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Changes will affect companies and some have already come into force.
Various changes have taken place following the passing of the Economic Crime and Corporate Transparency Act, some of which came into force in March 2025.
These included:
Further changes are due to come into force over the next few months:
Identity Verification
Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove they are who they claim to be.
Companies House is introducing identity verification in a phased approach. Over the coming months, they will explain when each of the changes will come into effect and how the identity verification process will work. Nothing needs to be done yet.
From 8 April 2025 individuals can voluntarily verify their identity direct with Companies House or through an ‘Authorised Corporate Service Provider.’
These are individuals or organisations who undertake anti-money laundering (AML) supervised activity.
From 18 March 2025, anti-money laundering supervised firms and sole traders can apply to become ACSPs. ACSPs will also be known as authorised agents.
Alliotts LLP will be registering shortly to become an ASCP.
There will now be penalties for failing to file documents such as annual returns but Companies House will issue a penalty warning notice before any penalty is issued
The company will not receive a financial penalty if they take the required action, within 28 days beginning the day after the date on the penalty warning notice.
For example, if you have received a warning notice for not filing your confirmation statement then if you file your company’s confirmation statement within 28 days of the penalty notice date, you will not receive a penalty.
The purpose of the Economic Crime and Corporate Transparency Act is to crack down on financial crime and improve corporate transparency in the UK and changes introduced through the act will come into force on a staged basis over the coming months.
THE AUTHOR
Director, Audit & Assurance
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