⚠️ Important Changes at Companies House: What You Need to Know as a Company Director.

The government is making big changes to how companies file information at Companies House. These changes aim to make the company register more accurate, help prevent fraud, and improve transparency across UK businesses.

If you’re a company director, here’s a clear overview of what’s changing and what it means for you.

Identity Checks for Directors:

One of the biggest changes is that all company directors and people with significant control (PSCs) will need to prove their identity before they can act for a company.

This means:

• You’ll need to verify your identity online using a government service (GOV.UK One Login), or

• Your accountant or agent can verify your identity on your behalf if they are an Authorised Corporate Service Provider (ACSP).

  
  

This will apply to both new and existing directors, and is expected to begin from late 2025.

What You’ll Need to File With Your Company Accounts:

The type of accounts you can file is changing, especially if you're a small company or micro-entity.

Here’s what’s changing:

• All small companies will need to file:

  • A profit and loss account (showing income and expenses)

  • A directors’ report

• All micro-entities (the very smallest companies) will need to file a profit and loss account (but don’t have to include a directors’ report)

• The option to file abridged accounts will be removed

• If your company claims an audit exemption (for example, if it’s dormant), you’ll need to confirm why you qualify

  
  

These changes are expected to start within the next 1–2 years.

What Counts as a Small Company or Micro-Entity?

You’re a small company if you meet 2 of the following:

• Turnover of £10.2 million or less

• Assets worth £5.1 million or less

• 50 employees or fewer

  
  

You’re a micro-entity if you meet 2 of the following:

• Turnover of £632,000 or less

• Assets worth £316,000 or less

• 10 employees or fewer

  
  

Filing Will Be Software-Only Soon

Currently, many companies file online via WebFiling. But by April 2027, the plan is to make filing software-only — meaning you’ll need to use approved accounting software to submit your accounts. This rule is still under review but it’s worth preparing early.

Why These Changes Matter

These reforms are designed to:

• Stop people from misusing company structures for fraud or money laundering

• Make company information more reliable for banks, customers, and HMRC

• Give Companies House more power to spot and act on suspicious or false filings

  
  

What Should You Do Now?

• Be ready for ID verification (especially if you're setting up a new company)

• Speak to your accountant about how these filing changes affect your business

• Plan to stop using abridged accounts and be ready to file a full profit and loss statement

• Make sure you're eligible if you're claiming an audit exemption

• Consider moving to accounting software now, so you're ready for future digital filing requirements

  
  

Need help or advice?

We’re happy to guide you through these changes and make sure your business stays compliant.