Significant Companies House filing changes are on the way from April 2027, as part of the wider reforms introduced by the Economic Crime and Corporate Transparency Act (ECCTA) 2023. These updates will affect how UK companies submit accounts, with a clear shift toward greater transparency and digital efficiency.

Mandatory Use of Commercial Software from April 2027

From 1 April 2027, all companies will need to file their accounts using commercial software. This move is a key step in the modernisation of Companies House services. It means that both the web-based and paper filing routes for accounts submissions will close.

However, these web and paper options will still be available for other statutory filings. This change is expected to enhance data accuracy and security while reducing the risk of fraud.

New Filing Requirements for Small and Micro Entities

The same date marks a shift in filing obligations for small and micro-entity companies. Under the new rules:

• Micro-entities must file their balance sheet and profit and loss account.

• Small companies must file a balance sheet, directors’ report, auditor’s report (unless exempt), and profit and loss account.

Abridged accounts will no longer be accepted. This is one of the most impactful Companies House filing changes and aims to provide greater visibility into the financial affairs of smaller companies.

Changes to Audit Exemption Statements

Companies claiming an audit exemption will now be required to include an additional statement from the directors on the balance sheet. This statement must:

• Specify which audit exemption is being claimed.

• Confirm that the company qualifies for the exemption.

This measure ensures that directors are held more accountable and that exemptions are properly validated.

Restrictions on Changing the Accounting Reference Period

Another key change relates to accounting reference periods. Companies will only be allowed to shorten their accounting reference period once every five years, unless they can provide a valid business reason for doing so.

This rule aims to reduce the manipulation of accounting timelines and ensure consistency in financial reporting.

How We Can Help

These Companies House filing changes may seem complex, but we’re here to make the process easier. As experienced business advisers and accountants, we can:

• Help you transition to using commercial filing software.

• Review your company’s accounts to ensure they meet the new requirements.

• Guide you through the audit exemption process and prepare the required statements.

• Advise on accounting reference periods and ensure you remain compliant.

Whether you’re a micro-entity or a growing business, our team can help you stay ahead of these upcoming legislative changes.

Get in touch today to discuss how we can support your compliance and give you peace of mind.

You may have received a notification or seen communications from Companies House about a new identity verification requirement.  This is part of a wider update under the Economic Crime and Corporate Transparency Act 2023, aimed at tackling fraud and increasing transparency across UK businesses.

What is changing?

From Autumn/Winter 2025 (the exact date is still to be confirmed), it will become mandatory to verify your identity before:

• Filing a company’s Confirmation Statement (CS01)
• Incorporating a new company and new director and/or PSC appointments

Verification will also be a requirement for filing other documents at Companies House, on behalf of a company, for example the annual financial statements, in the future.

This applies to individuals in the following roles:

• Company Directors (or equivalents such as LLP members or general partners)
• Persons with Significant Control (PSCs)
• Anyone filing documents on behalf of a company (e.g. a company secretary)

This also applies to charitable companies.

The new process is designed to help maintain the integrity of the Companies House register by ensuring that the people behind companies are who they say they are.

The ID verification process is very similar to that for online passport renewals applications.

How can you verify your identity?

Although this isn’t yet a legal requirement, you can choose to verify early.  Our suggestion is that you do review this early if you can.

There are three options available:

1. Online via the new GOV.UK One Login service (this is free) by using a smartphone app or answering security questions online
2. In person at selected Post Office branches
3. Via an Authorised Corporate Service Provider (ACSP) (for a charge) although this is likely to require a similar ID verification process to GOV.UK One Login

At this stage, the simplest and most cost-effective route for most individuals will be to verify directly online via the GOV.UK ID Check app or the GOV.UK One Login app.

What do you need to verify your identify?

You can verify yourself online with GOV.UK, for free, if you have one of the following types of photo ID:

• Biometric passport from any country
• UK photo driving licence (full or provisional)

You will also need:

• Your current address, and the year you moved in
• To sign in to create a GOV.UK One Login

Please note that you should only need to do this once for all of your positions of director or PSC if you have more than one.

Our suggestion is that you verify your identity now, ahead of the mandatory implementation date.  Once you have completed this, you will be provided with a personal code and our Company Secretarial team ([email protected]) , or your normal Lewis Brownlee contact, are ready to receive this code from you if we provide you with assistance on company secretarial matters like the annual Confirmation Statement (CS01).  We will also require this personal code to continue to submit documents to Companies House on your behalf.

How to verify if you do not have these types of photo ID?

If you do not have any of these types of photo ID but live in the UK, you can use the GOV.UK service to find out if you can verify in one of the following ways:

• in person at the Post Office
• with bank or building society details – you’ll then need to provide your National Insurance number and answer some security questions

If you do not have the required identity documents or information to verify with GOV.UK or at the Post Office?

