Companies House will require identity verification for anyone involved in running or filing on behalf of a company

The Economic Crime and Corporate Transparency Act (ECCTA), which became law in October 2023, has created a raft of new measures affecting companies and their directors.

Identity Verification is a new legal requirement under the ECCTA. This means that Companies House will require formal identity verification for anyone involved in running or filing on behalf of a company.

In the first of a series of articles we look at what the implications are for business owners and directors.

By law you will need to verify your identity if you are:

• a director
• the equivalent of a director – for example, a managing officer
• A PSC (Person of Significant Control) – someone who owns or controls a company
• Someone who files for a company, such as a company secretary

When you need to verify varies depending on your role. Directors are required to provide their personal verification code in the company’s next confirmation statement after November 18, 2025.

A PSC, who is not a director, will need to verify within 14 days from the start of their birth month.

Individuals can verify their identity through several different means, including through accountancy and law firms registered as ACSPs – however, we cannot do this without co-operation from the individuals concerned.

One way is by using the ‘Verify your identity for Companies House’ service, which uses a Gov.uk One login to verify the identity across all UK government services online or through the Gov.uk One app available on Apple and Google.

There are some simple questions to find the best way to verify the user’s identity. Depending on the answers, ID can be verified using the app, by answering security questions online, or by entering details from a photo ID online and getting verification in person at a participating Post Office.

It will be an offence not to comply with the new ID verification requirement. Penalties could be charged for non-compliance once the system is up and running.

As an indication, the penalty for failure to file accounts on time ranges from £150 to £750 depending on company size.

If the ID procedures are not completed, companies will not be able to file their confirmation statements leaving them open to penalties and further action by Companies House.

It is understood that no documents will be filed at Companies House if the identification procedures for all directors and PSC’s have not been completed.

How to verify your ID

You can complete the ID verification yourself via GOV.UK, Verify your identity for Companies House, or in person at some Post Offices.

When you have completed the process, you will need to provide WNJ with your identity verification code to enable us to continue filing for your company.

Please email this to us at acsp@wnj.co.uk, giving details of the company/companies with which you are involved.

• If you have any questions, please contact us by email acsp@wnj.co.uk or call the office on 01772 430000 and ask to speak to the company secretarial team.

Mark Gibbons is Funding and Partnership Manager at Rosebud, which is part of Lancashire County Council’s Business Growth Service. Rosebud provides growth support and business loans for growing businesses based in the county.

Through its range of financial and growth support services Rosebud enables businesses across Lancashire to innovate, diversify and expand.

Mark says: “There is a well-worn saying in business that ‘fail to prepare, prepare to fail’ – and nowhere is that truer than when seeking funding.

“For any business considering funding, preparation is the single most important step towards success. Lenders and funders alike want to see that a business has done the groundwork and is clear about both its needs and its future plans.”

Define the need

The first step is to understand exactly what the funding is for. Being precise about the requirement and building in a contingency will not only strengthen the case for support but also demonstrate a clear focus on return on investment.

Select the funding fit

Equally important is considering the most suitable form of borrowing.

Overdrafts, term loans and asset-backed working capital facilities all offer different advantages depending on the circumstances, so identifying the right structure early on will save time and ensure a better fit.

Show commitment

Funders and lenders also look to see what commitment the directors and shareholders are making. The introduction of additional capital from within the business helps de-risk the opportunity and provides reassurance that the management team is prepared to back its own growth ambitions.

Prepare financials

Having up-to-date financial information readily available is another crucial step. Not only does this reduce delays in obtaining a credit-backed decision, it also builds confidence with the lender.

Accurate figures show professionalism and attention to detail, both of which give weight to the business case.

Expect due diligence

Alongside this, management should be ready to answer questions on performance and outlook. This is an essential part of a lender’s due diligence process and should not be seen as a negative sign. It is simply their way of getting to know the business in depth and identifying any potential issues at an early stage.

Tell the story

Numbers alone rarely tell the full story. It is important for business leaders to provide context, especially if there have been challenging periods or more recent improvements. Framing the financials within the broader narrative of the company can bring the application to life and help decision makers see the resilience and potential of the business.

Seek support

Finally, seeking support through the process can make all the difference. Accessing the right support ensures that opportunities are not missed and that the case presented is as strong as possible. With careful preparation, clarity of purpose and the right guidance, businesses put themselves in the best position to secure the funding they need to move forward with confidence.

Mark says: “Preparation is key. Lenders want to see that you have a clear plan for growth and a robust understanding of your financial position. Before applying for funding, businesses should ensure they have strong financial systems in place, up-to-date accounts and clear cashflow forecasts. Demonstrating consistent revenue growth, profitability – or a clear pathway to profitability – can significantly strengthen your application.

“It’s also important to assess whether the timing is right. Debt finance works best when it is used for momentum, not to solve fundamental business problems, cash flow issues or to get your business off the ground. Can you clearly show that funding will generate increased revenues to service new debt?

“I would also say, look at what services are available to support you and chose the best fit for you. Rosebud, for example, specialises in Lancashire only. We have a proud track record of backing businesses that have gone on to scale into multi-million-pound operations – and even take on the business moguls in the Dragons’ Den!

“When preparing to apply, treat the process as seriously as raising investment. You’ll need a solid business plan, detailed financial projections and evidence of good governance and a strong management team. Think about how you’ll communicate your growth story and prove that the business is able to responsibly manage and utilise additional borrowing.

“Finally, don’t overlook the additional support available. Alongside funding, Rosebud provides access to valuable networks, strategic advice and resources that can all support business growth.”

