Upcoming Identity Verification Rules: What Directors Need to Know

From November 2025, significant changes are coming for company directors and people with significant control (PSCs) in the UK. Here’s what you, as a director, need to know to stay compliant and protect your business.

What's Changing?

Mandatory Identity Verification

All directors and PSCs must verify their identities with Companies House. New directors will need to do this before joining a company, while existing directors and PSCs have a 12-month window to comply, tied to their next annual confirmation statement.

Consequences of Non-Compliance

Failing to verify your identity could mean financial penalties, being unable to make statutory filings, company strike-off, and even director disqualification.

Why is this happening?

The new rules, part of the Economic Crime and Corporate Transparency Act 2023, aim to:

• Increase trust in UK companies
• Reduce fraud and economic crime
• Ensure company data is accurate and reliable

Are directors ready?

• 60% of business decision-makers are aware of the new requirements
• 81% support the changes
• 73% believe the process will be straightforward
• However, up to 2.8 million individuals remain unaware, so spread the word!

Key dates and further reforms

• From 18 November 2025:

  Mandatory verification commences for new directors and PSCs. Existing directors and PSCs will be able to check the Companies House register to see identity verification due dates for all their roles.

• Spring 2026:

  Identity verification becomes compulsory for all document filings. Third-party agents must register, and filings by disqualified directors will be rejected.

• End of 2026:

  More information will be required from limited partnerships, and there will be increased compliance checks.

• Accounts Reform:
  • Software-only filing for accounts
  • Removal of abridged accounts for small companies
  • Mandatory profit and loss accounts
  • Enhanced audit exemption statements
• Corporate Directors:
  • Any corporate directors of companies will be restricted to those with all-natural person boards, all of which will be required to verify their identity.
  • Only UK entities with legal personality can act as corporate directors, with the use of overseas companies acting as corporate directors in the UK being prohibited.

Insurance Implications

Your D&O policy should cover you should you fall foul of the new regulations so make sure you have this in place.

In anticipation of the changes, some D&O insurers have advised us that they will be confirming coverage under their policy wordings by adding an extension specifically confirming coverage for non-compliance is included.

Whilst extensions give clarification of coverage for certain matters, this can potentially have a limiting effect on other areas of coverage & the premise being that if numerous items of cover are specifically referenced by way of extension, matters that are not so identified are arguably excluded.

Additionally, extensions often come with sub-limits of indemnity which are lower than the main policy limit. Conversely, without a sub-limited extension the full limit of the main policy would be available to policyholders making a claim.

Ideally, your policy should be broad enough to cover these matters without needing specific extensions but if you are unsure then check with your insurance broker!

In summary

These reforms are the most significant changes to Companies House since 1844. They're designed to make UK business more transparent and trustworthy. Make sure you and your fellow directors are prepared - verify your identity, review your insurance, and stay ahead of the curve.