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Companies House ID Verification 2025: A Director's Guide to the New UK Rules

Companies House ID Verification 2025: A Director’s Guide to the New UK Rules

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Companies House ID Verification 2025: A Director's Guide to the New UK Rules

A major change is coming for all UK company directors in 2025. Companies House is introducing mandatory identity verification and we’ve created this essential guide to explain what the new director ID verification rules mean for you, ensuring you stay compliant and avoid significant penalties.

These new measures are part of the Economic Crime and Corporate Transparency Act (ECCTA), a significant piece of legislation designed to improve the quality of data on the UK Companies Register and prevent corporate structures from being used for fraudulent activities.

This guide will walk you through the key changes, deadlines, and the exact steps you need to take.

What Are the New Director ID Verification Rules?

The core of the new legislation is the requirement for all new and existing company directors and other key individuals to verify their identity with Companies House. The goal is to ensure that every registered company has a real, verified person behind it, making it much harder to appoint fictitious directors or hide beneficial ownership.

This is a one-time verification process per individual, regardless of how many directorships you hold.

Who Needs to Complete the Companies House Identity Verification?

The new identity verification requirements apply to a wide range of individuals. You will need to verify your identity if you are:

  • An existing or newly appointed company director.
  • A Person with Significant Control (PSC).
  • A member of a Limited Liability Partnership (LLP).
  • Any individual who files information or documentation with Companies House.

Key Deadlines:

When Do I Need to Be Verified By?

The rollout of these new ID check rules is happening in phases. It’s crucial to be aware of these dates:

  • From April 8, 2025 (Voluntary Verification) — You can (and should) get ahead of the deadline by verifying your identity now.
  • From Autumn 2025 (Mandatory for New Appointments) — ID verification will be compulsory for all new company incorporations and for any newly appointed directors or PSCs.
  • Autumn 2025 – Autumn 2026 (Transitional Period for Existing Directors) — If you are an existing director, you will have a 12-month window to verify your identity. This period will be linked to your company’s confirmation statement filing date.
  • From Spring 2026 (Mandatory for Filers) — Anyone who files documents with Companies House, such as accountants or administrative staff, must have a verified identity.

Step-by-Step:

How to Complete Your ID Verification

There are two official methods for completing your director identity verification:

1. Directly with Companies House (digital route): This is a free digital process using the GOV.UK One Login system. You will need a form of photo ID, such as a passport or UK driving licence. The system will ask you to take a photo of your document and then a “selfie” to biometrically match your identity.

2. An in-person option at a Post Office will be available for those unable to use the digital service.

Penalties for Non-Compliance:

What Happens If You Don’t Verify?

Companies House is taking these new rules very seriously. Failing to verify your identity within the deadline is not an option. The consequences of non-compliance are significant and include:

  • A Criminal Offence — It will be a criminal offence for the unverified individual.
  • Financial Penalties — You could face substantial fines.
  • Inability to Act — You will be unable to legally act as a director.
  • Filings Blocked — You will be barred from filing any documents for your company.
  • Director Disqualification — You could be disqualified from being a director.
  • Reputational Damage — The public register will flag your status as “unverified,” which could damage your company’s credibility.

Frequently Asked Questions (FAQ)

Q: Is Companies House identity verification free?
A: Yes, verifying your identity directly with Companies House using the GOV.UK One Login system is free.

Q: What documents do I need for the ID check?
A: You will typically need a form of photographic ID. A valid passport or a UK photocard driving licence are the most common documents used.

Q: What happens if I am a director of multiple companies?
A: You only need to verify your identity once. The verified status will then be linked to your name and apply across all your directorships.

CIS sub-contractor refunds - a service from Taxfile, Tulse Hill, South London

CIS Sub-contractors – Claim Your Tax Refund Now!

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CIS sub-contractor refunds - a service from Taxfile, Tulse Hill, South London

[Updated April 2025]: It’s now time to start the process of claiming your tax refund if you are a sub-contractor working within the Construction Industry Scheme (‘CIS’). Refunds are usually fast through Taxfile. What’s more, we’ve reduced our prices this year for CIS customers earning less than £40k (click here for details).

