ECCTA 2023: What UK Directors and Small Businesses Must Know from Autumn 2025

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) marks a major shift in UK company law. Starting from autumn 2025, company directors, small businesses and filing agents will face tighter rules on identity verification and financial reporting. These changes aim to increase corporate transparency and reduce economic crime.

Identity Verification Will Be Mandatory

From autumn 2025, Companies House will enforce a phased rollout of compulsory identity checks for directors, PSCs (persons with significant control), and anyone submitting documents to the register.

Key ID Verification Milestones

• Autumn 2025 – All new directors and PSCs must verify their identity at appointment
• Autumn 2025 to Autumn 2026 – 12-month transition for existing directors and PSCs to complete verification (via annual confirmation statement)
• Spring 2026 – ID verification required for anyone submitting documents, including accountants, lawyers, and agents
• End of 2026 – Full enforcement of identity rules, with compliance activity starting

These steps will enhance trust in the register and clamp down on fraudulent appointments.

Significant Reforms to Company Accounts

Although a formal date is yet to be set, ECCTA outlines radical accounting changes. Once enacted, all companies—regardless of size—must follow stricter rules.

What’s Changing?

• All companies must file a profit and loss account
• Small and micro companies must stop using abridged accounts
• Submission must be made through software-only filing
• Small companies must file a directors’ report
• Audit exemptions must include a clear statement from directors
• Limits will apply to how often a company can shorten its accounting reference period

These changes are designed to boost transparency, improve financial accuracy, and modernise the filing process.

Protection of Personal Information

From summer 2025, directors and individuals will be able to request the suppression of sensitive personal details from historical records. This includes:

• Date of birth
• Signatures
• Business occupation
• Residential addresses (in most cases)

This is part of the government’s drive to balance transparency with personal privacy and safety.

What MCC Clients Should Do Now

We recommend that our clients start preparing for these reforms as early as possible:

• ✅ Review your director and PSC records – ensure all information is current and verifiable
• ✅ Prepare for digital filing – move to a software-based accounting system if you haven’t already
• ✅ Understand the new financial disclosures – especially if you're a small or micro company
• ✅ Engage with MCC Accountants – we can guide you through the changes and ensure full compliance

Book Your Free Consultation

Don’t wait until the last minute—speak with our team today to find out how the ECCTA reforms will affect your business. We’re here to simplify the complex and support your business every step of the way.

Book your free consultation now