UK Companies House ID Verification Requirement 2025 in the UK | Directors & PSCs Must Comply
- MAZ
- Sep 17
- 33 min read
What the 2025 Companies House ID Verification Rule Means for You — And Why Ignoring It Could Cost You Your Directorship
Picture this: You’re sipping your morning brew, scrolling through your inbox, when you spot an email from Companies House with the subject line: “Action Required: Identity Verification Deadline Approaching.” Your stomach drops. You’ve heard whispers about this new rule, but you thought it was just red tape — something “they’ll sort out later.” Spoiler: They won’t. And if you’re a director or a person with significant control (PSC) of a UK company, this isn’t optional. It’s mandatory. And the clock’s ticking.
As of April 2025, under the Economic Crime and Corporate Transparency Act 2023, every director, PSC, and even new company incorporators must complete identity verification with Companies House. No exceptions. No “I’ll do it next week.” Miss the deadline, and you risk being struck off as a director — or worse, your company could be dissolved. I’ve already had three clients in Leeds and Bristol come to me in a panic this year because they ignored the early notices. One nearly lost his entire limited company over a £20 verification fee and a 15-minute online process. Don’t be that person.
Why This Rule Exists — And Why It’s Not Going Away
Let’s be clear: this isn’t HMRC. This isn’t about tax (yet). This is about economic crime prevention. The UK government is cracking down on shell companies, fraudulent director appointments, and money laundering loopholes. According to the National Crime Agency, over 4,000 UK companies were flagged for suspicious activity in 2023 alone — many registered with fake or unverified directors. The new ID verification system is designed to slam that door shut.
Under the new regime, you can’t even form a new company unless you — and every other director or PSC — are verified first. Existing directors have until 5 April 2026 to comply, but Companies House is rolling out invites in phases. If you haven’t received yours yet, you will. And when you do, treat it like a tax return deadline: non-negotiable.
Who Exactly Needs to Verify? (Spoiler: Probably You)
You might think, “I’m just a small business owner — this won’t affect me.” Think again. The rules cast a wide net:
All current directors of UK-registered companies (including LLPs and SEs)
All PSCs — that’s anyone with over 25% of shares or voting rights, or significant influence over the company
New directors appointed after 4 March 2024
Anyone forming a new company — verification must be completed before incorporation
Corporate directors — yes, even if your director is another company, the natural person behind it must verify
Confused about whether you’re a PSC? Here’s a quick litmus test: Do you hold more than 25% of the shares? Can you appoint or remove a majority of the board? Do you have the right to exercise, or actually exercise, significant influence or control? If you nodded to any of those — you’re in scope.
I had a client in Newcastle — let’s call her Sarah — who thought she was “just helping out” her brother’s limited company by being listed as a director. She hadn’t touched the business in three years. Still got the email. Still had to verify. Still nearly missed the deadline because she assumed it didn’t apply to her. Don’t make Sarah’s mistake.
How Verification Actually Works — Step by Step (No Jargon, Promise)
Right, let’s cut through the noise. Here’s exactly how you get verified — and it’s simpler than renewing your passport.
Step 1: Wait for Your Invite
Companies House is sending out invites in tranches. You’ll get an email or letter with a unique verification code and a link to start the process. Do not ignore this. If you’re worried you’ve missed it, you can proactively check your status via the Companies House service portal — but you can’t start verification without that code.
Step 2: Choose Your Verification Route
You’ve got two options:
Option A: Verify via Companies House Service (Recommended)You’ll need: A smartphone with a cameraA valid UK or international passport, or a UK photocard driving licenceFive minutes of quiet time
You’ll upload a photo of your ID, take a live selfie, and the system uses facial recognition to match you up. It’s the same tech banks use for onboarding — quick, secure, and surprisingly accurate.
Option B: Verify via an Authorised Corporate Service Provider (ACSP)If you don’t have the right ID, or you’re overseas, or you just hate tech, you can go through a certified agent — like your accountant, solicitor, or company formation agent. They’ll physically check your ID and submit the verification on your behalf. There’s usually a small fee (£15–£50), but it’s worth it if you’re stuck.
Step 3: Get Your Verification Code
Once verified, you’ll receive a unique Companies House Identity Verification Code. Keep this safe — you’ll need it for future filings, director appointments, or if you form another company.
Step 4: Done. Seriously.
That’s it. No forms. No postal delays. No chasing references. The whole thing takes less time than ordering a takeaway.
What Happens If You Don’t Bother? (Spoiler: It’s Ugly)
None of us loves bureaucracy, but ignoring this one is like ignoring a parking ticket until your car gets clamped. Here’s what’s at stake:
You’ll be flagged as “unverified” in the public register — which looks terrible to banks, suppliers, and potential investors
You won’t be able to file anything — annual accounts, confirmation statements, director changes — until you’re verified
After 14 days of non-compliance, Companies House can issue a “restriction notice” — meaning you can’t act as a director
After 14 more days, you’ll be automatically removed as a director — and if no other verified directors remain, your company could be struck off the register and dissolved
Yes, dissolved. As in, poof — your company ceases to legally exist. Contracts voided. Bank accounts frozen. Assets potentially forfeited. All because you didn’t spend 10 minutes clicking through a selfie check.
I had a client — David, runs a small plumbing firm in Cardiff — who put it off because “it looked like phishing.” By the time he came to me, he’d already been restricted. Took three weeks, two statutory declarations, and a £120 late filing penalty to fix it. All avoidable.
Common Pitfalls (And How to Dodge Them)
Even simple processes can trip people up. Here are the mistakes I’ve seen most often in practice:
Mistake #1: “I’ll do it later.” The system doesn’t send daily reminders. The deadline won’t move. Treat the invite like a court summons.
Mistake #2: Using an expired ID.Your passport expired in 2023? Doesn’t matter if it’s still in your drawer. The system won’t accept it. Renew it first, or use your driving licence.
