Under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), the UK government will enforce mandatory Identity Verification (IDV) as part of its intensifying efforts to combat economic crime and corporate misconduct. This requirement, which applies to all directors, Persons with Significant Control (PSCs) and Limited Liability Partnership (LLP) members of a UK entity, will officially become effective on 18 November 2025.  

Mandatory IDV: Who Needs to Verify and When?

Starting on the commencement date, the UK’s new mandatory IDV rules will be implemented over a 12-month rollout. For newly appointed directors, PSCs or LLP members, here’s what they need to know: 

• New Directors: Must complete IDV before notifying Companies House or incorporating a new company. They cannot act until verified. 

• New PSCs: Must complete IDV within 14 days of notification.  

• New LLP Members: Must verify before their admission is notified. 

For existing role-holders, a transitional period runs until mid-November 2026.  Although there is more time to comply, delays may cause complications. It’s important to keep the following requirements in mind:  

• Existing Directors & LLP Members: Must complete IDV by the date their company or LLP files its next annual Confirmation Statement after 18 November 2025.  

• Existing PSCs (not directors): Must verify by the 14th day of their birth month after the start date. 

• Existing PSCs (also directors): Follow the same deadline as their company’s next Confirmation Statement filing.  

Upon verification, a unique personal code will be issued, which must be used for all future UK company filings and will link your verified identity to all your UK roles.  

How to Complete Identity Verification

There are two ways for individuals to complete the identity verification process:  

1. Directly with Companies House (Free): Use the GOV.UK One Login service and verify with the ID Check app using a UK passport or driving licence or go to a Post Office for an in-person check.  

2. Through an Authorised Corporate Service Provider (Paid): You may appoint an ACSP, such as an accounting or legal firm, to handle the verification on your behalf. Fees apply for this service.  

Non-compliance with Identity Verification (IDV) requirements carries serious consequences. Failure to meet the deadline is considered an offence and may result in your company’s inability to make future statutory filings at Companies House. You may also face financial penalties, and your public record can result in an “Unverified” status, potentially damaging trust with stakeholders. It’s critical to act promptly to avoid these risks and ensure smooth compliance.  

Key Takeaways 

The reforms under ECCTA aim to improve transparency, prevent fraud and strengthen the integrity of the UK’s business register. Organisations should start by identifying all individuals who need to complete Identity Verification, keeping in mind that each person’s deadline may differ and is often linked to the next Confirmation Statement. With voluntary verification already open since April 2025, starting early can avoid compliance risks and administrative delays as the November deadline approaches.  

If you want to know more about these new requirements, please feel free to contact our Bolder team so we can assist you.  

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

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