The Economic Crime and Corporate Transparency Act (ECCTA) is bringing the biggest shake-up to Companies House since it was first established in 1844. If you’re a company director, a person with significant control (PSC), or someone who files information on behalf of a company, these changes will directly affect how you operate ...
Adapt to the ECCTA now and you'll be ready for the future!
This isn't just another box-ticking exercise. The government is making a serious effort to crack down on corporate fraud, money laundering, and shady business practices. For years, UK companies could be registered with little oversight, making it easy for criminals to set up fake businesses, hide ownership, and move illicit funds. With the ECCTA, that's about to change.
The goal is simple: make UK businesses more transparent, accountable, and trustworthy. Companies House will no longer be a passive record keeper; it will now have the authority to verify identities, challenge suspicious filings, and reject incorrect information.
If you interact with Companies House in any way, the new rules cover:
Company Directors – You will need to verify your identity before being appointed as a director. You'll also be responsible for ensuring all company records are accurate.
People with Significant Control (PSCs) – If you own or control a company, you'll have to prove your identity.
Anyone Filing Information on Behalf of a Company – This includes accountants, solicitors, and company secretaries, who will face new compliance checks and potential scrutiny.
One of the most significant changes is mandatory identity verification. From now on, directors, PSCs, and some third-party filers will need to prove who they are before submitting documents. This is a major step toward preventing fraudulent directorships and shell companies.
Another key shift is the role of Companies House itself. Previously, it functioned as a passive registry, accepting filings without question. Under the new rules, it will actively challenge, investigate, and reject incorrect or suspicious submissions. This means businesses will need to be far more careful when submitting documents, as mistakes or discrepancies could lead to delays or penalties.
The ECCTA also strengthens enforcement against fraudulent activity. Filing false or misleading information will now carry greater legal consequences, and law enforcement agencies will have more tools to pursue corporate crime. This isn't just about compliance—it's about making the UK a hostile environment for fraudsters and a safer place for legitimate businesses.
"What should business owners do now?"
For company directors and PSCs, the first step is preparing for identity verification. If you are required to provide proof of identity, make sure your documents are in order. This verification process is not an optional extra - it will become a core requirement for anyone involved in running a company.
Businesses should also take this opportunity to audit their records. If your company filings contain outdated or incorrect information, now is the time to correct them. With Companies House becoming more proactive, errors that might have slipped through before could now result in delays, fines, or even enforcement action.
It's also important to stay informed. The changes under the ECCTA will be introduced in phases, so keeping up to date with announcements from Companies House will help you stay ahead of any new requirements.
If you operate ethically, these changes are a good thing. By increasing transparency and tightening oversight, the act helps create a more stable, trustworthy business environment. This, in turn, reduces risk, strengthens business relationships, and makes it harder for bad actors to exploit the system.
"While the new rules may require some adjustments, the long-term benefits far outweigh the inconvenience!"
Companies that embrace these changes early will not only avoid compliance headaches, but will also stand out as trustworthy, responsible businesses in a regulatory landscape that is becoming more rigorous.
If you're a company director, PSC, or someone responsible for filings, now is the time to understand the changes, take action, and ensure your business is compliant.
Adapt to the ECCTA now and you'll be ready for the future.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the ECCTA and how it will affect you and your business, it could be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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