Companies House Reforms and Digital Filing Explained

The board signed off on the annual confirmation statement. The numbers were accurate. The directors believed everything had been filed correctly.

Two weeks later, Companies House queried the PSC information. One individual had not completed identity verification. The filing was now non-compliant. The company faced potential criminal exposure, and the director responsible was personally at risk.

Under the previous system, this would likely have resulted in a correction and a late filing penalty. Under the Economic Crime and Corporate Transparency Act 2023, it carries far greater consequences.

The UK is moving from a passive record-keeping model to an actively supervised, digital-first transparency regime. Companies House is no longer simply recording what it receives. It is assessing, querying, and, where necessary, rejecting information.

For boards and governance professionals, this is not a technical update. It reshapes accountability, director exposure, and the standard of evidence behind every filing.

The era of routine submissions is ending. The era of verifiable transparency has begun.

What Is the Corporate Transparency Act?

There is no standalone “Corporate Transparency Act” in UK legislation. The term commonly refers to the Economic Crime and Corporate Transparency Act 2023 or ECCTA, which reforms Companies House powers, introduces identity verification, and reshapes company filing obligations.

The Act forms part of broader economic crime legislation designed to improve the integrity of the corporate register. It gives Companies House new statutory objectives, including ensuring information is accurate, preventing misleading impressions, and reducing the misuse of corporate entities.

The Law Society has described the reforms as transforming Companies House from a passive repository of documents into a more active gatekeeper of corporate integrity.

For directors, this represents a clear shift. Filing is no longer a box-ticking exercise. Information can now be queried, rejected, or removed without a court order.

As Jerri-Lea Brown, Founder of Sage Governance, explains: “These reforms shift the emphasis from submitting documents to standing behind them. Boards must be confident that every filing is accurate, verified, and defensible.”

How PSC Registers Are Being Reformed

The register of people with significant control, introduced in 2016, is being fundamentally restructured. The latest PSC register changes UK are designed to eliminate gaps between internal records and the public register, ensuring that beneficial ownership information is both verified and current.

From November 2025, companies will no longer maintain separate local registers for directors, secretaries, and PSCs. Companies House will hold the central, authoritative record. Changes must be filed within 14 days.

The most significant development is mandatory identity verification. Directors, PSCs, and certain individuals who file on behalf of companies must verify their identity through GOV.UK One Login or authorised service providers. Official instructions are set out in Companies House identity verification guidance.  

This change moves PSC compliance from an annual administrative task to an ongoing governance obligation.

Failure to verify identities or submit accurate information can result in criminal offences, including fines and potential imprisonment. Companies House now has the authority to challenge information that appears inconsistent or misleading.

For boards, the focus must shift from maintaining a register internally to ensuring that what appears on the public register is accurate, current, and properly evidenced.

Companies House and the Shift to Digital Filing

Alongside register reform is the move to mandatory digital filing. This phase of Companies House reform digital filing marks a structural shift in how corporate information is submitted, reviewed, and stored, moving entirely to software-based, traceable submissions.

Under the Companies House reform programme, paper submissions will end by April 2027. All accounts will need to be filed using approved commercial software.

Small and micro-entities will be required to file full accounts, including profit and loss statements, for periods ending on or after July 2026. This marks a significant change for companies previously able to submit abridged information.

The Companies House blog continues to publish phased updates on implementation and enforcement.

This transition is more than technological. Digital submissions create traceable audit trails. Errors are easier to detect. Registrar intervention is faster.

As Jerri-Lea Brown notes: “Digital filing increases transparency, but it also increases exposure. Boards must ensure their internal controls are robust before the submit button is pressed.”

Statutory Registers: What’s Changing for Businesses

The reforms remove the obligation to maintain certain local statutory registers, including those for directors, directors’ residential addresses, secretaries, and PSCs.

However, companies must still maintain a register of members under the Companies Act 2006. Historic shareholder information must be retained for up to ten years.

While this simplifies internal administration, it increases direct reliance on the accuracy of information filed at Companies House.

Recent enforcement activity under existing filing rules has already shown a tougher regulatory approach to late accounts and inaccurate confirmation statements. The new framework strengthens those powers considerably, allowing the registrar to act more swiftly and independently.

For governance professionals, this means register management is no longer an internal administrative function. It is a matter of regulatory exposure.

Compliance Steps Companies Should Take Now

Boards should not wait until final deadlines approach.

Practical steps include:

1. Conducting a full audit of director, PSC, and shareholder information

2. Completing identity verification well ahead of mandatory deadlines

3. Reviewing digital filing readiness and accounting software compatibility

4. Strengthening internal review and sign-off processes before submission

5. Briefing directors on expanded personal liability under the new regime

The shift is cultural as much as procedural. Governance systems must move from reactive correction to proactive accuracy.

Sage Governance supports organisations through corporate governance advisory and outsourced secretarial services, helping boards review statutory records, implement stronger internal controls, and align governance processes with the new regulatory framework.

What These Reforms Mean for Corporate Governance

The Economic Crime and Corporate Transparency Act raises the standard of corporate governance across the UK and strengthens the framework of corporate transparency UK law.

Directors now operate within a regime that includes enhanced scrutiny over filed information, criminal liability for misleading statements, and a new “failure to prevent fraud” offence effective from September 2025.

Companies House has been given expanded enforcement powers to query, reject, and remove information without court intervention. This significantly alters the risk profile of routine compliance activity.

Transparency is no longer assumed. It must be demonstrable.

Boards that approach these reforms strategically will strengthen trust and resilience. Those that treat them as minor administrative updates may find themselves exposed.

If your organisation is reviewing its statutory registers, preparing for digital filing, or strengthening governance processes in light of the Economic Crime and Corporate Transparency Act, Sage Governance can help you implement structured, defensible systems that stand up to scrutiny.

FAQs

When does digital-only filing become mandatory?

From April 2027, all companies must submit accounts digitally using approved commercial software.

Do companies still need to maintain their own PSC register?

No. PSC data must be filed and maintained directly with Companies House, although the register of members must still be kept locally.

What are the risks of inaccurate filings?

Inaccurate or misleading filings can lead to fines, criminal liability, and possible director disqualification under the Economic Crime and Corporate Transparency Act 2023.