• To explore how Rosebud can support your business on its growth journey, visit https://bit.ly/rosebudbusinessgrowth

Homebuyers are being warned to avoid Stamp Duty Land Tax scams following a landmark Court of Appeal decision.

HMRC is calling on people purchasing properties to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on their behalf where repairs are needed to a property they have bought.

Some agents have suggested that, for a fee, they can reclaim SDLT the buyer has already paid by saying that the property is non-residential, because it’s uninhabitable.

However, HMRC warns that making claims of this kind often leave the homeowner liable for the full amount of SDLT, plus penalties and interest.

A recent Court of Appeal judgment has confirmed that housing in need of repair is chargeable at the residential rates of SDLT, and that repayment claims based solely on a property’s condition are not valid.

HMRC says the decision confirms its long-standing view that if a property requires repairs but retains the fundamental characteristics of a dwelling, it is still suitable for use as a dwelling and attracts residential rates of SDLT.

A key factor in determining suitability is whether a property had been previously used as a dwelling.

HMRC now says it is taking decisive action on spurious SDLT repayment claims, using civil and criminal powers to deal with the minority who undermine the tax system.

Anthony Burke, HMRCs deputy director of compliance assets, said: “The Court of Appeal’s decision is a major win, protecting public funds.

“Homebuyers should be cautious of allowing someone to make a Stamp Duty Land Tax repayment claim on their behalf. If the claim is inaccurate, you could end up paying more than the amount you were trying to recover.”

Anyone who is unsure of the rules should check the SDLT guidance on GOV.UK.

Lancashire businesses are being urged to take advantage of a fully funded service that helps them navigate, identify and access the most relevant business support available.

The call comes from Boost; Lancashire’s Business Growth Hub, after latest figures reveal that more than 2,000 businesses have received assistance through the service since September 2023.

Between September 2023 and March 2025, Boost, which is led by Lancashire County Council, assisted 2,108 businesses.

This included direct support through Boost’s own programmes, guidance on accessing finance and referrals to regional and sector-specific support schemes.

Around two thirds of these businesses have never previously received Boost support.

The support has also led to the creation of more than 230 new jobs, while enabling the launch of over 30 new businesses, and supporting over 150 entrepreneurs planning to start a business.

In the same period, Boost helped businesses secure over £4million in funding offers through various finance providers.

Established in 2013, Boost is one of 38 Growth Hubs across the UK, and continues to play a key role in Lancashire’s economic development.

County councillor Brian Moore, cabinet member for Economic Development and Growth at Lancashire County Council, said: “Lancashire, like the rest of the UK, continues to experience a fast-moving and dynamic business landscape. We’re seeing many businesses in growth mode, while others are navigating ongoing uncertainties.

“Throughout it all, Lancashire County Council remains committed to backing our business leaders and entrepreneurs.

“It’s encouraging to see more businesses turn to Boost for support. We know there are many more who would benefit from the valuable service it offers. They must get in touch.”

Speaking about the latest results, Andrew Leeming, Boost programme manager, said: “Whatever the challenge or opportunity, Boost is in the corner of business leaders, and we are now widely recognised as a trusted business support partner. We’re proud to see more companies turning to us as a first port of call.

“While we deliver direct support programmes at certain periods of the year, the core purpose of the Growth Hub is helping businesses identify and access the right support at the right time, for their specific needs.

“Our dedicated business helpdesk team have over 12 years helping businesses navigate the business support landscape.

“Despite a changing support landscape, there remains a wealth of high-quality help available, and I strongly encourage business leaders to speak with our team to tap into this support.”

• To discuss how WNJ can help your business on its growth journey please contact me on 01772 430000

With employers finding it hard to recruit good skilled workers and both the inflationary and government-imposed increases to staff costs, there are many advantages to taking on an apprentice.

With the increase in minimum wage being so much higher than inflation, many employers may be put-off employing young people.

And understandably, an 18 per cent increase for 16-17-year-olds and 16.3 per cent rise for 18-20-year-olds, who will not have much experience, may reduce the opportunities for the next generation to gain the experience needed to progress.

However, there are many reasons why employers should look to offer these age groups an opportunity and an apprenticeship might be the ideal way.

The benefits of taking on an apprentice include the opportunity to develop skills according to needs of the business. If you’ve spotted skill gaps or areas of potential, you can use an apprenticeship scheme to train up new employees in these areas from day one.

Going down the apprenticeship route is a good way of attracting new talent. Apprentice outputs usually surpass their associated costs to the employer, delivering a net benefit to during their training.

Apprentice outputs usually surpass their associated costs to the employer. The Federation of Small Businesses says the estimated yearly gain for employers in the UK is between £2,500 and £18,000 per apprentice during their training period.

Apprentices are eager to learn and are enthusiastic about the qualification they’ve chosen and they can bring new perspectives to your business, especially if they are younger and familiar with new technologies.

Going down the apprenticeship route can also be a way of reducing staff turnover and recruitment costs. And giving a young person the chance to develop will also improve your company’s image.

There are financial benefits to hiring apprentices, including financial assistance with the cost of training.

Depending on your business size and eligibility, most apprenticeship training costs are either fully or partially (95 per cent) funded by the government, helping you to upskill your team on a budget.

Also, there is no National Insurance to pay for someone under-25, if the salary is under £50,270.

It is important to remember that when hiring an apprentice, employers must use the correct apprenticeship agreement, rather than using a standard contract of employment.

• To discuss any issues raised by this article please contact me on 01772 430000