Identity Verification at Companies House – why is this being introduced and what do I need to do?
Paula Veysey-Smith • 26 August 2025
Have you ever been a victim of identity fraud? It’s very unpleasant, can cause financial hardship and always causes distress. My own son himself found out that he had been appointed a Director of a bogus Limited Company with no knowledge! I have also included a guide further down as to what to do if you find yourself in this unfortunately situation.
From 18 November 2025, all company directors and people with significant control (PSCs) will be legally required to verify their identity at Companies House. Its primary aim is to prevent misuse of UK companies, namely fraud, money laundering, illicit financial activity, and concealment of ownership. The requirement helps ensure individuals registered as directors or PSCs (Persons with Significant Control) are genuine, not fictitious or fraudulent identities.
Why are these changes happening?
The new measures are certainly a good safeguard to avoid innocent individuals being taken advantage of. Fraud and false entries have been a persistent problem, including cases of fictional directors like “Darth Vader” or “Santa Claus.” The Identity Verification (IDV) system will help to reduce such abuse. It’s also intended to improve data quality, helping users of the register, such as investors, banks, and regulators, make informed decisions.
The move also fits within global trends of combating shell company abuse and boosting beneficial ownership transparency which does prevent financial crime through identity clarity.
However, it does require some necessary administration in completing the verification Here’s a guide to help you comply:
How to Complete Verification
Two Main Routes:
- Directly via Companies House using GOV.UK One Login
- Free and online.
- Requires a government-issued photo ID (e.g., biometric passport or driving licence), a selfie, or bank statement for identity confirmation.
- Through an Authorised Corporate Service Provider (ACSP)
- These include accountants, solicitors, formation agents etc., supervised under UK Anti-Money Laundering regulations, and approved by Companies House.
- ACSPs conduct the ID check and submit on your behalf.
Once verified, individuals receive a personal code from Companies House, reusable across all company roles.
I have used the first route myself and it was relatively easy and did not take much time.
What If You Don’t Comply?
It will be Illegal to act as a director or PSC without completing verification by the relevant deadline.
- Companies may be prevented from filing documents, face financial penalties, director disqualification, and even company dissolution.
- Enforcement will include annotations on the register, rejection of filings, and fines.
- Some third-party providers are charging between £45–£250, despite the process being quick and free via One Login.
What You Can Do Now
- Verify early, especially if you’re a director or PSC. It's quick via GOV.UK One Login.
- Confirm your confirmation statement dates, which will determine your deadlines. After 18 November, the Companies House register will show upcoming due dates.
- Ensure your company’s registered email is up to date to receive guidance, reminders, and notices from Companies House.
What Can I do if my name has been used fraudulently as a Company Director?
1. Confirm the Details
- Check the entry on the Companies House register using their free webcheck service.
- Download the filing history and director details to confirm where and how your name has been used.
- Note the company number, filing date, and any associated documents.
2. Report the Fraud to Companies House
- Email: integrity@companieshouse.gov.uk providing the following details:
- Your full name and contact details
- The company number and name
- Copies/screenshots of the record showing your name
- A statement that you have no connection to the company
Companies House has a dedicated team handling such “identity misuse” cases. They can annotate the register to flag the record as potentially fraudulent while they investigate.
3. Report to Action Fraud
- Go to Action Fraud (the UK’s national reporting centre for fraud).
- File a report of identity theft/corporate identity fraud.
- You will get a crime reference number, which may help if you need to dispute financial or credit implications later.
You can take further action such as considering a Protect Statement, protecting yourself against wider identity theft and even seeking legal advice.
MPower is not an ACSP so we can’t conduct the ID check and submit on your behalf. However, we are available to guide you through the process of completing the identity verification at Companies House so please do contact us if you need a helping hand.
Now you can be excused if you’ve missed the announcement of the latest price increases by Xero. Apart from a rather low key “Pricing Update” notice and customer emails there has been little else published on the internet explaining the latest round of increases in the Xero Plans. So, here’s your opportunity to understand how Xero’s recent update will impact the plan you are on.
