From April 2025, Companies House will introduce major changes to company filing, compliance, and transparency rules as part of its ongoing reform efforts. These updates are designed to improve corporate accountability, reduce financial crime, and modernise the way UK companies report information.
For businesses, company directors, and accountants, understanding these changes is crucial to ensure compliance and avoid penalties. In this article, we’ll explore what’s changing, why these updates are happening, and what businesses need to do to prepare.
Why Are Companies House Rules Changing?
The changes are part of the Economic Crime and Corporate Transparency Act, which aims to:
- Enhance business transparency by improving the accuracy and accessibility of company data.
- Strengthen fraud prevention by reducing the risk of UK companies being used for financial crime.
- Improve compliance monitoring by giving Companies House more powers to query suspicious filings and reject incorrect information.
- Modernise reporting requirements to reflect the digital-first approach of UK business regulation.
These reforms align with the government’s broader strategy to increase corporate accountability and tackle misuse of UK companies for activities such as money laundering and tax evasion.
Key Companies House Changes from April 2025
1. Identity Verification for Company Directors and Shareholders
One of the biggest changes is the mandatory identity verification for:
- Company directors
- Persons with Significant Control (PSCs)
- Shareholders (for new company formations)
How will this work?
- New directors will need to verify their identity before appointment.
- Existing directors must verify their identity within a set period after the changes take effect.
- Identity verification will be done via Companies House or an authorised third-party agent (such as an accountant or solicitor).
This change aims to reduce fraudulent directorships and prevent the registration of companies under false identities.
2. Stronger Powers for Companies House to Query and Reject Filings
From April 2025, Companies House will have greater powers to query, reject, or remove information that appears incorrect, fraudulent, or misleading.
What does this mean for businesses?
- Companies House can challenge company filings that seem inconsistent or inaccurate.
- Incorrect financial accounts or annual confirmation statements can be rejected or removed.
- Businesses will need to ensure accuracy when filing company records to avoid penalties.
Key action: Directors and accountants should double-check filings before submission to avoid delays or compliance issues.
3. New Filing Requirements for Small and Micro Businesses
Currently, small and micro businesses can file simplified accounts, but from April 2025, new rules will require:
- A profit and loss account to be filed for all companies – removing the option for “abridged” accounts.
- More financial information to be publicly available – increasing transparency.
- Small companies to include a directors’ report – currently, they are exempt.
These changes aim to increase corporate accountability and provide greater financial transparency for lenders, suppliers, and stakeholders.
Who is affected?
- Small businesses: Those with turnover under £10.2 million, fewer than 50 employees, and a balance sheet under £5.1 million.
- Micro businesses: Those with turnover under £632,000, fewer than 10 employees, and a balance sheet under £316,000.
Key action: Small business owners should review their financial reporting processes and consult their accountants to ensure compliance.
4. Tougher Rules on Registered Office Addresses
To reduce fraud and the misuse of company addresses, all companies must:
- Have a real, physical registered office address where official documents can be delivered and acknowledged.
- Stop using PO Boxes as their primary registered address.
- Ensure that their registered address is “appropriate” – meaning that directors or representatives have legal access to it.
If Companies House finds a company using an inappropriate address, it can be struck off the register.
Key action: Businesses should review their registered address and update it if necessary.
5. Greater Transparency for Shareholders and Persons with Significant Control (PSCs)
To improve transparency, from April 2025, Companies House will:
- Require more details about shareholders at the time of company formation.
- Make PSC (Person with Significant Control) information more detailed and subject to verification.
These changes aim to prevent ownership concealment, making it harder for individuals to hide behind anonymous shareholdings.
Key action: Businesses should ensure that shareholder information is accurate and up to date in Companies House records.
6. New Rules for Company Names and Filings
Companies House will crack down on misleading company names to prevent fraud.
- Names that could mislead the public about the company’s purpose or legal status will be rejected.
- Companies House will have powers to force name changes if they breach the new guidelines.
Additionally, failure to keep accurate records or submit timely filings could result in:
- Heavier penalties for non-compliance.
- Increased scrutiny of directors with a history of poor filing practices.
Key action: Businesses should review their company name and filings to ensure compliance with new regulations.
How Should Businesses Prepare for the Changes?
- Verify director and PSC details – Ensure that all directors and significant shareholders are ready to complete identity verification.
- Review filing practices – Double-check all financial statements, shareholder records, and company details to prevent errors.
- Prepare for increased reporting for small businesses – If you run a small business, consult with an accountant about the new profit and loss filing requirements.
- Ensure your registered address is compliant – If using a virtual office or PO Box, ensure your company address meets the new criteria.
- Stay updated with Companies House communications – Companies House will likely issue further guidance and timelines before the April 2025 deadline.
Why These Changes Matter
The April 2025 Companies House reforms mark the biggest shake-up in corporate reporting in years. These updates will create more transparency, reduce fraud, and improve data accuracy within the UK business sector.
While many of these changes add new compliance responsibilities, they also present opportunities for businesses to strengthen governance, improve financial reporting, and build trust with stakeholders.
By acting early and ensuring compliance, businesses can avoid penalties and position themselves for long-term success under the new Companies House regulations.
For more advice on how these changes impact your business, speak to our expert accountants today.