What you need to do

Don’t delay – book an appointment with Taxfile today or call 0208 761 8000 and we’ll sort it all out for you. We have staff who speak English, Polish, Pashto, Dari, Russian, Malayalam, and Dutch, should you need them on the day. Our Tulse Hill office is at 25 Thurlow Park Road, London SE21 8JP. Call 0208 761 8000 or book an appointment — the first 20 minutes is free! Alternatively, you can have a ‘virtual’ appointment with us on Zoom, Teams, Google Hangouts, Skype, FaceTime, WhatsApp or whatever you prefer.

We’re open from Monday to Saturday in April & May including early evenings on Mon/Tues

Our Tulse Hill office is open 6 days a week during April & May and offers Saturday morning appointments plus early evening appointments on Mondays and Tuesdays if standard office hours do not suit you (please see the footer of this website for details or simply call us).

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Lower Prices for CIS Clients – We’re on Your Side!

Lower Prices for CIS Clients – We’re on Your Side!

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Lower Prices for CIS Clients – We’re on Your Side!

By Julie at Taxfile.

At Taxfile, we understand that the cost of living is hitting everyone’s pockets. That’s why we have taken bold action to make things a little easier for our valued CIS (Construction Industry Scheme) clients earning less than £40k. We are dropping our prices like never before! Now, you can benefit from our expert services for just £220 +VAT (£264).  That’s right – we have slashed our prices by £55 to make sure you keep more of your hard-earned money where it belongs: in your pocket.

Why Choose Taxfile?

With over 25 years of experience, we know a thing or two about providing reliable, friendly, and expert accountancy services. Unlike other accountants, we pride ourselves on being approachable and accessible. When you work with us, you’re not just another number – you are part of our Taxfile community.

The internet is full of agents promising you huge tax rebates, but the truth is, many of these so-called “experts” leave you at risk of being investigated by HMRC.  Taking shortcuts with your taxes can be costly in the long run. At Taxfile, we do things the right way – no dodgy deals, just honest, professional advice you can trust.

Our invoices will have an additional £6 HMRC investigation cover fee, which means you are protected from additional costs if HMRC decides to investigate your tax return. At a total cost of £270, not only will we calculate and submit your tax return, but we will support you after its completion.

If you are a sub-contractor working in the CIS scheme, find out what you need to provide to begin your tax refund claim here.

We want to Give Back to Our Community

We value your trust in us. That is why we offer a £35 referral fee for every new CIS client you recommend. So, why not share the love and put some extra cash in your pocket?

We hope to be leading the way by giving access to affordable, professional accountancy services. Together we can build a stronger and more financially secure community, bucking the trend of rising costs.

Stay Ahead of HMRC Compliance Checks for CIS Contractors

Stay Ahead of HMRC Compliance Checks for CIS Contractors

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Stay Ahead of HMRC Compliance Checks for CIS Contractors

By Ali at Taxfile.

As the new tax year approaches, CIS contractors must prepare for the upcoming 2024/25 tax return season.  Last year we witnessed a significant increase in HMRC compliance checks delaying refunds, with many contractors being asked to provide detailed CIS pay/deduction slips and bank account transactions to verify their income.

At Taxfile, we are here to help you navigate these challenges and ensure your tax affairs are in order while offering you peace of mind with our unique HMRC investigation cover.

Why Are HMRC Compliance Checks on the Rise?

HMRC has ramped up its efforts to ensure compliance among CIS contractors, particularly focusing on verifying income and deductions. Last year, many contractors were caught off-guard when asked to provide:

  • CIS pay/deduction slips to confirm tax deductions at source.
  • Bank account transactions to prove income received from contractors.

Failure to provide these documents can lead to penalties, delays, and even full-scale investigations. With HMRC’s increased scrutiny, it’s more important than ever to ensure your records are accurate, complete, and readily available.

At Taxfile, we specialise in supporting CIS contractors with their tax returns and compliance needs.

How we stand out:

1. Expert Preparation of CIS Tax Returns

Our team ensures your 24/25 tax return is accurate, compliant, and submitted on time. We review your CIS pay/deduction slips, income, and expenses to minimise the risk of errors that could trigger an HMRC compliance check.

2. HMRC Investigation Cover is Included

Unlike other accountancy services, our invoices include HMRC investigation cover as standard. If HMRC decides to investigate your tax return, we’ll handle all the additional work required to represent you—at no extra cost. This means you’re protected from unexpected fees and stress.

