Important changes are coming in the Autumn of 2025. These changes will affect every company director. This post discusses the New Director ID Verification Rules and what action you need to take.
Why are these rules being introduced?
These changes form part of the Economic Crime and Corporate Transparency Act. The UK government's intention is to use the new director ID verification rules to reduce fraud and increase corporate transparency.
Who do these new rules apply to?
From Autumn 2025 the new identification verification process will become compulsory and apply to the following:
How will directors verify their identity?
There are several ways to verify your identity. The first method is to use the government's online service which is free of charge.
Alternatively you can use an Authorised Corporate Service Provider (ACSP) to verify your identity on your behalf. For example, this could be an accountant or solicitor. This is also known as a Companies House authorised agent.
The final option is to verify your identity at your nearest post office.
What happens if you fail to comply?
Failing to verify your identity has serious ramifications. For example, your appointment may be rejected or removed by Companies House.
Additionally an unverified director may face civil penalties. In some cases, you could even be disqualified from acting as a company director.
Summary
If you’re using an agent, then it's important to speak to them now. You'll need to ensure they’re registered as an ACSP and understand the process.
It’s also a good time to review and update your company records to ensure they reflect any inactive or outdated directorships. You may also want to review your other compliance requirements now that the Companies House service is closing.
The new director ID verification rules are a key change for UK companies. They have been implemented to promote trust, safety, and transparency.
Act now to stay compliant, protect your company, and avoid unnecessary stress now the rules take are taking effect.
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