You can ask an ACSP such as a solicitor, to verify your identity on your behalf.  This is also known as a Companies House authorised agent.

You’ll need to provide suitable identity documents, which may prove difficult in some situations, these can be found at https://www.gov.uk/guidance/how-to-meet-companies-house-identity-verification-standard.

Unfortunately, Lewis Brownlee is unable to assist you in verifying your ID via this (non-photo ID) route as it requires specific training and accreditation.

Why this matters

Once this becomes law, you will not be able to file legally required documents unless you have verified your identity.  Failing to comply could result in financial penalties or even disqualification.

If you have any questions about this process, or whether it affects you, please get in touch with your normal contact or our Company Secretarial team at 01243 782 423 or [email protected].

We are here to help you through this transition to ensure it is as smooth as possible.

If you own or manage a UK company, you’ve likely come across the term Person of Significant Control (PSC). But what exactly does it mean, and why is it important? Understanding who qualifies as a Person of Significant Control and how to stay compliant with the relevant rules is essential for avoiding penalties and maintaining transparency.

In this blog, we explain the meaning of a Person of Significant Control, what your responsibilities are as a business, and some of the common pitfalls to avoid.

What Is a Person of Significant Control (PSC)?

A Person of Significant Control is someone who holds real influence over a company. This influence can be through share ownership, voting rights, or another form of control. A PSC must meet at least one of the following criteria:

• Owns more than 25% of the company’s shares.

• Controls more than 25% of the company’s voting rights.

• Has the right to appoint or remove the majority of the board of directors.

• Exercises significant influence or control over the company.

• Controls a trust or firm that meets any of the above conditions.

Your Responsibilities as a Company

Companies registered in the UK, including LLPs and certain other entities, are legally required to follow the PSC rules. This includes:

1. Identifying Your PSCs

You must determine who exercises significant control over your business. This includes reviewing shareholdings, voting arrangements, and any hidden influence.

2. Maintaining a PSC Register

Your company must keep a PSC register. This should include each PSC’s name, date of birth, nationality, service address, and the nature of their control.

3. Reporting to Companies House

Information from your PSC register must be reported to Companies House and updated when changes occur.

4. Updating Details Promptly
If there is a change to PSC status, you must update your PSC register within 14 days and notify Companies House within another 14 days.

5. Annual Confirmation
Even if no changes occur, you must confirm the information is correct at least once every 12 months.

Common Pitfalls to Avoid

Although the Person of Significant Control regime has been in place for some time, many businesses still struggle with compliance. Common mistakes include:

• Failing to Identify PSCs Correctly
  Some businesses don’t investigate deeply enough to identify who truly has control.

• Providing Incomplete or Inaccurate Information
  Simple mistakes, such as incorrect birth dates or spelling errors, can lead to rejected filings.

• Not Reporting Changes in Time
  Deadlines for updating PSC records are often missed.

• Neglecting the PSC Register
  Your register must be reviewed and updated regularly, not just created once and forgotten.

• Misunderstanding ‘Significant Influence or Control’
  This is often a grey area, especially in more complex ownership structures such as trusts or joint ventures.

What Are the Consequences of Non-Compliance?

Failing to comply with PSC regulations can lead to:

• Fines
  Both companies and their directors may face financial penalties.

• Criminal Charges
  Deliberately withholding PSC information is a criminal offence and could lead to prosecution.

• Reputational Damage
  Non-compliance may raise concerns with investors, regulators, and business partners.

What If No One Holds More Than 25%?

It’s not uncommon to find companies where no individual or entity owns more than 25% of shares or voting rights. Here’s what to consider:

1. Review Other Criteria
Someone may still qualify as a PSC through significant influence or control.

2. Look at Agreements and Voting Rights
Voting agreements and joint decision-making structures can reveal a PSC.

3. Consider Indirect Control
PSCs may control a company through trusts or corporate structures.

4. Declare No PSC
If no one meets the criteria after a thorough check, this must be clearly stated in the register and confirmed to Companies House.

5. Keep Reviewing
Even if no PSC exists now, this could change in the future. Regular reviews are essential.

What If a PSC Passes Away?

If a PSC dies, they must remain on the register until their interest is formally transferred. Executors do not automatically become PSCs unless they gain actual control. Once a new individual takes on significant control – such as an heir – they become the new PSC and must be registered.

How We Can Help

Managing your PSC obligations is more than a tick-box exercise, it’s about staying compliant and protecting your business. At Lewis Brownlee, we have a dedicated Company Secretarial team who specialise in PSC compliance.

If you’re unsure about identifying a Person of Significant Control, updating your register, or submitting filings to Companies House, we’re here to help. Get in touch today and we’ll make sure your company remains compliant and transparent.