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What does the Companies House reform on ID verification mean for accountants?

When The Economic Crime and Corporate Transparency Bill became law last year, it proved to be momentous for Companies House, granting it new and enhanced powers to prevent economic crime and illegitimate use of the register.  

At the heart of these changes, which were first rolled out in March earlier this year, was identity verification and prioritising removal of people’s names and addresses that had been used on the register without their consent. The aim of doing so, is to improve the integrity of the UK business registration process through this enhanced identity checking.  

But, for accountants, who the FCA have dubbed gatekeepers to a legitimate economy but also one of the most vulnerable to the risk of money laundering, there may be pressure felt to lead by example. Let’s take a deeper look at the reform and what it means for accountants.  

How have compliance requirements changed? 

From autumn 2025, under the reform, all new directors and people with significant control (PSCs) will be required to complete identity verification.  

This verification process will also apply to: 

  • Members of a limited liability partnership (LLP) 
  • Directors and PSCs from all existing companies 
  • Anyone acting on behalf of a company prior to filing any information with Companies House (this will be coming into effect from spring 2026).  

What do the changes mean for accountants? 

There are a few core ways accountants will see their general day-to-day duties change as the reform evolves through its various deadlines, both when onboarding new clients and working with existing ones.  

1. Guiding clients on the verification process 

For the accounting sector, this means there’s great responsibility laying with accountants to ensure their clients have all undergone the required verification process before engaging in business with them—or continuing to, in the case of existing clients. Not only that, but as accountants so often act as the “middleman” for clients, they’ll be expected to know the ins and outs of the verification process and be able to guide clients through what needs to be done.  

Accountants will need to request and collect the required identification documents (ensuring they are valid with regards to the reform’s requirements) and submit these through to Companies House as standard when bringing a new client on and maintaining compliance with their existing clientele.  

2. Continuous monitoring on corporate governance changes  

While closely looking at a company’s corporate structure has always been a key component of AML checks—for example, knowing about beneficial owners, politically exposed persons and sanctions—changes from the reform will place an even greater emphasis on doing this.  

Under the reform, accountants will be required to efficiently respond to any changes to the structure of a company, like the appointment of new directors or PSCs, by ensuring identity verification has been done to account for these changes. As this will need to be done on a continual basis, there’s certainly an added pressure on accountants to now keep up with their clients’ corporate governance information and be aware ahead of time about any changes that will require verification. Only in doing so, will accountants be able to continue to offer an efficient and compliant service.  

3. Mitigating delays with incorporation projects  

Given the identity verification processes introduced under the new reform mean more thorough and continual checks, there’s every suggestion that more time will be needed to complete important incorporation projects and their associated tasks. To mitigate any delays, accountants will need to factor in time required for identity checks and ensure they’re gathering all relevant documentation ahead of registering new companies with Companies House.  

Being upfront about the potential for these delays to clients should the information not be presented at the earliest possibility, should mean accountants will still see a smooth, efficient process when working on incorporations.  

Keeping up with the ever-evolving compliance landscape can be a minefield to navigate—especially when you’re already working in such a fast-paced industry. But without investing the right time and resources into doing so, accountancy firms will find themselves exposed to the detrimental effects of financial and reputational loss from non-compliance.  

Our suite of automated compliance solutions for accountants give you all the tools you need to remain compliant, without compromising on efficient and effective service to your clients. Want to find out more or get a free demo? Get in touch with our friendly team today.  

 

Author

Richard Devine

Solutions Consultant

Email | LinkedIn



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