The Compliance Clock: Counting Down to Changes Under the ECCTA

Home » News & Blog » The Compliance Clock: Counting Down to Changes Under the ECCTA

On 18 November 2025, several provisions under the Economic Crime and Corporate Transparency Act 2023 (ECCTA) will come into force, bringing significant changes to the UK corporate landscape. These reforms aim to improve transparency, strengthen corporate accountability, and reduce the risk of economic crime.

While welcome from a governance perspective, the changes are primarily designed to prevent misuse of corporate structures, enhance the accuracy of the UK company register at Companies House, and introduce new compliance responsibilities for directors, officers, and owners. Below is a summary of some of the key changes, effective 18 November 2025 (except for the updates relating to accounts, which are addressed separately).

Key Changes

Identity Verification

One of the most significant changes is that all directors, persons with significant control (PSCs), and LLP members must verify their identity with Companies House.

• Directors: New directors must verify before appointment; existing directors at their next confirmation statement.
• PSCs: Verification is required under a separate system—even if they have already verified as directors. New PSCs must verify within 14 days of becoming registrable. Existing PSCs must verify either:

1. Within 14 days of the company’s confirmation statement date (if a director), or
2. Within 14 days of their birth month (if not a director).

• Relevant Legal Entities (RLEs): New RLEs must appoint a ‘relevant officer’ whose identity is verified and complete verification within 28 days. The position for existing RLEs is still to be confirmed.

Of the above, we believe the most straightforward way for individuals to verify their identity is via the use of the GOV.UK One Login system. The process takes most people under ten minutes and involves them providing their details, together with photographs of their relevant ID documents. At the time of writing, there is no fee for this (which is also the case for Post Office applications). There would likely be fees if using an ACSP to verify identity on your behalf, which would be determined by the provider used.

Once verified, individuals receive a personal code for all future filings.

Company Registers

Companies will no longer be required to maintain internal registers of directors, secretaries, or PSCs. This information will now be held at Companies House.

However, the register of members must be maintained internally at the company’s registered office or a Single Alternative Inspection Location (SAIL). It must remain publicly accessible and comply with statutory requirements, including shareholder names, addresses, shareholdings, and membership dates.

This change reduces duplication and improves the accuracy of public company information. Companies should use this opportunity to check that their internal registers are accurate and filings are up to date.

Accounts

From 1 April 2027, further changes to company accounts come into effect:

1. Accounts must be filed using commercial software; paper and WebFiling will no longer be accepted.
2. Abridged or ‘filleted’ accounts will no longer be permitted.
3. Companies can only shorten their accounting reference periods once every five years without a ‘business reason’.

Companies House has begun issuing communications to some companies regarding these upcoming changes. For questions about account preparation and filing, companies should consult their accountants.

Actions for Companies

The ECCTA changes present both a compliance challenge and an opportunity to review governance. Directors and PSCs should act early to ensure identity verification is completed on time.

Companies should consider the following steps:

1. Ensure directors and PSCs understand their obligations and complete verification within the relevant timeframes.
2. Align confirmation statement dates with verification deadlines.
3. Maintain the register of members internally if currently held at Companies House.
4. Update governance and onboarding processes to reflect the new rules.
5. Consider retaining internal registers of directors/PSCs for good governance, even if no longer required.
6. Discuss upcoming changes to account filing with your accountant.

For anyone incorporating a company after 18 November 2025, proposed directors and PSCs must complete identity verification before the incorporation application is submitted.

While the 18 November 2025 deadline may seem distant, early preparation avoids last-minute disruption, ensures compliance from day one, and reduces the risk of civil and criminal penalties.

For further guidance on the changes and to stay updated, visit GOV.UK – Changes to UK company law.

If you have questions about how these changes might affect your business, contact our experts for professional and confidential advice.