If you’re a company director in the UK and you’ve been ignoring those emails from Companies House about identity verification, it’s time to stop. As of 18 November 2025, every director and Person with Significant Control (PSC) must verify their identity using biometric data – and the consequences of non-compliance aren’t just annoying, they’re potentially catastrophic for your business.
This isn’t one of those “we’re improving our services” updates you can bin. This is a legal requirement with real teeth, and it applies to every existing company director, not just new incorporations. Miss the deadline, ignore the letters, and you could wake up to find your company struck off the register and your business assets transferred to the Crown.
Here’s everything you need to know.
Watch This First
The New ID Verification Mandate
Companies House has shifted from being a passive filing cabinet to an active regulator, and this change represents the biggest shake-up in UK corporate governance in decades. The new requirement is simple but absolute: every company director and PSC must verify their identity using a live video and ID document.
This became compulsory on 18 November 2025, and it applies retrospectively. If you’ve been a director for twenty years, you’re not exempt. If you incorporated last month, you’re already behind. The aim is to crack down on fraud, shell companies, and the practice of “phoenixing” – where directors dissolve a company to dodge debts and immediately pop up with a new one.
The verification process requires biometric data: a scan of your passport or driving licence, plus a live video selfie for facial recognition matching. It’s not optional, and there’s no grandfather clause for long-standing directors.
The Severe Consequences of Non-Compliance
Here’s where it gets serious. Companies House now has the power to strike your company off the register if you fail to verify your identity. This isn’t a theoretical threat – it’s an automated enforcement mechanism.
When a company is struck off, it ceases to exist as a legal entity. And here’s the kicker: if your dissolved company still holds assets – cash in the bank, vehicles, property, stock – those assets automatically transfer to the Crown under a legal doctrine called Bona Vacantia. You don’t get a grace period. You don’t get a warning shot. You just lose ownership of your business assets.
The silent danger here is that many directors don’t realise they’ve been struck off until it’s too late. Warning letters get sent to registered office addresses that nobody’s monitoring, emails go to old inboxes, and by the time you find out, your company’s already gone.
How to Verify Your Identity (Step-by-Step)
You’ve got two routes to comply with the new rules.
Option A: The Direct Route (Gov.uk One Login App)
This is the self-service option. You’ll need a smartphone, a valid passport or driving licence, and about ten minutes. The app walks you through scanning your ID and recording a short video for facial recognition. If successful, you’ll get an 11-digit personal code. Keep this safe – it links your identity to any future companies you direct.
Option B: The Agent Route (Use Your Accountant)
If you’re already working with an accountant or company formation agent, they can handle the verification on your behalf as an Authorised Corporate Service Provider (ACSP). This is often easier, though it may come with a fee. Check with your accountant to see if they’re offering this service.
Whichever route you choose, the key is to do it now. Don’t wait for the “final warning” letter, because by then you might already be in the danger zone.
Rising Costs for Limited Companies (2026)
As if the admin burden wasn’t enough, Companies House is doubling down with significant fee increases coming in February 2026.
Here’s what’s changing:
- Incorporation fee: £100 (up from £50) – a 100% increase
- Confirmation statement: £50 (up from £34)
- Dissolution fee: £13 (down from £33)
These fees are meant to fund the new enforcement powers granted under the Economic Crime and Corporate Transparency Act 2023. For a large corporation with a compliance department, these are rounding errors. For a micro-business or solo contractor, they’re yet another fixed cost that eats into already-thin margins.
The reduction in the dissolution fee is particularly telling. It costs twice as much to start a company as it does to shut one down. Draw your own conclusions.
The “Big Brother” Shift
What we’re witnessing here is more than just an anti-fraud measure. It’s part of a broader move towards digital identity and biometric surveillance of economic activity. The UK is building a system where your digital ID is permanently linked to your business operations.
For some, this increased security is welcome. For others, it raises serious concerns about data privacy, state overreach, and the creeping normalisation of biometric databases. Either way, the direction of travel is clear: if you want to operate a limited company in the UK, you’re going to hand over your biometric data, and you’re going to pay more for the privilege.
The best defence? Verify early, ensure your registered office address is monitored (so you actually receive warning letters), and audit your current Companies House filings to make sure everything’s accurate and up to date.
The Real Cost of “Corporate Transparency”
Is This the End of the “Side Hustle” Ltd Company?
While the official line from Companies House is all about “economic crime” and “fraud prevention,” it’s hard not to view these changes through a more cynical lens. We’re seeing a rapid rollout of intrusive measures that fundamentally change the relationship between the state and the business owner – and not for the better.
1. The Data Privacy Gamble
The requirement to hand over biometric data (live video and facial recognition) to a government database is a massive ask. We’re being told to trust the government’s data compliance and protection standards implicitly. Yet, history has shown us that large, centralised databases are prime targets for breaches. For a solo director, the risk-to-reward ratio here feels skewed. We’re trading our personal biometric privacy for the privilege of running a small business.
2. A “Micro-Tax” on Entrepreneurship
The fee hikes coming in February 2026 are perhaps the most bitter pill to swallow.
- Incorporation: £100 (up from £50)
- Confirmation Statement: £50 (up from £34)
To a corporation with a compliance department, these figures are rounding errors. But for the freelancer, the contractor, or the solo director making just enough to keep the lights on, this is yet another “micro-tax.” It’s a surcharge on the very act of being enterprising.
3. The “Shutdown” Signal
There’s a cruel irony in the new fee structure. While it’ll cost you double to start a company (£100), the fee to close a company is dropping to just £13.
The message seems loud and clear: if you’re too small to absorb the admin, the fees, and the surveillance, the government would prefer you to just shut down. It feels less like a crackdown on crime and more like a crackdown on the “little guy,” clearing the playing field for larger entities that view these hurdles as mere line items on a spreadsheet.
What You Need to Do Right Now
Don’t wait. Don’t assume this will go away. Don’t think you’ll “get round to it later.”
Action Plan:
- Verify your identity this week. Use the Gov.uk One Login app or contact your accountant. It takes ten minutes.
- Check your registered office address. Is it valid? Is someone actually opening the post? If you’re using a virtual office or accommodation address, make sure you’ve got a system in place to catch official correspondence.
- Audit your Companies House filings. Log into the register and check that all director details are current and correct. One wrong address could mean you miss a critical warning letter.
The new rules are here. The fees are going up. The surveillance apparatus is expanding. You can be angry about it, frustrated by it, or philosophically opposed to it – but you still need to comply with it.
Get it done.