Mistake #3: Poor lighting or blurry selfies.Yes, really. The AI needs to see your face clearly. Do it in daylight, against a plain wall, no hats or sunglasses. I’ve had clients fail three times because they tried to do it in a dark pub. (True story. Glasgow. Need I say more?)
Mistake #4: Assuming your accountant did it for you. Unless you’ve explicitly instructed them — and paid them — to act as your ACSP, they haven’t. This isn’t part of standard compliance work. Ask. Don’t assume.
Mistake #5: Thinking “I’m not active, so I’m exempt.” Doesn’t matter if your company hasn’t traded since 2019. If you’re still listed as a director or PSC, you’re in scope. Period.
Special Cases: Overseas Directors, Trusts, and Complex Structures
If your situation’s a bit more… spicy — you’re not forgotten. Here’s how the rules apply:
Overseas Directors: You can still verify using an international passport. If you don’t have a smartphone or reliable internet, go the ACSP route. Some global accounting networks (like the ones we partner with) offer remote verification services via video call.
Trusts and Nominees: If a trust holds shares, the individual trustees must verify — not the trust itself. Same for nominee shareholders: the beneficial owner behind the nominee must be verified.
Corporate Directors Since October 2024, corporate directors are only allowed if they’re themselves a UK-registered company with all their own directors verified. And yes — that means tracing up the chain until you hit a real, live human. It’s bureaucracy, but it’s watertight.
Deceased Directors or PSCs: Their estate must notify Companies House and remove them from the register. Verification isn’t required posthumously — but the company must still have at least one verified living director to remain compliant.
Timeline and Deadlines: Mark These in Your Diary
Here’s the official rollout schedule — straight from Companies House guidance updated in July 2025:
New company incorporators | Already in effect (since March 2024) | Must verify BEFORE incorporation |
New directors (appointed after March 2024) | Immediately upon appointment | Within 14 days of appointment |
Existing directors & PSCs | Rolling invites from Q3 2024 | 5 April 2026 |
Corporate directors | Must ensure underlying individuals verified | Same as above |
Pro tip: Even if your deadline is 2026, do it as soon as you get the invite. Why? Because Companies House systems get clogged near deadlines (remember Self Assessment in January?), and delays now could mean penalties later.
Costs, Fees, and Hidden Charges (Spoiler: It’s Mostly Free)
Good news: verifying directly through Companies House costs nothing. Zero. Nada. No fee.
If you go via an ACSP, expect to pay between £15 and £50 — depending on how fancy their service is. Some accountants bundle it into annual compliance packages. Others charge separately. Always ask upfront.
Watch out for third-party “verification services” popping up online — some are scams. Only use:
The official Companies House service (via your invite link)
A verified ACSP listed on the Companies House register
Your own trusted accountant or solicitor
No one from Companies House will ever call you demanding payment over the phone. If they do — hang up. It’s a scam.
What This Means for Your Business Beyond Compliance
This isn’t just a box-ticking exercise. Verification has ripple effects:
Banking & Finance: Many UK banks now check Companies House verification status before approving loans or opening business accounts. Unverified? Application declined.
Tendering & Contracts: Public sector contracts increasingly require proof of director verification. Miss this, and you’re out of the running.
Investor Confidence: Smart investors check the register. Seeing “unverified” next to a director’s name raises red flags — even if it’s just an admin delay.
Fraud Prevention: Already seen two cases this year where fraudsters tried to appoint themselves as directors of dormant companies. Verification blocked them cold. That’s your asset protection right there.
Real-World Case Study: The Café Owner Who Almost Lost Everything
Let me tell you about Amina. Runs a lovely little café in Brighton. Incorporated her business in 2020. Did everything right — VAT, payroll, bookkeeping. But when the verification invite landed in her junk folder in January 2025, she missed it.
By April, her confirmation statement was rejected. Then her bank froze her business account “pending director verification.” Then her coffee supplier suspended her credit terms.
She came to me in tears. We got her verified within 24 hours — she used her driving licence, passed on the first try. But untangling the banking mess took three weeks. She lost two catering contracts in the meantime.
Total cost of delay: £8,200 in lost revenue, plus £350 in professional fees to fix it.
All because she didn’t check her spam folder.
Your Immediate Action Plan (Do This Today)
Don’t wait. Don’t “get around to it.” Here’s your to-do list — right now:
Search your email (including spam) for “Companies House Identity Verification”
Log into your Companies House account and check your dashboard for alerts
If you’ve received an invite — do the verification TODAY
If you haven’t — set a monthly reminder to check until you do
Talk to your co-directors or PSCs — make sure they’re on it too
Update your company’s registered office email — so future invites don’t get lost
Bookmark the official guidance: www.gov.uk/verify-your-identity-for-companies-house
Still Unsure? Here’s Who to Ask
Your accountant (if they’re registered as an ACSP)
Companies House directly — 0303 1234 567 (Mon-Fri, 8:30am–5pm)
The Institute of Chartered Accountants in England and Wales (ICAEW) has a free advisory helpline for small businesses: www.icaew.com/support
Citizens Advice also offers guidance on corporate compliance: www.citizensadvice.org.uk
Before We Move On
This isn’t red tape. This is armor. Armor for your business, your reputation, and your peace of mind. The UK is closing loopholes that fraudsters have exploited for years — and that’s a good thing. But it only works if you play your part.
How Companies House Verification Links to Your Tax Position — And Why HMRC Is Watching Closer Than Ever
None of us loves tax surprises, but here’s how to avoid them: understand that Companies House ID verification isn’t just a corporate formality — it’s now a critical trigger point for HMRC’s compliance radar. Since April 2025, HMRC and Companies House have been sharing verified director and PSC data in near real-time. That means if you’re unverified, or if your details don’t match across both systems, you’re not just risking a Companies House penalty — you’re waving a red flag at HMRC’s Connect system, their AI-powered tax risk engine.
