable.

“By placing greater emphasis on accountability and transparency, these reforms aim to reshape how companies are managed and how information is recorded. As Companies House moves towards implementation, identity verification is set to become a defining feature of corporate life in the UK."

But despite the changes being voluntary since April, many company directors have been caught unaware.

Companies House has been emailing directors from companies.house@notifications.service.gov.uk.

This is a genuine email address but amid a rise of scams, some have been suspicious about how genuine it is and have only acted once prompted by their accountant.

How to verify your identity to Companies House for free

There are three ways to verify your identity as a company director.

The most simple way is to verify online but you will need to setup a free Gov.uk One Login.

This is different to your government gateway and Companies House account, so means remembering another login and password.

Once a login is created, you will need to download the government’s One Login app.

You will then need to use your smartphone to scan a passport or driving licence through the app and then take a selfie to confirm your ID.

There is also a no-photo option that can be done online by submitting a bank statement.

If approved, you will then receive a code from Companies House that confirms your ID check and can be used by you or your accountant when filing a confirmation statement for your business.

You can also get help in a Post Office if you have a One Login setup, or by using an accountant or lawyer.

How easy is it to verify your identify to Companies House?

It only takes a few minutes to complete the ID check once you have a login and have connected to your Companies House business account.

That should make the process easy if you run your own business or have a company with only a few directors.

But there have been complaints about technical issues, which is pushing some people to pay for a service that actually doesn’t take long.

Rob Peters, principal at Simple Fast Mortgage, told MoneyWeek. “No one wants fraud in the system so most accountants and directors agree in principle with ID checks, but the lack of clear guidance has created confusion.

“Some clients are being quoted steep fees by third parties, while others are trying to do it themselves but unsure how. I tried to do it myself and the system didn't work correctly. My accountant charged £75 to complete it for me but other firms are charging up to £250.”

Another broker, Rohit Kohli of The Mortgage Stop, added: “So far its been a bit of a farce, from getting a request out of the blue with no real explanation to the actual process of doing it.

“You need to create another login as well as having your previous Companies House logins, as well as government gateway logins.

“We tried to do it yesterday and the system kept saying something went wrong please try again later. I'd go to a Post Office but they're all closing down.”

Despite the confusion and difficulties, Meg Ogunsola, global director of entity management solutions at business advisory firm Vistra, warns it is vital to comply.

She said: “Firms that delay verification and do not comply could face serious consequences. Directors and persons of significant control, as well as the companies they represent, may not be permitted to file documents, partake in acquisitions, and company officers could even be disqualified, all of which could cause lasting operational, as well as reputational damage.

“There are potentially severe financial repercussions too, including unlimited fines. Regulators will have no qualms about demonstrating the consequences of non-compliance, and firms left behind may be made into examples as we have seen with previous regulations such as GDPR.”

A government spokesperson said: “To support business and help people verify their identities, Companies House is contacting all companies with advice and guidance.

“This is part of a coordinated effort to help companies to comply before it becomes a legal requirement.

“We encourage people to verify as early as possible.

“Inclusion is at the heart of GOV.UK One Login, designed with those needing digital support in mind. It offers simple content, in-person identity verification at the Post Office, and contact centre assistance, supported with regular user testing to make GOV.UK One Login as accessible as possible.”