3. Proactive Record-Keeping Support

We guide you on how to maintain proper records, including CIS slips, bank statements, and expense receipts, so you’re always prepared for an HMRC request.

4. Dedicated CIS Specialists

Our team understands the unique challenges faced by CIS contractors. We’re here to answer your questions, provide tailored advice, and ensure you’re fully compliant with HMRC regulations.

With HMRC’s increased focus on compliance, now is the time to act to ensure you get your refund sooner. We urge you to come prepared with your CIS deduction slips and your bank feed covering the period from 06/04/2024 – 05/04/2025.

Making Tax Digital for Income Tax & Self-Assessment (MTD f ITSA): Your Friendly Guide

Making Tax Digital for Income Tax: Your Friendly Guide

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Making Tax Digital for Income Tax & Self-Assessment (MTD IT): Your Friendly Guide

Tax. The very word can sometimes send shivers down your spine! But what if we told you there’s a way to make things a little less… taxing? Enter Making Tax Digital for Income Tax & Self-Assessment (MTD IT)!

Now, before you click away, hear us out. This isn’t about making tax more complicated. It’s actually about bringing your tax admin into the digital age, which in the long run, can save you time and reduce errors. What’s more, if you work through Taxfile, it could also save you money! Think of it as upgrading from paper maps to Google Maps for your finances!

If you work through Taxfile, it could save you money!

So, what exactly is MTD for Income Tax?

Making Tax Digital for Income Tax & Self-Assessment is a government initiative that affects self-employed individuals and landlords/ladies with a total business and property income above a certain threshold. It requires them to keep digital records of income and expenses and send quarterly updates to HMRC using MTD-compatible software*.

Who needs to get on board?

  • For the 2026/27 tax year, the rules apply to those with a total gross income (turnover) from self-employment and/or property exceeding £50,000 per year.
  • For the 2027/28 tax year, it will apply to those with a turnover greater than £30,000 and …
  • For 2028/29 it will affect those with a turnover of £20,000 or more.

If any of these apply to you, then MTD for Income Tax is something you’ll need to familiarise yourself with — but Taxfile can help!

Instead of one big tax return at the end of the year, MTD requires you to send updates every quarter. Think of it as breaking down the task into smaller, more manageable chunks. These updates will provide HMRC with a summary of your income and expenses for that three-month period.

Why the switch to digital?

HMRC believes that going digital will:

  • Reduce errors — let’s face it, manual data entry can be prone to mistakes. Digital records can help minimise these.
  • Make tax management easier — regularly updating your records can give you a clearer picture of your business’s financial health throughout the year, not just at the tax deadline.
  • Potentially reduce stress — knowing you’re keeping on top of things digitally can be a weight off your mind!

*Do You Need to Buy MTD-Compatible Software?

The key to MTD for Income Tax is using compatible software. The software allows users to keep digital records of income and expenses, submit quarterly updates to HMRC, and view tax information in one place. There are various software packages available. While some are free for those with simple needs, others offer more advanced features.  HMRC estimates the additional cost to the taxpayer at £338 as a one-off administrative burden and then an additional £100 each year following. However, Taxfile has a way for you to potentially avoid such additional software costs, explained below.

“Taxfile has a way for you to avoid such software costs”

Taxfile’s Solution — What to Do

At Taxfile, with our in-house software skills for various MTD packages, we believe that the taxpayer needs only to provide us with their business transactions (income & expenditure) in a simple spreadsheet each quarter — we’ll then take on the additional responsibility.  Working through Taxfile, MTD can be that simple!

“Simply supply us your quarterly income & expenditure transactions in a spreadsheet — we’ll do the rest!”

If you would like to speak to us about MTD, have any concerns, or would like some advice, we offer free consultations. We are happy to help whenever we can, so just drop into our office, book an appointment, or give us a call on 020 8761 8000.

020 8761 8000 Book Appointment Contact Us

Taxfile are accountants and tax advisors based in Tulse Hill, London SE21.

Don't Miss Out! Your Future Pension Needs YOU! - Check Your NI Contributions by April 5th, 2025

Don’t Miss Out! Your Future Pension Needs YOU! – Check Your NI Contributions by April 5th, 2025

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Don't Miss Out! Your Future Pension Needs YOU! - Check Your NI Contributions by April 5th, 2025

By Mohamed at Taxfile.