I’ve already seen three cases this year where clients received “nudge letters” from HMRC within 48 hours of being flagged as unverified at Companies House. One — a freelance graphic designer in Birmingham operating through a limited company — got hit with an enquiry into her 2023/24 Self Assessment because her director status was “unconfirmed.” She’d done nothing wrong tax-wise. But the mismatch triggered an automated review. Took three months and £1,200 in accountant fees to clear. All preventable.
Why HMRC Cares About Your Companies House Status (Even If You’re Not a Tax Avoider)
Let’s be blunt: HMRC doesn’t care whether you verified your identity to fight economic crime. They care because verified data = accurate data = easier tax enforcement.
Before 2025, it was shockingly easy to hide behind unverified directorships. Fake names. Shell companies. Nominee arrangements with no paper trail. HMRC estimates that £3.7 billion in tax was lost annually through disguised ownership structures — many involving unverified directors.
Now? Every verified director and PSC is cross-referenced against:
PAYE records
Self Assessment filings
VAT registrations
Trust and estate disclosures
Property transaction records (via Land Registry)
If your name pops up as a director at Companies House but you’ve never declared director’s remuneration on your tax return? That’s a mismatch. If you’re listed as a PSC with 50% ownership but your Self Assessment shows no dividend income? Another red flag. If your registered address is a terraced house in Manchester but your tax return claims “non-resident” status? You’re practically inviting an enquiry.
Think of verification as HMRC’s new “truth serum.” Once you’re in the system, inconsistencies become glaring.
The Tax Triggers: What HMRC Looks For Post-Verification
Once you’re verified, HMRC’s algorithms start connecting dots. Here’s what they’re scanning for — and what you need to double-check right now:
Mismatched Income Declarations: You’re a director — so where’s your salary? Where are your dividends? If your company filed accounts showing £80,000 in profit, but your personal tax return shows £12,570 in income (just the personal allowance), that’s a flashing alert. I’ve had clients who “forgot” to declare dividends because they thought “it’s my own company, so it doesn’t count.” Wrong. Painfully wrong.
PSCs Not Reporting Dividends or Capital Gains: If you’re a person with significant control, HMRC expects to see either dividend income (if the company distributes profits) or evidence of capital gains (if you sold shares). No income reported? They’ll assume you’re extracting value informally — loans, expenses, assets — and come knocking.
Multiple Directorships with Inconsistent Filings: Got three companies? HMRC will compare your filings across all of them. One shows £100k salary, another shows £0, the third shows £200k in dividends? They’ll want to know why — and whether you’re diverting income to exploit lower tax bands.
Address Discrepancies: Companies House says you live in Edinburgh. HMRC says your tax code is assigned to a Cornwall address. That’s not just admin — it could trigger residency checks, especially if you’re claiming Scottish tax rates or non-dom status.
Gaps in National Insurance Records: Verified as a director since 2021 but no Class 1 or Class 2 NI contributions? HMRC will assume you’re paying yourself below the Lower Earnings Limit (£6,396 in 2025/26) to avoid NI — and may challenge whether your salary is “commercially justifiable.”
Real-World Case Study: The “Invisible” Director Who Got Slapped with a £42,000 Bill
Meet Raj. Runs a small IT consultancy in Slough. Incorporated in 2022. Paid himself a £9,100 salary (below NI threshold) and took the rest as dividends. Filed everything on time. Thought he was golden.
But Raj never updated his director details when he moved from Leicester to Slough in 2023. Companies House still listed his old address. When he finally verified in March 2025, HMRC’s system spotted the address mismatch — and cross-referenced it with his dividend declarations.
Turns out, Raj had taken £110,000 in dividends over two years but hadn’t paid the High Income Child Benefit Charge (HICBC) because he “didn’t realise dividends count as income for HICBC.” His wife was claiming child benefit for their two kids. Cue a £42,000 back-tax demand, plus 5% late payment penalties.
Raj’s mistake? He treated Companies House as a separate silo. Big error. Post-2025, everything is connected.
What You Must Reconcile Before You Verify (Or Immediately After)
Don’t just click “verify” and walk away. Use this moment as a compliance health check. Here’s your reconciliation checklist:
✅ Director’s Salary: Is it declared in your PAYE or Self Assessment? Is it at least at the Lower Earnings Limit (£6,396 in 2025/26) to protect your state pension?
✅ Dividends: Are they recorded in your personal tax return? Do they match the company’s dividend vouchers? Are they within your available profits (not just cash in the bank)?
✅ Benefits in Kind: Company car? Private medical? Interest-free loans? These must be reported on a P11D — and you must pay tax on them. I’ve seen directors forget a £3,000 health insurance policy — triggering a £1,200 tax bill plus penalties.
✅ PSC Shareholdings: If you own shares, are you reporting dividend income? If you sold shares, did you file a Capital Gains Tax return? Even if you reinvested the proceeds, CGT may still be due.
✅ Multiple Roles: Director + employee elsewhere? Make sure your tax codes are correct. I had a client in Plymouth who was taxed at 40% on her PAYE job because her directorship pushed her over the threshold — but she didn’t adjust her tax code. Overpaid £5,300. Took six months to reclaim.
✅ Scottish/Welsh Tax Variations: Live in Scotland? Your dividend tax rates are different. Basic rate: 19% (not 20%), Higher rate: 43% (not 33.75%), Top rate: 48% (not 39.35%). Get this wrong, and you’ll underpay — then get hit with interest and penalties later.
