What effects are Companies House changes having on clients and firms?

Changes have been around long enough to make a difference. Here’s what accountants have noticed.

The Economic Crime and Corporate Transparency Act (ECCTA) became law in October 2023, bringing in changes to how Companies House operates. The first set of changes was introduced in early 2024, but implementation will continue into 2026.

Measures include more stringent identity verification. Specifically, Companies House will be required to verify the identity of anyone submitting information to the public register, including those acting on behalf of a company, from Autumn 2025. Identify verification can be done directly with Companies House online, or through an Authorised Corporate Service Provider (ACSP).

Here’s what you can do to be accepted as an ACSP by Companies House.

Some measures have been around long enough for accountants, bookkeepers and their clients to feel their effects. So how are they all responding to changes?

Reforms are adding to compliance complexity and changing the culture

Becky Jenkins, Year-end Manager, StriveX

The reforms are seen as a step in the right direction, but for smaller firms it’s another layer of the ever-growing compliance to manage. We’re already performing rigorous AML and due diligence checks, so the new Companies House verification process feels like a duplication. It’s more non-chargeable admin time, which inevitably increases pressure on teams, and, in some cases, may require firms to review their fee structures to absorb the cost.

For most practices, the impact isn’t just procedural, it’s cultural. Firms are having to balance a stronger compliance landscape with the reality of running a profitable, sustainable business. This forces the profession to think carefully about where human time is best spent, and how to communicate added compliance requirements to clients who are already feeling regulatory fatigue.

The ‘failure to prevent fraud’ offence reinforces the role accountants play as gatekeepers of the financial system. Professional firms need watertight policies and training in place to demonstrate ‘reasonable fraud prevention measures’ if ever challenged. We’re reviewing internal training and updating onboarding processes.

The 2027 change requiring small companies to file a profit and loss account publicly will be one of the biggest culture shifts for small business owners, many of whom have never had that level of visibility before. Accountants will need to guide business owners through what this means, why it’s happening, and how to prepare.

We’re seeing firms weigh up the additional administrative and liability burden of becoming an ACSP. For many, it’s a question of practicality: smaller firms will need to decide whether it’s worth taking on the responsibility, or whether to ask directors to handle verification directly.

Verdict: The reforms are a positive step toward improving corporate transparency and tackling fraud, but they come with some very real challenges for small accounting firms.

It’s important to keep things clear and jargon-free for my clients

Emma Dearlove, Founder, Auxilium Finance

I’m already seeing panic from half my clients. The communication around it has led to confusion around things like ID checks, what’s urgent and what’s a scam.

I’m already registered for anti-money laundering (AML) and carry out ID checks as part of my onboarding process, but I’ve held off registering as an ASCP for now. At this stage, my priority is helping clients understand what’s changing and why, without overwhelming them with jargon or formality.

A lot of the businesses I support rely on me to translate changes into plain English. They are sole traders, creatives and new businesses that are less than five years old, and don’t have in-house finance teams. I’ve been focusing on providing practical tools and free resources to demystify it all, including what they need to do about ID verification and how to stay safe online.

Verdict: I’m keeping an eye on how the ACSP rollout develops, but for now, the focus is on education, support, clear communication and meeting clients where they’re at.

It’s likely we’ll to have to become an ACSP

Erin Walls, Founder and Director, WallsMan Creative

Companies House has already emailed people about the changes, and we’ve had lots of clients get in touch to ask about it. Their questions include “Is it real?”, “Can you do this for me?”, and “What happens if I don’t want to verify myself?”.

Well it is real, and the deadline is coming fast. It’s actually a very good thing, as there are lots of people on the register who have given their name in slightly different ways. Variations such as Mr. Paul A. Smith, Mr. Paul Alfred B. Smith, Mr. Paul A. B. Smith, Mr. Paul A. Brice Smith and Mr. Paul Alfred Brice Smith, for example, mean that if you want to see what companies this person is connected to, and you just look up one variant, you could miss the other companies. The purpose of the verification is to identify this person and pull all those records into one, so when you look them up, you see everything and get a complete picture.

As accountants, we are encouraging our clients to do this themselves initially, but it’s likely we will have to become ASCPs to file for them in future. We need to make sure our internal verification process is robust. We are legally responsible for confirming that the person is who they say they are.

Verdict: Becoming an ACSP is not something we want to take on, but we might have to. Fortunately accountants have pretty robust AML processes, which involve checking a person’s ID – however, we want to cover all possible risks first.

We urge our members to think carefully about whether becoming an ACSP is right for them

AAT

In light of compliance risks, we urge our members to make a well-informed decision about whether becoming an ACSP is the right fit for their firm.

There is a separate identity verification standard set by Companies House which is different from the risk-based approach taken in AML compliance. There are also different record-keeping requirements, according to which identity verification documentation for ACSP purposes must be kept for 7 years. There will be offenses in relation to breach of record keeping or late submission of information requested by the registrar.

GOV UK has issued information on How to meet Companies House identity verification standard. If the evidence is being checked by a person, that person must be trained in detecting false documents and be familiar with the guidance on examining identity documents to detect basic forgeries. Companies House cannot recommend any specific training providers, but they must follow the Home Office best practice guide.

Verdict: Becoming an ACSP carries risks that members should take seriously. Investigate them thoroughly before proceeding.

We anticipate challenges for Companies House with so many people needing to verify ID

Janak Prajapati, Director, Crowe

Many accountancy firms are actively considering ACSP registration, or have already registered, to retain their ability to file documents with Companies House and continue delivering Company Secretarial services from Spring next year. Becoming an ACSP enables firms to offer ID verification services to clients too.

At present, the Companies House identity verification process is relatively straightforward for most clients and reported issues have been limited. But as the process is not yet mandatory, it’s probable that further challenges could emerge once full implementation begins.

Especially as more individuals and firms engage with the system. An estimated 6-7 million individuals are required to verify their identity by mid-November 2026, so Companies House may face processing delays, especially during peak periods.

Non-compliance with ID verification requirements will be considered an offence, potentially leading to financial penalties and restrictions on filing or company formation. The ID verification rollout is part of wider reforms under ECCTA, which includes the new ‘failure to prevent fraud’ offence. This adds further compliance pressure and legal exposure for firms.

Verdict: Becoming an ACSP has its benefits, such as offering ID verification services, but non-compliance will be considered an offence.

Georgia Lewis is a journalist who has worked in Australia, the Middle East and the UK. Over 30 years, Georgia has covered a diverse range of subjects and industries, including business, insurance, technology and logistics..