Companies House ID Verification: The Hidden Costs of Getting It Wrong for Directors and PSCs
- bes Accountancy Services
- Nov 2
- 6 min read
Directors and persons with significant control are about to face a new reality. Companies House identity verification becomes a legal requirement and it will affect new appointments, changes to people with significant control, and the way filings are accepted and processed. This guide explains what the rules mean in practice, where business owners trip up, and how Bes Accountancy will complete verification correctly and on time with clear pricing and a single point of contact.nership, and highlights where hidden costs arise for small and medium sized businesses.
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Why This Matters and Common Pitfalls
Identity checks under ECCTA will apply to anyone setting up, running, owning, or controlling a UK company. From 18 November 2025 new directors must verify at or before appointment and there is a transition window for existing officers linked to each company’s confirmation statement due date. Filings can be restricted if officers remain unverified, and Companies House will annotate the public register where appropriate. These rules are designed to deter fraud and increase transparency across the register.
Typical mistakes we already see include treating verification like a simple form tick, leaving checks until the evening before a filing, submitting documents with small but fatal mismatches in names or addresses, using expired passports or non compliant proof of address, and forgetting to plan for overseas directors whose evidence capture may take longer. The new regime expects digital standards, consistent data across filings, and clear records of what was checked.
Besnik Vata, director of Bes Accountancy, a London based accounting company:
“The biggest hidden cost is delay. A paused confirmation statement or a rejected director change can hold up banking and supplier onboarding. Getting identity verification right, first time, is now part of staying deal ready.”
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Who Must Verify, Evidence, and Timing
Roles.
Directors must verify. Persons with significant control must verify. Relevant officers for relevant legal entities that are PSCs must verify. People who file on behalf of a company must verify as well. An Authorised Corporate Service Provider, for example an accountant supervised for anti money laundering, can complete verification on your behalf and must keep appropriate records.
Evidence.
Primary photo ID, for example passport or photocard driving licence, proof of address, live likeness capture where required, and consistent name and date of birth across filings. ACSPs must retain evidence for seven years according to Companies House guidance.
Timing.
New directors must verify before appointment is notified. New PSCs must verify within a short period after appointment is notified. Existing directors and PSCs must verify by their confirmation statement due date within the transition window from November 2025 to November 2026.
Verification overview by role
Figure 1:
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Hidden Costs By Structure
The rules touch every legal form, and the cost of getting it wrong shows up in different ways.
Sole traders.
If you trade on your own you do not verify with Companies House, but you can miss the benefits of incorporating at the right time. Lost limited liability, weaker lender perception, and foregone planning opportunities show up as higher borrowing costs and reduced supplier confidence. For many growing traders, a well planned move to a company with clean director and PSC records unlocks better terms with banks and marketplaces.
Limited companies.
This is where the new rules bite hardest. Hidden costs include hours spent chasing documents across multiple officers, rework after rejected filings, delays to opening PAYE or progressing capital expenditure because a director change has not been accepted, and stalled onboarding with payment providers. Choosing an ACSP route with a clear checklist is often cheaper than multiple do it yourself attempts.
Partnerships and LLPs.
Partners face joint and several liability and, where a move to a company is planned, disputes over PSC status can push up legal costs if left until the last minute. Where an LLP already exists, new members face similar verification expectations to directors and the same delays if checks are not completed in time.
Cost comparison at a glance
Figure 2:
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How BES Helps and What Is At Stake
BES Accountancy is based in London and serves clients across the United Kingdom. We act as your verification partner from start to finish. As an ACSP aligned service, we collect evidence securely, remediate mismatches, perform human review by an experienced compliance lead, and compile an audit trail that meets the Companies House standard. We offer predictable pricing including bundles for multi officer groups so there are no surprises.
Consequences of late or failed verification can include rejected filings, delays to confirmation statements, banking and marketplace stalls, HMRC setup friction, potential civil or criminal penalties, and public register annotations that damage reputation. For serious or prolonged non compliance, the register can show a negative status and strike off action can follow.
Security and privacy.
We are AML supervised, we apply least privilege access to identity data, we use encrypted storage, and we delete evidence on a defined schedule after the seven year retention period where the law requires that records be held for that time.
Besnik Vata, director of Bes Accountancy, a London based accounting company:
“Directors want speed and certainty. Our approach is simple. One checklist, one secure upload route, one named contact who chases what matters, and filings that go through without drama.”
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FAQ
When do I need to complete identity verification?
From 18 November 2025 new directors must verify at or before appointment, new PSCs have set deadlines, and existing officers must verify by the company’s confirmation statement due date during the transition period through to November 2026. Early action smooths banking and supplier onboarding.
What is an ACSP and why should I use one?
An Authorised Corporate Service Provider is a supervised professional such as an accountant that can verify your identity to the Companies House standard, keep the compliance record for seven years, and file a verification statement. Many SMEs prefer this route because it reduces rework and keeps filings moving.
Which documents are acceptable?
Expect to provide a valid passport or photocard driving licence, plus proof of address, with live likeness checks where appropriate. The goal is a clear and consistent identity record that matches filings exactly.
What happens if I do nothing?
Filings can be rejected or restricted, your public record can be annotated, onboarding with banks and providers can pause, and penalties can follow for continued non compliance. The cost of delay often exceeds the cost of getting it right early.
Can BES complete everything remotely?
Yes. BES Accountancy offers secure digital onboarding across the United Kingdom with a named contact, clear timelines, and a full audit trail. As a London based firm founded in 2020, our team supports SMEs nationally with Xero and QuickBooks expertise, bookkeeping, payroll, VAT, financial accounting, and accounts preparation for sole traders and partnerships.
About BES Accountancy
Founded in 2020, BES Accountancy is a London based firm that supports businesses of all sizes and self employed professionals across the United Kingdom. Led by Besnik Vata, a certified bookkeeper with an AAT licence, our dedicated team provides bookkeeping, payroll management, VAT returns, financial accounting, and accounts preparation for sole traders and partnerships. Our expertise in Xero and QuickBooks keeps your records accurate and available. Our core values are availability, efficiency, and trust.
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