The Hidden Link: Verification and Your Personal Tax Account
Here’s something most blogs won’t tell you: once you’re verified at Companies House, your Personal Tax Account (PTA) auto-populates with director and PSC flags. Log in right now — go to www.gov.uk/personal-tax-account — and check under “Your Profile.” You should see:
“Director of [Company Name]”
“Person with Significant Control in [Company Name]”
“Company registration number: [XXXXXXX]”
If those aren’t there — or if they’re wrong — HMRC’s records are out of sync. That’s dangerous. Fix it immediately by:
Updating your PTA profile manually (under “Tell HMRC about a change”)
Calling HMRC’s helpline (0300 200 3300) to force a data sync
Sending a written notice if the discrepancy involves shareholdings or PSC status
Why bother? Because if HMRC’s system doesn’t know you’re a director, it won’t pre-populate your dividend or salary data correctly. You’ll end up under-declaring — and that’s how enquiries start.
How Verification Affects Your Tax Code (And How to Fix It)
Your tax code isn’t just about your day job anymore. If you’re a director, HMRC now factors in:
Your expected director’s salary
Your expected dividends
Any benefits in kind
Your PSC status (if it implies additional income)
If your tax code looks wrong — say, it’s still 1257L when you’re taking £60k in dividends — that’s because HMRC hasn’t updated it post-verification. Don’t wait for them. Fix it yourself:
Step 1: Log into your Personal Tax Account: Go to “Check your Income Tax estimate and tax code”
Step 2: Click “Tell HMRC about changes”: Update your expected income from dividends, directorships, and benefits
Step 3: Request a revised tax code: HMRC will usually issue a new code (like K497 or BR) within 72 hours
Step 4: Give the new code to your PAYE employer: Otherwise, you’ll keep overpaying or underpaying tax
I had a client — Fiona, a part-time teacher and director of a family property company — stuck on 1257L all year. She took £45k in dividends but didn’t update her code. Result? £9,800 overpaid in emergency tax. Took four months to get it back. All because she assumed “HMRC would sort it.”
The Scottish and Welsh Wildcards (Don’t Get Caught Out)
Live in Edinburgh or Cardiff? Your tax position just got more complex.
Scotland: Dividend tax rates are higher at every band: Basic rate: 19% (vs 20% rest of UK — yes, oddly lower, but only on dividends)Higher rate: 43% (vs 33.75%)Top rate: 48% (vs 39.35%)
Wales: Income tax rates are the same as England — but the Welsh Revenue Authority (WRA) now receives Companies House verification data too. If you’re a Welsh resident and a director, expect WRA letters if your Welsh income doesn’t match your director status.
Crucially: your residency determines your rates — not your company’s registered office. I had a director in Swansea whose company was registered in London. He paid himself dividends at English rates. WRA caught it. £7,400 bill plus 3% interest. Ouch.
What If You’ve Already Been Flagged? Damage Control Steps
Already got a nudge letter? Don’t panic. Here’s your action plan:
Step 1: Don’t ignore it: HMRC gives you 30 days to respond. Miss that, and it escalates to a formal enquiry.
Step 2: Check exactly what’s mismatched: Is it income? Address? Director status? PSC percentage? Pinpoint the gap.
Step 3: Gather evidence: Payslips, dividend vouchers, bank statements, board minutes, P11Ds — whatever proves your position.
Step 4: Write a clear, factual response: No excuses. Just facts. “On [date], I verified as director. My salary is £X, declared via PAYE. My dividends are £Y, declared via SA100. My address changed on [date] — see utility bill attached.”
Step 5: Submit via your Personal Tax Account: Creates a digital audit trail. Don’t post it. Don’t call. Upload it.
Step 6: Follow up in 14 days: If you haven’t heard back, call HMRC’s compliance line (0300 059 3053) and quote your case reference.
Pro tip: If the mismatch is due to an HMRC system error (e.g., they didn’t sync your verification), demand they note “no careless error” on your file. Protects you from future penalties.
The Contractor Trap: IR35, Verification, and the Double Whammy
If you’re a contractor operating through a limited company, listen closely. Verification just made IR35 compliance even riskier.
Here’s why: Once you’re verified as a director, HMRC’s IR35 review teams get automatic alerts if:
Your company’s turnover is high (£100k+) but your salary is low (£9k)
You’re the only director and employee
Your contracts haven’t been reviewed for IR35 status in the last 12 months
I’ve had two clients this year — both IT contractors — get simultaneous IR35 reviews and director compliance checks because their verification triggered both systems. One ended up owing £68,000 in back taxes, NI, and penalties because his “outside IR35” contract was deemed a sham.
Your defence? Three things:
A current, signed IR35 status determination from your end-client (or a robust independent review if you’re in the private sector)
A “commercial” salary — at least £12,570 in 2025/26 — paid via PAYE with RTI filings
Clean, auditable dividend records — with board minutes and vouchers for every payment
Verification doesn’t cause IR35 issues — but it exposes them.
Landlords, Side Hustles, and the “Hidden Director” Problem
Got a limited company for your buy-to-let portfolio? Or your Etsy shop? Or your freelance writing? You’re not exempt.
HMRC’s property and trading teams now cross-reference Companies House data. If you’re verified as a director of “ABC Property Ltd” but your Self Assessment shows no property income? They’ll assume you’re laundering rental profits through the company — and come after you for undeclared income, plus penalties for “deliberate concealment.”
Same for side hustles. I had a client — Emma, a primary school teacher — who ran a small jewellery business via a limited company. Took £18k in dividends over two years but never declared it because “it’s just a hobby.” HMRC spotted her directorship post-verification. £5,200 tax bill. 15% penalty. And a permanent flag on her file.
Lesson: If you’re verified as a director, everything you do through that company is now visible. Declare it. All of it.
Your Post-Verification Tax Health Check (Do This Now)
Grab a cuppa and your latest tax return. Then run through this checklist:
🔹 Log into your Personal Tax Account — do your director/PSC flags match reality?
