The ECCTA 2023: A UK Accountant’s Guide to Companies House and AML Compliance

The Economic Crime and Corporate Transparency Act (ECCTA 2023) is a significant overhaul of Companies House. The aim is to clamp down on economic crime, and a lot of the corporate transparency and anti-money laundering (AML) compliance responsibilities will fall on the shoulders of accountants, bookkeepers, and small practices. Elements of the Act are already live, with others being phased in through 2026.

The Companies House reforms and implementation have been deliberately phased to give both Companies House and practitioners time to prepare. The Economic Crime and Corporate Transparency Act tackles three core areas:

• Transforming Companies House from a passive repository into an active gatekeeper
• Strengthening identity verification for those who control UK entities
• Tightening the framework around AML compliance.

For accountants, ECCTA 2023 creates new responsibilities around identity verification, digital filing requirements and client due diligence. These changes affect every client you serve – from the smallest micro-entity to established trading companies. What matters now is preparing your practice accordingly…

Companies House Verification

At the centre of the Economic Crime and Corporate Transparency Act is a shift in the role of Companies House (away from its historically light-touch approach). Companies House is becoming an active gatekeeper, with powers to question, reject, remove, and share information on the public register.

ID verification of directors, PSCs and ACSPs

One of the most significant Companies House reforms is mandatory identity verification. All new and existing directors, people with significant control (PSCs), and anyone filing on behalf of a company (i.e. Authorised Corporate Service Providers or ACSPs) will be required to verify their identity with Companies House. From 18 November 2025 (the start of a 12-month transition period), all directors and PSCs must verify their identity with Companies House:

• Verification will be completed either directly via Companies House, or through an Authorised Corporate Service Provider (ACSP), such as an accountancy practice
• New directors appointed after 18 November 2025 must verify before their appointment can be registered
• For existing directors, verification must be completed before filing the company’s next confirmation statement
• PSCs have a 14-day verification window, the timing of which depends on whether they’re also directors and when they were initially registered.

Identity verification requirements

A lot of clients will expect you as their accountant to manage or facilitate Companies House verification, even when this is not currently part of the engagement. You’ll need to decide whether you’re prepared to act as an ACSP and, if so, ensure your own AML registration and internal controls are robust enough to support this role.

The verification process is straightforward:

• Individuals can verify directly through GOV.UK One Login using a biometric passport or UK photocard driving licence, visit a Post Office in person, or use an Authorised Corporate Service Provider
• Once verified, individuals receive a Companies House Personal Code which connects their verified identity to all their registered roles.

Failure by clients to verify their identity will prevent filings and may trigger criminal penalties or restrictions on company activity (potential company strike-off).

The Move to Digital Filing for Company Accounts

Another practical change under ECCTA 2023 is the removal of paper and web-based filing options for annual accounts…

Digital-Only Filing

From 1 April 2027, all companies and LLPs are expected to file accounts using commercial software with full iXBRL tagging – the global standard that makes financial data both human and machine-readable. This is a big shift for smaller practices that have relied on WebFiling or joint filing. The Companies House and HMRC joint filing service permanently closes on 31 March 2026.

The software requirement applies universally – even dormant companies and micro-entities must file digitally. Companies House is also removing the option to file abridged accounts. From April 2027:

• Micro-entities must file both their balance sheet and profit and loss account
• Small companies must include their balance sheet, profit and loss account, directors’ report, and auditor’s report (where applicable)
• Turnover figures, previously combined under gross profit in abridged accounts, will now be visible on the public register for all entities.

The transition is expected to be phased, but firms will need to adapt quickly. Whether you need to adopt compliant software, upgrade existing systems or ensure clients understand the transition timeline, you don’t want to wait until April 2027 to make the necessary changes. These Companies House reforms are designed to improve data quality and enable automated checks, which means errors are more likely to be flagged than quietly accepted.

The Registrar’s Powers

Under the Economic Crime and Corporate Transparency Act, the Registrar has expanded powers to:

• Query any suspicious or inconsistent filings
• Request additional evidence
• Reject information that appears incorrect or inconsistent
• Remove information from the register that seems suspicious or fraudulent

Since May 2024, Companies House can also impose civil financial penalties as an alternative to criminal prosecution. At the end of the day, the aim is to prevent the use of corporate structures for criminal purposes and improve the reliability of publicly available data.

Reporting discrepancies

Accountants also face new expectations around discrepancy reporting. Where information provided by a client conflicts with data held by Companies House, you may have a duty to report that inconsistency to Companies House. This sits alongside your existing AML reporting obligations but operates under a different framework (introduces a new, visible enforcement route through Companies House itself). Understanding when information triggers a reporting requirement – and to which authority – becomes an essential part of your compliance responsibilities.

Anti-Money Laundering Compliance under the ECCTA

While much of the attention on ECCTA 2023 has focused on Companies House verification, the Act’s core purpose is to strengthen the UK’s economic crime framework. That inevitably raises the bar for AML compliance across all professional services.

Preparing for a Stricter Regulatory Environment and Greater Scrutiny

The regulatory environment for accountants is becoming more demanding. With the push towards greater accountability and transparency across the financial and professional services sectors under ECCTA 2023, firms should be reviewing:

• Practice-wide AML risk assessment frameworks
• Client risk profiling and escalation procedures
• Staff training and competence.

Are your procedures still fit for purpose in a world where Companies House actively challenges submissions? Do your engagement terms clearly set out your obligations and limitations around verification work? Are your staff trained to identify the types of discrepancies that now trigger reporting requirements?

ICPA supports members through this shift with practical tools, including the ICPA Documentation Toolkit – this includes an AML Procedures Pack (templates, guidance and client engagement letters). These resources are designed to align day-to-day compliance with the expectations emerging from the Economic Crime and Corporate Transparency Act.

How ICPA Supports Your AML Compliance

ECCTA 2023 is a decisive move towards greater corporate transparency and stronger AML enforcement, and well-prepared practices can use this as a foundation for stronger client relationships and higher-value advisory services. ICPA exists to help members navigate exactly this type of change. ICPA exists to help members navigate exactly this type of change.

Through technical guidance, Advice Lines, AML training and ready-to-use compliance documentation, ICPA provides practical support for independent accountants and small firms navigating the Companies House reforms on their own. With the right systems, proper planning, and access to specialist support through your ICPA membership, you’re well-positioned to turn regulatory change into professional opportunity.