If you're a director of a limited company, Companies House has recently announced some significant changes it is making, which will apply to all UK companies and their directors.

The reforms are outlined in the Economic Crime and Corporate Transparency Act 2023, which aims to tackle fraud, improve corporate openness, and strengthen the UK's standing as a secure and trustworthy environment for business.

This article has been written to help company directors understand the key changes and what they will need to do to comply with the new rules. Companies House aims to increase trust in the information it holds and make it more difficult for criminals to misuse company structures.

What's changing at Companies House?

From now through 2027, Companies House is rolling out significant updates. These include:

  • A stricter ID verification process for directors
  • Mandatory digital filing of accounts
  • Additional reporting requirements for small and micro-entity companies

What is the new Companies House ID verification process, and who does it apply to?

Directors, People with Significant Control, and anyone setting up a company will need to verify their identity online by uploading a valid photo ID, such as a passport or driving licence, through Companies House's secure portal.

The ID verification process will be mandatory from Autumn 2025. This measure aims to reduce fraudulent appointments and false filings, ensuring transparency and compliance for all companies.

What are the changes to filing profit and loss accounts, and who will be affected?

From 1 April 2027, micro-entities and small companies will be required to upload a full profit and loss account as part of their filings with Companies House. Currently, these companies only need to file abridged accounts.

As a reminder, here are the definitions:

  • Micro-entity: Must meet two of the following:
    • Turnover under £632,000
    • Assets less than £316,000
    • Fewer than 10 employees
  • Small company: Qualifies if it meets two of these:
    • Turnover under £10.2 million
    • Assets less than £5.1 million
    • Fewer than 50 employees

When does digital-only filing come into effect?

From 1 April 2027, all companies will be required to submit their accounts digitally using compatible software. Companies House will no longer accept paper and web-based filing options from this date.

This streamlined approach is designed to improve data accuracy, minimise manual handling, and facilitate quicker processing by Companies House.

What happens if I miss the April 2027 deadline?

Missing the deadline could lead to:

  • Rejected filings
  • Late penalties
  • Compliance issues

Companies House won't accept paper or web-filed accounts, and insufficient ID verification may delay appointments or trigger investigations.

How can DWilkinson&Company Chartered Accountants help?

The team at DWilkinson&Company are already helping our existing clients transition to the new rules. If you're not yet working with us, we can:

  • Explain the ID verification process and guide you through submitting your code for future filings
  • Recommend trusted digital accounting software to prepare and file your own accounts
  • Advise you on restructuring or unincorporating if you prefer to keep financial details private

To find out more about the Companies House changes and how DWilkinson&Company can help, please get in touch at 0113 320 0001 or email office@dwco.co.uk.