🔹 Check your tax code — does it reflect your total income (salary + dividends + benefits)?🔹 Review your dividend declarations — do they match your company’s dividend register?🔹 Verify your address — is it identical across Companies House, HMRC, and your bank?🔹 Scan for Scottish/Welsh residency flags — are you paying the right rates?
🔹 Confirm your National Insurance record — are you protecting your state pension?
🔹 Update your accountant — have they got your latest verification code and status?
Spend 30 minutes on this now, and you’ll save yourself months of stress later.
What’s Next? Turning Compliance Into Competitive Advantage
Here’s the silver lining: once you’re verified and reconciled, you’re cleaner, safer, and more credible than 60% of your competitors who are still dragging their feet.
Banks? They’ll fast-track your loan applications.Investors? They’ll trust your governance.Clients? They’ll see you as stable and transparent.HMRC? They’ll leave you alone — because you’re no longer a “risk.”
UK Companies House Registration Statistics
Step-by-Step Guide to Getting Verified — Whether You DIY or Use an Accountant (Plus How to Fix Mistakes and Stay Compliant Forever)
So, the big question on your mind might be: “Alright, I get it — I need to verify. But how exactly do I do it without stuffing it up?” Whether you’re the type who loves ticking boxes yourself or you’d rather hand it to a pro (and frankly, after 18 years in the trenches, I don’t blame you), I’m going to walk you through both routes — step by step, screen by screen, no jargon, no fluff. And yes, I’ll even show you how to do it through a firm like Total Tax Accountant or any other authorised UK practice. Because sometimes, paying £30 to avoid three hours of stress is the smartest tax decision you’ll make all year.
Option 1: Verifying Yourself via the Companies House Online Service (The DIY Route)
Let’s say you’re tech-savvy, you’ve got 15 minutes, and you quite fancy getting this done over your lunch break. Brilliant. Here’s exactly how to do it — and I mean exactly. Follow these steps, and you’ll be verified before your sandwich gets cold.
Step 1: Find Your Invite (Don’t Skip This): You can’t start without it. Companies House will have sent you either:
An email (check spam, promotions, and archived folders)
A letter to your registered office or home address (if no email is on file)
Inside, you’ll find:
A unique verification link
A reference number
A deadline (usually 14 days from receipt)
Pro tip: If you’ve lost it, don’t panic. Log into your Companies House account at www.gov.uk/companies-house → “Manage your company” → “Your dashboard”. If you’re due to verify, there’ll be a red alert banner with a “Start now” button.
Step 2: Click the Link and Log In (Or Create an Account): If you already have a Companies House account (most directors do), log in with your email and password.If not, you’ll need to create one — it takes 2 minutes. Use the same email as your director correspondence.
Step 3: Choose Your ID Document: You’ll be asked to upload one of the following:
A valid UK or international passport (photo page)
A valid UK photocard driving licence (front and back)
Be warned: Expired documents won’t work. Even if it expired last week. Renew it first, or use the other option.
Step 4: Take a Photo of Your ID: Use your smartphone. Make sure:
The image is clear, well-lit, and in focus
All four corners of the document are visible
No fingers, glare, or shadows are covering text
The system will auto-crop and scan it. If it fails, you’ll get a reason (“text unreadable”, “expired document”, etc.). Fix it and retry.
Step 5: Take a Live Selfie: Yes, really. The system will ask you to:
Hold your phone at eye level
Face a well-lit area (no backlighting)
Remove hats, sunglasses, or face coverings
Keep a neutral expression (no smiling — it confuses the AI)
You’ll record a 3-second video or take a live photo. The system matches your face to your ID photo. I’ve seen clients fail because they tried it in a dark car park. Do it indoors. Near a window. Alone. (No, your dog doesn’t count as a witness.)
Step 6: Confirm Your Details: You’ll see your name, date of birth, and nationality pulled from your ID. Check them. If they’re wrong (e.g., typo in your passport), you can’t proceed. You’ll need to contact Companies House or use an ACSP (see Option 2).
Step 7: Submit and Wait (Usually Instant): Hit “Submit”. In 95% of cases, you’ll get a green tick and a verification code within 60 seconds. Save this code — screenshot it, email it to yourself, write it down. You’ll need it for future filings.
Step 8: Check Your Status: Go back to your Companies House dashboard. Under “Your profile”, it should now say:✅ “Identity verified”✅ “Verification code: [XXXX-XXXX-XXXX]”
Done. Seriously. Go treat yourself to a biscuit.
What If the DIY Route Fails? Common Fixes
Even the smoothest systems hiccup. Here’s how to troubleshoot:
“Document not recognised”: Try a different ID (e.g., switch from passport to driving licence). If neither works, go to Option 2 (ACSP route).
“Selfie doesn’t match ID”: Retake in better light. Remove glasses if possible. Use a plain background. Still failing? Try a different device — some older phones don’t support the video capture.
“Name mismatch”: If your ID says “Jonathan Smith” but Companies House has “Jon Smith”, you’ll need to update your director details first via “File for your company” → “Change director’s details”. Takes 24 hours to process — then retry verification.
“System error” or “Timeout”: Clear your browser cache. Try Chrome or Edge (Safari sometimes glitches). Still stuck? Call Companies House on 0303 1234 567 — they can reset your session.
Option 2: Verifying Through an Authorised Accountant (Like Total Tax Accountant)
Now, let’s say you’re overseas, your passport’s expired, you hate selfies, or you just want someone else to handle the admin. Totally valid. That’s what Authorised Corporate Service Providers (ACSPs) are for — and yes, reputable UK accountancy firms like Total Tax Accountant, Saffrey Champness, or even your local chartered practice are almost certainly registered ACSPs.
Here’s how it works — step by step:
Step 1: Confirm Your Accountant Is an ACSP: Not all accountants are authorised. Ask them: “Are you registered with Companies House as an ACSP?” They should be able to give you their ACSP registration number (starts with “ACSP-XXXXXX”).
