From April 2025 a series of Companies House reforms will start to reshape how every company in the UK submits, updates and verifies its statutory information. For the first time, directors will have to prove who they are before they can act, and – within months – accounts will have to be filed electronically through approved software under a new “file-once” model. These changes sit within the Economic Crime and Corporate Transparency Act and aim to make the register more reliable, close the door on economic crime and improve public trust in corporate data.
The direction of travel is clear. Companies House already receives most documents online, and compliance levels are high: 97.3% of companies met their filing obligations in 2023/24 (Companies House, 2024). Yet the sheer scale of the business population – 2.725 million VAT or PAYE-registered businesses as at March 2024 (ONS, 2024) – means that even small percentages of non-compliance translate into thousands of late penalties and potential strike-offs.
For finance directors, company secretaries and practice owners, 2025 is the year to tighten processes, review software and brief boards on their new legal duties. The following guide explains the key elements – digital filing, identity verification and late-filing penalties – and sets out practical steps you can take now to stay ahead of the rules and protect your business record.
Why the Companies House reforms matter this year
The reforms do much more than modernise an ageing registry. They:
- Increase transparency: Mandatory identity verification will deter fraudsters and make it harder to hide beneficial ownership.
- Streamline reporting: The file-once system will allow companies to send one accurate digital data set that can flow to HMRC and other regulators, reducing duplication.
- Raise the stakes for directors: Non-compliance could lead to personal prosecutions, civil penalties or the public embarrassment of a compulsory strike-off.
Companies House imposed £34.4 million in late filing fines on private companies in 2023/24 – up 240% on 2019/20 – and the maximum penalty of £3,000 was handed out to 11,463 companies (Financial Times, 2025). With digital systems able to flag late accounts immediately, the cost of missing a deadline is only likely to rise.
The ‘file-once’ system: a single touchpoint for corporate data
Under file-once, every company will send its accounts in iXBRL format through accredited software, and Companies House will share relevant fields with HMRC and, in time, other agencies. Key points to note:
- Mandatory software filing will begin for periods ending on or after 1 January 2026, but early adoption in 2025 will smooth the transition.
- Paper and PDF uploads will be phased out. If you currently rely on WebFiling or postal submissions you will need new tools.
- Validation checks will occur before submission, so errors that historically slipped through will now be blocked in real time.
Forward planning:
- Conduct an early systems audit: Confirm your accounting platform can export the required iXBRL tags.
• Map your workflow: Decide who will prepare, tag, review and approve filings, and build realistic sign-off timelines.
• Budget for software licences and potential staff training.
Identity verification: What directors need to do
Voluntary identity checks went live on 8 April 2025; they become mandatory for new incorporations in autumn 2025 and for existing directors and persons with significant control (PSCs) at their next confirmation statement date in 2026. Verification can be completed either:
- Directly through GOV.UK One Login, or
- Via an authorised corporate service provider (ACSP) such as an accountancy firm that has registered with Companies House.
Key requirements:
- Each director, PSC and filing agent must hold a verified digital account: no account, no filing privileges.
• Verification involves a liveness test and matching an ID document to government records; the process takes minutes but relies on up-to-date passports or photocard licences.
• Companies must maintain records of who has verified and report any changes promptly.
Detailed guidance is available on the GOV.UK site (Companies House identity verification).
Software-only accounts: Build the right finance tech stack
Accounts prepared in Word or Excel and converted to PDF will no longer cut it. To avoid last-minute scrambles:
- Check your existing accounting software: Most cloud platforms already output iXBRL-ready accounts, but desktop suites may need an add-on.
• Verify tagging accuracy: Incorrect iXBRL tags can trigger rejections – run test filings well before your first live deadline.
• Integrate with tax: HMRC’s Making Tax Digital rules favour end-to-end digital records. A joined-up system will reduce duplicate data entry and support file-once.
If you need a new solution, our company secretarial service can recommend compliant platforms and manage implementation.
Five steps to avoid late-filing penalties
Penalties for a private company remain at £150 for accounts up to one month late, rising to £1,500 for delays over six months, and doubling if you miss deadlines two years running. Avoid fines by adopting the following:
- Calendar discipline: Enter statutory deadlines – accounts, confirmation statement, PSC updates – into a shared diary with automated reminders.
- Early drafts: Aim to finalise management accounts within four weeks of year-end so that tagging and external audit have breathing space.
- Director briefings: Ensure the board understands that identity verification is now a legal requirement, not a formality.
- ACSP partnership: If you expect directors to struggle with GOV.UK One Login, appoint an ACSP (for example, us) to handle verification and filings on their behalf.
- Post-filing checks: Download the receipt and check Companies House has accepted the document; resolve any rejection within 14 days to avoid the penalty clock restarting.
Supporting you through the Companies House reforms
The Companies House reforms herald the most significant shake-up of corporate reporting in a generation. They are good news for honest businesses – greater data integrity should strengthen market confidence – but they demand careful preparation. By upgrading software, completing identity checks early and embedding stronger governance, you will turn a compliance exercise into an efficiency gain.
We work with companies from micro-entities to multinational groups, providing year-round support, ACSP registration and a full outsourced filing service. If you would like a health check on your current processes or hands-on help implementing file-once, contact our dedicated team today. We will ensure you meet every deadline and stay compliant while you focus on growth.