With many tax payers facing yet another payment to the HMRC on the 31st July let’s answer some frequently asked questions about the Payments on Account System. When was this system first introduced? The Payments on Account system was introduced in the 1996–97 tax year , as part of the Self-Assessment overhaul. Before then, HMRC had a fragmented and less predictable system for collecting income tax from self-employed individuals and others outside the PAYE system. It was introduced to ensure that taxpayers pay tax closer to when they earn their income , rather than facing a large lump sum payment long after the end of the tax year. Why did HMRC introduce Payments on Account? There are three key reasons why HMRC introduced this system: Cash flow for HMRC : This undoubtably is a driving reason for Payments on Account as it spreads the inflow of tax revenue more evenly throughout the year rather than relying on one big payment annually after a tax demand was sent to the tax payer. Encourages prompt payment : Tax is collected in advance (based on the prior year’s bill), reducing the risk of default or late payments. Helps tax-payers budget : Although first going into the Payment on Account system is painful as your tax bill, and half of it again, need to be paid on 31st January. Once in though, it does avoid the shock of a large single tax bill by splitting the liability into two smaller payments. So how does the Payments on Account system work? Who Needs to Make Payments on Account? You’ll need to make payments on account if your tax bill is more than £1,000 and less than 80% of your tax is collected at source (e.g., via PAYE). When Are Payments on Account Due? There are two payments each year: 31 January – First payment on account for the current tax year 31 July – Second payment on account for the current tax year Each is 50% of your previous year’s tax bill (excluding Class 2 NICs and student loan repayments). Example: Let’s say your tax bill for the 2023/24 tax year is £6,000 . On 31 January 2025 : You pay the £6,000 balance for 2023/24 Plus a £3,000 payment on account for 2024/25 (50% of £6,000) On 31 July 2025 : You pay another £3,000 as the second payment on account for 2024/25 So by July 2025, you've prepaid £6,000 towards your 2024/25 tax bill. What Happens When You File Your Next Tax Return? When you submit your 2024/25 return: If the actual tax bill is £7,000 , you’ve already paid £6,000 , so you owe £1,000 by 31 January 2026. If it’s only £5,000 , you’ve overpaid and can get a £1,000 refund or offset it against future payments. If the bill is £7,000 your tax payment will be: on 31st January 26 £1,000 balance on the 2024/25 return bill AND half of the £7,000 (£3 500) balancing payment so £4,500 in total. £3,500 balancing payment on the 31st July 26. Can You Reduce Payments on Account? Yes you can. If you expect your income to fall, you can apply to reduce them through your HMRC online account or on the paper form SA303. But if you reduce them too much, HMRC may charge interest on the underpaid amount. Will Making Tax Digital for Self-assessment change the Payments on Account System? The short answer is No! The longer answer is watch this space!! Many of us professionals believe that with quarterly reporting, quarterly paying will soon follow! For more information on Making Tax Digital for Self-assessment please see our article at: https://www.mpoweraccounting.co.uk/how-will-i-be-affected-by-making-tax-digital-for-income-tax-mtd-for-itsa The Payment on Account system often causes much confusion with self-assessment tax payers. At MPower Accounting we are used to helping our clients understand when payments need to be made and how they have been calculated. As an added service we will always send a payment reminder to clients early in July so they are not caught out. We are also delighted to work with clients who want to complete their self-assessment tax returns early to determine if they are able to reduce the July Payment on Account. Do contact us if you’d like help with Payments on Account and anything to do with your self-assessment
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Do you work from home? If you do, either full-time or part-time, you may be eligible to claim certain expenses either against your own taxes or your Limited Company ones. Many factors will determine what you can claim such as working location, employment status (employee, self-employed, company director), and how much of your home is used for work. What can I claim as an employee of a company? You can claim: A flat-rate allowance of £6 per week (or £26 per month) without needing to provide evidence of expenses. This is the simplest method and can be claimed via your tax code or tax return. The actual costs (if you don't use the flat rate) which can include a proportion of the following: Heating and electricity Internet and phone bills Water (if it’s metered and usage is clearly work-related) You cannot claim rent or mortgage interest unless you're self-employed. These expenses can be claimed via HMRC’s online portal if they have not already been reimbursed by your employer! What can I claim if self-employed (sole trader or via a Partnership)? Here you have two options: 1. Simplified Expenses (Flat Rate) Based on hours you work from home each month: 25–50 hours/month → £10/month 51–100 hours/month → £18/month 101+ hours/month → £26/month 2. Actual Expenses Method You can claim a proportion of: Rent or mortgage interest (not capital repayments) Utilities (gas, electricity, water) Council tax Internet and phone Cleaning and maintenance Home insurance (if work-related) You’ll need to work out the percentage of your home used for business, usually by the number of rooms (not including bathrooms, corridors, storage space) or square footage. One word of warning is never claim the whole use of a room for business as every room will have duality in use. This is also important if you own your home as a room declared purely an office could attract Capital Gains Tax when the property is sold. We suggest that any room should only be claimed at 90% for business. And only one room can be used, not a multiple! These costs should be included on your Self-Assessment tax return. Can I make a claim for these expenses in my Limited Company? Yes, you most certainly can. At MPower Accounting we not only recommend using the actual expenses method as set out above, we provide our clients with a bespoke spreadsheet to calculate these expenses, and others such as mileage, on a month-by-month basis. These amounts can then be claimed as expenses to the Company and paid out to you. It is one of the tax efficient methods of taking money from your business. Capturing and calculating monthly your regular working from home expenses is the best way of ensuring they are recorded correctly. To help you do this we are offering a free download of the spreadsheet usually only available to our clients; please use the link below to get this. Paying taxes is a necessary evil but I am a firm believer in minimising this liability for both individuals and companies. Correctly claiming working at home expenses is one way to reduce your tax bill. Please do contact us if we can help you further identifying all the expenses you can claim and also for further assistance in how to correctly use and populate the downloaded template.