Can’t find out? Check the official register: www.gov.uk/check-acsp-register
Step 2: Give Them Permission (In Writing): You’ll need to sign a simple authority form — usually emailed as a PDF. It states:
You authorise them to verify your identity on your behalf
You confirm the ID documents you’re providing are genuine
You understand they’ll submit your data to Companies House
Keep a copy. Always.
Step 3: Provide Certified ID Documents: Your accountant will ask for:
A certified copy of your passport or driving licence (certified by a solicitor, bank manager, or post office)
A proof of address (utility bill, bank statement — less than 3 months old)
Sometimes, a signed selfie holding your ID (yes, even through an ACSP — it’s for their records)
Don’t send originals. Certified copies only.
Step 4: Your Accountant Submits Electronically: They log into their ACSP portal, upload your docs, complete their due diligence (they’re legally required to verify your ID physically or via video call), and submit. Takes them 10–15 minutes.
Step 5: You Receive Your Verification Code: Within 24–48 hours, your accountant will email you:
Your Companies House verification code
A confirmation of completion
A copy of the submission receipt (keep this for your records)
Cost? Usually £25–£50 + VAT. Worth every penny if you’re time-poor or overseas.
Step 6: Check Your Companies House Dashboard: Log in. Confirm it now shows “Identity verified”. If not, chase your accountant — sometimes submissions get stuck in processing.
Why Use an Accountant? Three Real Client Scenarios
Case 1: Maria in Malaga: Maria runs a UK Ltd company but lives in Spain. No UK SIM, shaky Wi-Fi, expired passport. Her accountant (yes, Total Tax Accountant — real client, name changed) verified her via Zoom — she held up her new Spanish passport, they recorded the call, submitted, done. Cost: £45. Stress saved: priceless.
Case 2: Tom with the Typo: Tom’s director name was registered as “Thom” (clerical error from 2018). DIY verification failed. His accountant submitted a “name correction + verification” bundle — fixed the record and verified him in one go. Took 3 days. DIY would’ve taken weeks.
Case 3: The Trustee Trap: A client was a trustee of a family trust that owned 30% of a company — making her a PSC. She didn’t realise she needed to verify. Her accountant spotted it during annual compliance, got her verified before Companies House even sent the invite. No penalties. No panic.
What If You’ve Been Removed? How to Get Reinstated (Fast)
Already missed the deadline? Got a letter saying you’ve been struck off as a director? Don’t despair. You can fix this — but you need to move fast.
Step 1: Verify Immediately (Same as Above): Whether DIY or via ACSP — get verified today. The system won’t reinstate you until you’re verified.
Step 2: File a Section 1046 Application: This is the official “apply for restoration as a director” form. You can file it online via Companies House:www.gov.uk/reapply-to-be-company-director
You’ll need:
Your new verification code
A £150 fee (card payment)
A brief explanation (e.g., “Delay due to overseas travel — now verified”)
Step 3: Wait 5–7 Working Days: Companies House reviews manually. If your verification is confirmed, you’ll be reinstated automatically.
Step 4: Check Your Company’s Status: If you were the last director, your company may have been “struck off”. If so, you’ll need to apply for administrative restoration — a separate £100 form + £395 fee. Act within 6 years.
Pro tip: If the removal caused financial loss (e.g., frozen bank account), mention it in your application. Companies House sometimes waives fees for demonstrable hardship.
How to Handle HMRC Disputes Triggered by Verification
Already got a nastygram from HMRC because your verification exposed a mismatch? Here’s how to respond — professionally, factually, and successfully.
Script 1: “I’ve Now Verified — Please Update Your Records”:Use this if HMRC doesn’t know you’re verified yet.
Subject: Urgent: Director Verification Completed — Ref [Your UTN]Dear HMRC,I confirm I completed Companies House identity verification on [date]. My verification code is [XXXX-XXXX-XXXX].Please update your records to reflect my director status for [Company Name, Co. No. XXXXXX].I have attached: Screenshot of my Companies House “verified” statusCopy of my verification completion emailKindly confirm once updated.Yours faithfully,[Your Name][Your Address][Your National Insurance Number]
Script 2: “The Mismatch Was an Error — Here’s the Correction”Use this if you under-declared income or benefits.
Subject: Correction to 2024/25 Tax Return — Director Income Omission — Ref [UTN]Dear HMRC,Following my Companies House verification, I identified an omission in my 2024/25 Self Assessment: I failed to declare £X in dividends from [Company Name].I have now amended my return via my Personal Tax Account (submission ref: XXXXXX).I enclose: Revised SA100 pagesDividend vouchers for 2024/25Board minutes authorising dividendsI apologise for the oversight and confirm it was not deliberate.Please confirm receipt and adjust my tax liability accordingly.Yours faithfully,[Your Name]
Script 3: “I Dispute Your Assessment — Here’s Why”: Use this if HMRC’s figures are wrong.
Subject: Formal Dispute — Incorrect Income Attribution — Ref [UTN]Dear HMRC,I dispute your assessment of £X additional tax due. Your letter assumes I received £Y in director’s remuneration, but I received only £Z.Evidence enclosed: 2024/25 payslips (showing £Z salary)RTI submissions from my company (confirming £Z reported)Company accounts (showing profit available for dividends was £A, not £B)I request you withdraw the assessment and recalculate based on actual figures.I am available to discuss on [phone number].Yours faithfully,[Your Name]
Send all disputes via your Personal Tax Account — creates a timestamped record. Keep copies. Follow up in 14 days if no response.
Long-Term Compliance: Your Annual Verification Health Check
Don’t just verify and forget. Make this part of your annual business health check — like renewing your insurance or servicing your boiler.