Have you ever thought about your pension? It might seem far away, but it’s super important to start thinking about it now! One of the key things that helps build your future pension is your National Insurance (NI) contributions.

What are NI Contributions?

Think of NI contributions like little building blocks for your future. When you work and earn money, some of that money goes towards your NI. These contributions help you qualify for things like the State Pension when you’re older.

Why is it Important to Check?

Sometimes, there might be gaps in your NI record. Maybe you didn’t earn enough in a year, were travelling, or something else happened. If you have gaps, it could mean you get less State Pension later on.

The Good News: You Can Fill the Gaps!

You can often fill these gaps by making voluntary NI contributions to fill the gaps between 2006 to 2018 This means you pay a bit extra now to make sure you have a stronger pension later.

Big Deadline Alert! April 5th, 2025

There’s a really important deadline coming up: April the 5th, 2025. This is the last day you can pay voluntary NI contributions to fill certain gaps in your record. After the 5th of April 2025, everyone will only be able to pay for voluntary contributions for the past 6 years.

Why the Rush?

  • Boost your pension because filling gaps means a bigger pension in the future.
  • Don’t miss out — after the 5th of April 2025, everyone will only be able to pay for voluntary contributions for the past 6 years.

What Should You Do?

  1. Check your NI record — it’s free and easy! You can check your NI record online through the government’s website.
  2. See if you have gaps — look for any years where you didn’t contribute enough.
  3. Think about voluntary contributions. If you have gaps, consider paying voluntary contributions.

Lowering the Secondary Threshold for Employer NI – What You Need to Know

Lowering the Secondary Threshold for Employer NI – What You Need to Know

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Lowering the Secondary Threshold for Employer NI – What You Need to Know

From April 2025, the secondary threshold for employer National Insurance (‘NI’) will be lowered. This means that employers will need to start paying employer NI contributions on their employees’ earnings sooner.

How Will This Affect Employers?

This change will affect employers in a number of ways. Firstly, employers will need to pay more in employer NI contributions. Secondly, employers will need to update their payroll systems to reflect the new threshold.

Employer NI and Employment Allowance Update

As an employer, you are responsible for deducting and paying National Insurance contributions (‘NICs’) for your employees. There are two types of NICs:

  • Employer NICs — These are paid by you as the employer.
  • Employee NICs — These are deducted from your employees’ wages.

Employment Allowance

The Employment Allowance is a relief that allows eligible employers to reduce their National Insurance contributions. The allowance increases from £5,000 to £10,500 per year from April 2025.

Increase in Employer NICs

From April 2025, the rate of Employer NICs increases from 13.8% to 15%. This means that you will need to pay more NICs for your employees.

How Taxfile Accountants Can Help

Taxfile Accountant can help you with all aspects of your payroll, including:

  • Calculating and deducting NICs
  • Claiming the Employment Allowance
  • Preparing and filing your payroll reports

We can also provide you with advice on how to minimise your NICs liability.

Late with your tax return and tax payment? What happens now?

Missed the Tax Return Deadline? What Happens Now?

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Missed the Tax Return Deadline? What Happens Now?

[Updated February 2025]: If you missed the 31 January deadline to submit your self-assessment tax return, you are now into the penalty stage. HMRC applies an automatic £100 penalty to those who are anywhere from 1 day to 3 months late. Further penalties are then added if you take even longer to comply. It’s even worse if you haven’t paid the tax owed to HMRC by 31 January because you’ll then owe interest on that too.

Our Advice if You’re Late

If you are late submitting your tax return and/or paying the tax owed, our advice is to:

  1. submit your tax return without delay;
  2. pay as much tax as you can as soon as possible*.
    By doing both, you’ll minimise the penalty and interest payable to HMRC.

* Payment of any historic tax for 2023/24 and prior years is best dealt with by the last day of February at the latest. Any amount that remains due for 2023/24 is considered late thereafter and will attract an automatic HMRC charge of 5%.

What if you Cannot Pay?

If you cannot pay (or have tax arrears) it’s important that you demonstrate to HMRC that you’re paying as much as you can — and as regularly as possible. The good news is that HMRC has a quick and easy facility for exactly this purpose. By calling 0300 200 3402, you can pay using a debit card. It takes only minutes and doesn’t require any explanation — give it a try!

