How do the Companies House reforms affect my business?

With the Companies House reforms well under way, it can be hard to keep up with all the new requirements. We look at the key changes affecting small and micro-entity companies and how to stay on the right side of the new rules.

Why are the changes happening?

Successive governments have been keen to maintain the UK’s reputation as a good place to do business whilst cracking down on ways in which UK companies can be used fraudulently or to mislead. The Economic Crime and Corporate Transparency Act 2023 (the Act) was drafted with this in mind. It gives Companies House new powers and responsibilities to ensure the register is transparent, accurate and trustworthy.

The objectives of the Act include:

1. Ensuring documents are filed on time
2. Improving the accuracy and completeness of the register
3. Preventing the register from misleading the public
4. Stopping companies from facilitating unlawful activities

New powers for Companies House

Companies House has new powers and is bringing in new rules for companies.

These include:

• ID verification
• gatekeeping company creation
• more effective enforcement
• technological advancements
• making clearer financial information available
• removing false or suspicious information from the register

What rules have already changed for companies?

The first rule changes began on 4th March 2024, with more introduced at intervals since then.

1. Registered office address must be appropriate – PO Boxes are no longer acceptable. Companies House will change any inappropriate addresses it finds to a default address, and if not updated within 28 days, will start strike off procedures. You can change your company’s registered address here.
2. Provide a registered email address – new companies must do this on incorporation and existing companies when filing your next confirmation statement.
3. Statement of lawful purpose – new companies must do this on incorporation and existing companies on filing their confirmation statement. The statement will confirm the company’s intended activities are lawful.
4. Higher fees for incorporation and other filings – Companies House fees have increased to help pay for their increased monitoring and enforcement duties. They are due to increase again on 1st February 2026 as follows:

	Online	Software	Paper	Same Day
Incorporation	£100	£100	£124	£156
Confirmation Statement	£50		£110
Redact home address from filings			£34

What is happening now? 

People with Significant Control 

HMRC sent letters to People with Significant Control (PSCs) to ask if they have declared income and gains related to the company for the 2023/24 tax year.  

These letters have been sent where HMRC has reviewed PSC information from Companies House and believes the PSC either has: 

• errors in their filed self-assessment tax return, or  
• has not filed a self-assessment tax return at all, and HMRC are querying why. 

ID verification 

Voluntary ID verification for company directors and PSCs opened on 8th April 2025 and mandatory ID verification began on 18th November 2025, with a transition year to get everyone within the ID verification rules approved by 18th November 2026. 

You must have your ID verified if you are a company director or PSC when first incorporating a company, being appointed director or PSC, or filing the confirmation statement. You can do this online with a passport or driving licence, at a Post Office or through a Companies House authorised corporate service provider (ASCP). 

Central register abolished and other register changes  

The Central Register was abolished for secretaries, directors and PSCs on 18th November 2025 and for members on 26th January 2026. Instead, you will need to create a register of members to hold in-house and file a one-off full list of shareholders with your next confirmation statement. 

Further changes expected

Companies House had previously stated that the start date for several reforms would be 1st April 2027. However, on 28th January 2026 there was a further announcement that changes related to filing company accounts would be postponed and a new deadline has not yet been published. At least 21 months’ notice will be given of any new deadline.   

These reforms will include: 

• Online company accounts and tax return service now closed –  the online company accounts and tax return service closed on 31st March 2026.
• Software only filing for Companies House documents – previously due to come into force from April 2027, this deadline has been deferred and no new date has been announced as of yet.
• Changes to micro-entity accounts – abridged or filleted accounts will no longer be accepted. Micro-entities will file a profit and loss statement and, if claiming an audit exemption, directors must confirm eligibility, and which exemption is claimed in addition to the balance sheet already required. Like software only filing, this was due to start from April 2027 but has been delayed and we are awaiting a further announcement.
• Changes for small company accounts – small companies will file the documents listed for micro-entities plus a director’s report and an auditor’s report unless exempt.
• Accounting reference periods shortening – to prevent perceived misuse (claiming extra filing time by reducing the period by a day) companies will be allowed to shorten their reference periods less frequently – possibly once every five years, to match the cap on increasing the period.

How TaxAssist Accountants can help

If you need help understanding these changes, we can work with you to ensure that you are doing everything by the book and talk you through software options from trusted partners we work with. Call us today on 0203 859 0589 or contact us and we will get back to you. 

Last updated 19 May 2026 | First published 21 May 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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