Following the first few convictions by the Insolvency Service, directors are being urged to verify their identities to avoid prosecution.
With the 12-month transition period ending on 17 November, directors should act now to avoid fines and criminal liability.
What has changed?
Since November 2025, all directors and Persons with Significant Control (PSCs) must comply with Companies House’s new Identity Verification (IDV) requirements.
Once verified, individuals are given a unique identifier code, also known as an IDV or verification code, which must be submitted to Companies House with Confirmation Statements and other necessary filings.
IDV requirements are built to ensure those who are writing their names on forms and registering for a company link their physical identity to their corporate roles.
When enforcing these legal requirements, the tools in the arsenal of Companies House include disqualifications, fines of up to £2,000 and even criminal prosecution.
Of course, punishments are not uniform and depend on factors such as severity of the non-compliance and whether the entity/individual is a repeat offender.
The first prosecutions
In September 2026, the Insolvency Service announced it has successfully prosecuted directors who haven’t verified their identity.
Both directors of White (Reading Properties) were fined at City of London Magistrates’ Court on 16 September after completing verification nine months late.
While the co-director had verified on time, he too was prosecuted for not taking reasonable steps to stop his partner acting as a director while unverified.
This case is significant as it demonstrates Companies House is taking enforcement action seriously.
In addition, it shows that every director has a responsibility to ensure the rest of the board is verified and that compliance is not decided on an individual basis.
While the fines were modest, amounting to less than £500 collectively, criminal prosecution for company directors can have lingering reputational repercussions.
What should directors do now?
With the end of the transition period rapidly approaching, directors must begin checking that identities have been verified and confirm that personal codes have been verified for each role.
If you are using an agent or secretarial firm to handle filings, you should get in contact to ensure they have your personal code.
For new directors joining the company, identity verification should become an integral part of the onboarding process to ensure it isn’t forgotten.
Considering the intentions the Insolvency Service has demonstrated, full enforcement action will commence after the transition window closes.
Yet to verify director identities? Reach out to our ACSP-registered accountants for guidance.
