THE ECONOMIC CRIME AND CORPORATE TRANSPARENCY ACT 2023: WHAT UK COMPANY DIRECTORS NEED TO KNOW

If you’re a company director, you might have already received an email from Companies House about upcoming changes – or this may be the first you’ve heard of them. Either way, it’s important to understand how these rather stark changes could affect you.

The Economic Crime and Corporate Transparency Act 2023 introduces new rules designed to make UK companies more transparent and reduce the risk of fraud.

From 2025, identity verification will become mandatory for people running, controlling, or filing information for UK companies – even if your company is dormant and not trading.

At Sadler Advisory, we know this has caused concern for many business owners, especially as Companies House has started contacting companies directly without much explanation. So now’s a good time to break down what’s changing and help you stay compliant without the stress.

WHAT’S CHANGING UNDER THE NEW ACT?

The Economic Crime and Corporate Transparency Act 2023 brings in stricter rules to help tackle fraud and improve trust in UK businesses. The biggest change is that Identity verification will soon be compulsory for key people connected to companies.

From 2025, you’ll need to verify your identity with Companies House if you are:

• a director of a UK company

• a Person with Significant Control (PSC) – someone who owns or controls 25% or more of the company’s shares, either directly or indirectly

• filing information or making changes on behalf of a company

This applies to all companies, including dormant ones that aren’t currently trading.

For new company incorporations, verification will need to happen before the company can be registered. For existing companies, directors and PSCs will need to complete verification to stay compliant.

KEY DATES TO BE AWARE OF

The new rules are being introduced in stages, so it’s important to keep track of the timeline:

• 18 March 2025 – Registration opened for Authorised Corporate Service Providers (ACSPs).

• June 2025 – Identity verification officially opened.

• Autumn 2025 – Officially 18 November 2025 when Identity verification becomes mandatory for directors, PSCs, and anyone filing on behalf of a company.

• Spring 2026 – After 18 November 2025 - Full verification requirements come into force for all relevant individuals. It marks the start of a transition year, where all relevant individuals will have to have verified their identity prior to any further Companies House filings.
  

Even if you’re not required to act immediately, it’s worth planning ahead so you’re ready before the Autumn 2025 deadline.

WHAT ARE AUTHORISED CORPORATE SERVICE PROVIDERS (ACSPS)?

To make the identity verification process smoother, Companies House has introduced a new category of regulated professionals called Authorised Corporate Service Providers (ACSPs).

ACSPs are organisations supervised under UK anti-money laundering regulations. They are authorised to:

• Verify identities on behalf of their clients

• Confirm to Companies House that verification has been completed
  

SADLER ADVISORY IS AN AUTHORISED ACSP

Which means we can carry out these checks for you and deal directly with Companies House on your behalf. This can save you the time and hassle of verifying your identity yourself.

WHAT YOU NEED TO DO (AND HOW WE CAN HELP)

You have two options for completing your identity verification:

1. Verify your identity yourselfYou can follow the official guidance and verify yourself via your GOV.UK 1 Login, to complete verification directly with Companies House. You can also verify your identity at a UK post office if you would prefer to do it in person.

2. Let us handle it for you As an authorised ACSP, we can take care of the entire process for you and if you’re a director or shareholder of multiple companies, we expect you’ll only need to verify once across all of them.

Whichever route you choose, we’re committed to helping our clients stay fully compliant. Prior to 18 November 2025 we will be in regular contact with all of our clients to establish if their verification has been completed. Let us know whether you'd like us to do it for you.

AVOIDING SCAMS

With Companies House contacting businesses directly about these changes, there’s an increased risk of scam emails pretending to be official. Be cautious of:

• Emails asking you to click unfamiliar links or provide personal details.

• Messages that don’t come from an official .gov.uk email address.
  

If you’re not sure if a correspondence is legitimate, don’t respond – check directly on the official GOV.UK website or contact us for guidance.

NEXT STEPS – WE’RE HERE TO HELP

These changes may sound like a lot of new, complicated, extra admin, but there’s no need to stress. You still have time to prepare, and we’ll direct you through the process.

If you’d like us to handle your identity verification, or if you have any questions about how the Economic Crime and Corporate Transparency Act 2023 affects your company, get in touch with us.

We’ll make sure you stay compliant, without the stress.