The mandatory identity verification requirement for directors and PSCs is now in effect, marking the start of a 12-month transition period. Companies House estimates that 6 to 7 million individuals will need to complete identity verification by mid-November 2026. The process is linked to the annual confirmation statement filing, and failure to comply is considered an offence.
HMRC has published details of how it will enforce the new Companies House identity verification requirements, highlighting the potential consequences for directors and persons with significant control (PSCs) who fail to verify their identity by the due date.
Who must verify their identity?
- Directors;
- The equivalent of a director – this includes members, general partners and managing officers;
- A person with significant control; or
- Someone who files for a company – for example, a company secretary.
Two key steps to verification
- Completing a successful identity verification check (and getting a unique identifier called a Companies House personal code); and
- Providing an identity verification statement to Companies House to confirm an identity is verified (including supplying the personal code).
How to verify
Individuals can complete identity verification online by going to the Companies House website and clicking on “Verify your identity for Companies House” and following the instructions from there. You will need photo ID to hand. Alternative methods, such as bank or building society details or in-person verification at the Post Office, are available if photo ID is not accessible.
Once verified, individuals receive a unique Companies House personal code, which must be submitted to complete the verification process.
Personal codes should only be shared with trusted individuals who file documents on the individual’s behalf – such as an accountant – and must be stored securely. If a personal code is shared in error or compromised, Companies House can issue a new one. The replacement code will be sent by email, and the previous code will be cancelled to maintain security.
Enforcement action
If individuals fail to comply with the identity verification requirements by their due date, Companies House will take formal enforcement action. Initially, a default letter will be issued, outlining the offence and warning that further enforcement measures may follow without additional notice.
There are three main enforcement routes:
- Prosecution through the courts;
- Referral to the Insolvency Service; and
- Financial penalties.
Remain alert
With the identity verification scheme rolling out over 12 months, there is an extended window during which fraudsters may attempt to exploit the process. Directors and PSCs should remain alert, use only official channels for verification, and be wary of any unsolicited requests for personal or sensitive information.
How M+A Partners can help
For any queries on filing information with Companies House or the new identity verification requirements, please get in touch with your usual M+A Partners’ contact or email enquiries@mapartners.co.uk.