The Big Change Ahead: UK Directors and the New Digital ID Rules

The UK is entering one of the most significant phases of company law reform in decades. Through the Economic Crime and Corporate Transparency Act (ECCTA), the government is reshaping how Companies House operates, making the system more secure, transparent, and reliable.

For directors and business owners, the most important upcoming development is the rollout of mandatory Digital ID verification. This change, along with new filing and address requirements, will affect how all UK companies are managed and how information is submitted to Companies House.

At HPT Group, we want to ensure our clients understand what’s changing, when it’s happening, and how to stay fully compliant without unnecessary disruption.

What’s Changed So Far

From March 2024, several new Companies House rules came into force. These early measures set the stage for the full reform.

All UK companies must now:

• Provide a registered email address, used for official correspondence (not displayed publicly).
• Confirm that their business activities are lawful as part of their annual confirmation statement.
• Use a valid registered office address, one where official mail can be received and acknowledged by the company.

Companies House has also gained stronger powers to question suspicious filings, remove inaccurate information, and take enforcement action when needed. This marks a clear shift from being a passive record-keeper to an active regulator.

The Digital ID Rollout

Starting 18 November 2025, identity verification will become mandatory for:

• All company directors (including shadow directors),
• People with Significant Control (PSCs),
• Members of LLPs, and
• Anyone filing on behalf of a company.

This new Digital ID requirement aims to prevent fraud, improve transparency, and ensure that only verified individuals can manage or own UK companies.

How Verification Will Work

There will be two main ways to verify your identity:

1. Direct Verification with Companies House
2. Individuals will use the Government’s digital platform (via GOV.UK One Login and the ID Check app) to scan an approved photo ID such as a passport or driving licence, along with a quick facial recognition check. Once verified, each person will receive a unique code linking their identity to their role at Companies House.
3. Verification via an Authorised Corporate Service Provider (ACSP)
4. Accountants, solicitors, or formation agents such as HPT Group, can carry out verification on behalf of directors and PSCs. This is often the simplest option, especially for clients who prefer managed compliance or have complex company structures or overseas directors.

Timelines and Deadlines

The digital identity process begins with a voluntary phase in April 2025, allowing companies to verify ahead of time.

From 18 November 2025, all new directors and PSCs must complete ID verification before appointment or incorporation.

For existing directors and PSCs, there will be a 12-month transition period, tied to each company’s next confirmation statement. This means each company will have a specific verification window depending on its filing date, running through to late 2026.

Failing to verify on time may result in penalties, disqualification, or rejected filings, so early preparation is essential.

What Companies Should Do Now

To get ahead of these changes, we recommend a few practical steps:

1. Identify who needs to verify.
2. Create a clear list of all current directors, PSCs, and LLP members, especially those based overseas or with multiple roles across group companies.
3. Decide your verification route.
4. UK-based individuals can use the GOV.UK system directly, but many clients will find it easier and faster to complete verification through HPT Group or another ACSP.
5. Review your company information.
6. Ensure that your registered office address, lawful purpose statement, and email address are accurate and compliant with the new standards.
7. Plan ahead for overseas directors.
8. Verification may take longer for those outside the UK, so it’s worth preparing documents early to avoid delays once the rollout begins.

What This Means for Directors

From late 2025 onwards, it will no longer be possible to incorporate a company or appoint a director without verified ID. Likewise, annual filings and updates will only be accepted if all relevant individuals have completed the process.

Companies House will also have greater power to challenge or remove information that appears incorrect or incomplete. This means accuracy and transparency are more important than ever.

How HPT Group Can Support You

At HPT Group, we’re preparing our clients for a smooth transition into this new era of corporate transparency. Our team can:

• Assess your current company structure and determine who must complete ID verification.
• Create a tailored verification timetable aligned to your filing dates.
• Manage the Digital ID process through our Authorised Corporate Service Provider status, ensuring everything is handled correctly and on time.

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