Every April, do this:
✅ Log into Companies House — confirm “verified” status still shows
✅ Check your verification code is saved in your company records
✅ Log into your Personal Tax Account — confirm director/PSC flags are correct
✅ Reconcile your director’s salary, dividends, and benefits against your tax return
✅ Update your address or name with both Companies House and HMRC if changed
✅ Ask your accountant to run a “verification + tax alignment” check (takes them 10 mins)
Set a recurring calendar invite. Call it “Director MOT”. Treat it like tax return season — non-negotiable.
Summary of Key Points: Your 10-Point Compliance Cheat Sheet
All UK company directors and PSCs must verify by 5 April 2026 — no exceptions, or risk removal and company dissolution.Start now — even if your deadline is months away — to avoid system delays.
Verification is free if you DIY via Companies House — you need a smartphone, passport or driving licence, and 10 minutes.Use good lighting, plain background, and double-check document expiry dates.
You can use an authorised accountant (ACSP) if DIY fails or you’re overseas — cost is typically £25–£50, and they handle document certification and submission.Confirm they’re on the ACSP register before paying.
Once verified, HMRC cross-checks your data immediately — mismatches in salary, dividends, address, or PSC status trigger automated tax enquiries.Reconcile your tax return with your company’s accounts before or immediately after verifying.
Scottish and Welsh residents face different tax rates — Scottish dividend rates are higher; Welsh residents must ensure WRA records match Companies House.Update your Personal Tax Account with your correct residency — don’t rely on your company’s registered office address.
Your Personal Tax Account must reflect your director/PSC status — if it doesn’t, update it manually under “Tell HMRC about a change” to avoid under-declaration.Log in now and check — it takes 90 seconds.
Tax codes often become inaccurate post-verification — if you’re taking dividends or benefits, request a revised code via your Personal Tax Account to avoid emergency tax.Give the new code to your PAYE employer within 7 days.
If removed as a director, apply for reinstatement via Section 1046 — £150 fee, 5–7 day turnaround, but act fast to avoid company dissolution.If your company was struck off, file for administrative restoration within 6 years (£395 + £100).
Respond to HMRC “nudge letters” within 30 days — use factual, evidence-based scripts (provided above) to correct mismatches or dispute assessments.Always upload responses via your Personal Tax Account — never post or call unless instructed.
Make verification part of your annual compliance routine — every April, check your status, reconcile income, update addresses, and review with your accountant.Set a calendar reminder called “Director MOT” — your future self will thank you.
I’ve watched clients lose contracts, freeze bank accounts, and even dissolve companies because they treated this as “just another government form.” Don’t be them.
Verification isn’t bureaucracy. It’s your licence to operate in the modern UK economy. It’s what keeps fraudsters out, investors in, and HMRC off your back. Done right, it’s a 10-minute task that buys you years of peace of mind.
So go on. Pick your route — DIY or accountant. Block out 15 minutes. Get it done. Then come back here, re-read your 10-point cheat sheet, and sleep easy knowing your business is buttoned up tighter than a Savile Row suit.
FAQs
Q1: What happens if a director doesn’t have a passport or UK driving licence to verify?
A1: Well, it’s worth noting that Companies House accepts only those two ID types for DIY verification — no exceptions. In my experience with clients, the key is switching to an Authorised Corporate Service Provider (ACSP). They can verify you using alternative documents like a biometric residence permit, an EEA national ID card, or even certified copies verified via video call. One client in Glasgow used her expired Polish ID card — her accountant certified it via Zoom, and Companies House accepted it. Don’t panic — just find a registered ACSP.
Q2: Can a corporate director verify through its own company, or must a human do it?
A2: Ah, this trips up so many business owners. Even if your director is another UK company, a real human behind that corporate director must verify individually. Think of it like peeling an onion — you keep going until you hit flesh and blood. I’ve had clients try to loop their holding company as director — only to be rejected. The law’s watertight: every layer must trace back to a verified natural person. No shortcuts.
Q3: If someone is both a director and a PSC, do they need to verify twice?
A3: Nope — one verification covers all your hats. Whether you’re listed as director, PSC, or both, Companies House only needs you to verify once. I’ve seen nervous clients log in twice, upload twice, selfie twice — totally unnecessary. Your verification code is linked to you, not your role. One code to rule them all. Keep it safe — you’ll use it for future appointments too.
Q4: How long does the DIY verification process actually take from start to finish?
A4: In my 15 years of guiding clients through this, the average is 8–12 minutes — if you’ve got your documents ready and decent lighting. One bloke in Bristol did it during his tea break — 7 minutes, first try. But add buffer time: if your ID’s blurry or your selfie’s shadowy, retries can stretch it to 30. Pro tip: Do it mid-morning, near a window, phone fully charged. Treat it like a passport photo — no grins, no hats.
Q5: Can an accountant verify a director without their physical presence?
A5: Absolutely — and it’s becoming the norm for overseas clients. As long as the accountant is a registered ACSP, they can verify you via live video call — you show your ID to the camera, they record it, certify it, and submit. I’ve done this for directors in Dubai, Sydney, even a yacht in the Med. Just ensure your internet’s stable and your ID’s glare-free. No need to fly home or courier documents.
Q6: What if a director’s name on their ID doesn’t exactly match Companies House records?A6: This is a classic headache — and I’ve fixed dozens. If it’s a typo (e.g., “Jon” vs “John”), your accountant can file a “change of director details” form alongside verification. If it’s a legal name change (marriage, deed poll), upload your marriage certificate or deed poll with your ID. Companies House is reasonable if you show proof. One client in Cardiff had her maiden name on file — we bundled her marriage cert with her passport scan. Approved in 24 hours.
Q7: Does verification affect a director’s credit score or personal credit file?
A7: Good news — nope. Verification is purely for anti-fraud and compliance. It doesn’t appear on Experian, Equifax, or TransUnion. I’ve had paranoid clients ask if it’ll “flag” them to lenders — it won’t. It’s not a credit check, not a financial history scan. It’s just confirming you’re you. Your mortgage application won’t care. Your bank manager won’t blink.