You will need your tax reference and, after making a payment, will be given a payment reference.

Possible Excuses for Late Tax Returns

What are your options if there were genuine reasons, beyond your control, that stopped you being able to submit your tax return on time? Well, if you “took reasonable care to meet” a deadline and there was a genuine reason why you were late, you have the option to appeal. However, your circumstances must fit HMRC’s eligibility criteria. Let’s take a look at those below.

Circumstances that are taken into account by HMRC when considering appeals include:

  • if a close relative or partner died shortly before the tax return or payment deadline;
  • if you had to stay in hospital unexpectedly;
  • if you had a life-threatening or serious illness;
  • if your computer or software failed at the time you were preparing your online return;
  • if HMRC’s online services were disrupted;
  • if you were prevented from filing your return or paying your tax because of a fire, flood or theft;
  • if there were unexpected postal delays;
  • if you have a disability of mental illness that affected the delay;
  • if you misunderstood your legal obligation, or were unaware of it;
  • if someone you’d appointed for the task (e.g. accountant or tax adviser) failed in their obligation on your behalf;
  • and occasionally other reasons which, if genuine, HMRC may deem to be relevant (for example, some Covid-related circumstances).

Excuses that aren’t usually accepted by HMRC include:

  • you didn’t receive a reminder from HMRC;
  • you found HMRC’s online system too difficult to use;
  • your cheque bounced or payment failed due to you having insufficient funds;
  • you made an error on your return.

Appealing Against an HMRC Penalty

You have the right to appeal against HMRC’s decision to issue you a penalty so long as it’s appealed soon enough after the penalty notice. That includes penalties for late tax returns or payments. Taxfile can help advise you about all of that (see below).

Taxfile are Here to Help

If your tax return is late, you owe HMRC tax, or are owed a refund by them, come and see us as soon as possible. Taxfile are accountants and tax advisors in Tulse Hill, South London. We’ll help to sort it all out for you with the minimum of fuss, at a competitive price. Come in as early in the month as you can and we’ll help you to sort things out — for the best possible outcome. We know the rules and liaise with HMRC every single day on behalf of our clients. So, if we can help convince HMRC to reduce or completely remove any penalty you may be facing, we will do so, so long as your circumstances fit the relevant HMRC criteria. You can only appeal within 30 days of the date of any penalty notice you receive, so the earlier you contact us the better – give us a call on 020 8761 8000 or fill in this short form and we’ll take it from there. Alternatively, book an appointment with one of our expert tax advisors to chat things over, without obligation. Payment plans called ‘Time to Pay’ arrangements may also be available for eligible people who cannot to afford to pay their tax in one lump sum — Taxfile would be happy to tell you more.

020 8761 8000 Book Appointment Get Started Here
Capital Gains Tax Hike: A Blow to Investors

Capital Gains Tax Hike: A Blow to Investors

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Capital Gains Tax Hike: A Blow to Investors

October 2024’s Autumn Budget delivered a significant blow to investors with the announcement of increased Capital Gains Tax (CGT) rates. Today, we explore the new rates, how they will affect the sale of assets, and how investors can mitigate their effects.

The New Capital Gains Tax Rates

Effective from 30th October 2024, the basic rate of CGT will rise from 10% to 18%, and the higher rate will increase from 20% to 24%.

What This Means for Investors

These changes will make it more expensive for investors to realise gains from selling assets like shares, bonds, and cryptocurrency. This could lead to a number of consequences, including:

  • Reduced investment activity — investors may be less inclined to sell assets, particularly if they expect to make significant gains;
  • A shift towards tax-efficient investments — investors may seek out tax-efficient investments, such as ISAs and pensions;
  • A greater need for tax planning — investors may require more sophisticated tax planning strategies to minimise tax liabilities.

How Can Investors Mitigate the Impact of the CGT Increases?

Investors have several ways to mitigate the worst effects of the CGT rate increases. They can:

  1. Seek professional advice — a good tax advisor like Taxfile can help investors understand the full impact of the changes and develop a tax-efficient strategy;
  2. Review their investment portfolios to identify the potential tax implications of the new CGT rates;
  3. Utilise tax-efficient investments, for example, through the use of tax-efficient wrappers like ISAs and pensions;
  4. Time investments wisely — carefully timing the sale of assets may help to significantly reduce CGT liabilities.