Q8: Can a PSC who lives abroad and rarely visits the UK still be required to verify?
A8: Short answer: yes. Residency doesn’t matter — if you’re a PSC of a UK company, you’re in scope. I’ve verified clients from Tokyo to Toronto. The DIY route works if you’ve got a valid passport and smartphone. If tech’s a barrier, an ACSP can handle it remotely. One client — a Swiss investor with 30% shares in a Manchester startup — verified via his accountant while skiing in Zermatt. Took 11 minutes. Global business, global compliance.
Q9: What if a director is incapacitated or lacks mental capacity — can someone verify on their behalf?
A9: Tricky, but manageable. If there’s a registered Lasting Power of Attorney (LPA) for property and financial affairs, the attorney can act — but they must submit the LPA registration certificate alongside the director’s ID. No LPA? You’ll need a court-appointed deputy — a longer process. I handled one case where a director had early dementia — we got the LPA registered in 3 weeks, then verified her via ACSP. Start early — don’t wait for the deadline.
Q10: Does verifying as a director automatically make someone liable for the company’s debts?
A10: No — verification doesn’t change your legal liability. If you’re a director of a limited company, your liability was already limited (unless you’ve given personal guarantees). This is purely an identity check, not a responsibility expansion. I’ve had nervous first-time directors think this “locks them in” — it doesn’t. Your legal position remains unchanged. Breathe easy.
Q11: Can a director use an expired passport if it’s still in their name and photo?
A11: Tempting, but no dice. Companies House’s system auto-rejects expired documents — even by one day. I’ve seen clients try with passports expired “just last month” — instant fail. Solution? Use your UK photocard driving licence instead. No licence? Renew your passport (fast-track is 1 week) or go the ACSP route — they can sometimes accept expired ID with a statutory declaration. But DIY? Fresh ID only.
Q12: If a company has multiple directors, must they all verify at the same time?
A12: Not at all — each director verifies independently, in their own time. No need to coordinate. I’ve had companies where one director verified in January, another in April, the third after a nudge letter in June. As long as everyone’s done before the deadline, you’re golden. Pro tip: Set a team reminder — the last one to verify often gets the panic email.
Q13: What’s the fastest way to verify if someone’s smartphone camera is poor quality?
A13: Borrow a better phone — seriously. Or use a tablet with a front-facing camera. Still struggling? Go to a library, post office, or your accountant’s office — most have decent devices and lighting. One client in Newcastle used his teenage daughter’s iPhone — passed first time. Another used the tablet at his local Citizens Advice bureau. Don’t let tech hold you back — improvise.
Q14: Can a director verify if their company is dormant or non-trading?
A14: Yes — trading status is irrelevant. If you’re on the register as a director or PSC, you must verify. I’ve had clients think “we haven’t filed accounts in years, so we’re exempt” — wrong. Dormant or not, if the company exists, you’re in scope. One director of a 2008-vintage shell company (no activity since 2015) got verified just to avoid dissolution. Smart move.
Q15: Does verification need to be renewed annually or periodically?
A15: No — once verified, you’re done for life (unless you’re removed and reappointed). Your verification code doesn’t expire. I’ve checked with Companies House directly — no renewal, no refreshers. One less thing to worry about. Just keep your code recorded somewhere safe — like your company’s statutory register.
Q16: What if a director receives a verification invite for a company they no longer work for?
A16: First — don’t ignore it. Second — resign properly. Log into Companies House, file a “TM01” form to resign as director. Once processed (usually 24 hours), the verification requirement drops off. If you’ve already been removed but still get invites, contact Companies House with your old director ID — they’ll clean up the system. I’ve fixed this for ex-directors three times this year — always resolved in 48 hours.
Q17: Can someone be verified as a director before officially being appointed?
A17: Clever question — and yes, you can. If you’re forming a new company or being appointed soon, you can pre-verify using the “Incorporation Authentication” route. You’ll get a code you can use during appointment. Saves time later. I’ve done this for clients buying businesses — they verify while due diligence runs, then hit the ground running on day one. Smooth as butter.
Q18: Does verifying trigger an automatic HMRC tax investigation?
A18: Not automatically — but it does turn on HMRC’s radar. If your tax filings don’t match your new director status (e.g., no salary declared, no dividends reported), you’ll likely get a “nudge letter”. I’ve seen it happen within days. So — verify, then immediately check your Personal Tax Account for mismatches. One client verified on a Tuesday, amended his tax return by Thursday, and avoided an enquiry. Timing is everything.
Q19: What if a director’s face has changed significantly since their ID photo (e.g., surgery, weight loss)?
A19: The system’s smarter than you think — minor changes are fine. But if it’s a dramatic difference (gender-affirming surgery, major weight loss, facial reconstruction), go the ACSP route. They can add a note explaining the change and submit supporting docs (like a GP letter). DIY might fail on facial recognition. One client post-surgery used her accountant — they included a brief cover note. Approved without fuss.
Q20: Can a director use a non-UK passport if they’re a British citizen?
A20: Yes — Companies House accepts any valid international passport, even if you hold British citizenship. I’ve verified clients using Canadian, Australian, and South African passports — no issue. Just ensure it’s machine-readable and not expired. The system doesn’t care about nationality — only that the ID is genuine and the face matches. Your British passport gathering dust in a drawer? No need to dig it out.
About the Author
Maz Zaheer, AFA, MAAT, MBA, is the CEO and Chief Accountant of MTA and Total Tax Accountants, two premier UK tax advisory firms. With over 15 years of expertise in UK taxation, Maz provides authoritative guidance to individuals, SMEs, and corporations on complex tax issues. As a Tax Accountant and an accomplished tax writer, he is renowned for breaking down intricate tax concepts into clear, accessible content. His insights equip UK taxpayers with the knowledge and confidence to manage their financial obligations effectively.
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