A records revolution
David Menzies CA, Director of Practice, details the radical overhaul of the Companies House registration processes
A records revolution
David Menzies CA, Director of Practice, details the radical overhaul of the Companies House registration processes
Companies House is about to revolutionise its approach to the way it maintains its records – and practices need to act now to be sure they are prepared.
The Economic Crime and Corporate Transparency Act 2023 has given the Registrar of Companies a range of new powers and measures in relation to entities and their interactions with Companies House. This is part of a package of measures aimed at curtailing false and misleading information and the use of entities as a front for economic crime.
More detailed information on this and the transition plan is available on gov.uk. However, of immediate interest to accounting practices are two separate but related matters – identity verification (IDV) and authorised corporate service providers (ACSP).
IDV will require all existing and new directors, officers and persons with significant control (individuals) to have their identity verified and a unique ID number assigned to them. This is a massive task, with more than 7.5 million people having to go through the IDV process. This will apply to all companies (including incorporated charities), limited liability partnerships and limited partnerships (entities) required to register with Companies House.
“Firms should be acting now in relation to these changes”
From 25 March, individuals will be able to carry out IDV on a voluntary basis. From a date still to be confirmed, but expected this summer or autumn, IDV will become mandatory. The mandatory provisions will have a 12-month transition period. IDV will become effective immediately for new incorporations, with a deadline for existing entities aligned with the date of their confirmation statement.
Individuals will be able to carry out their IDV either directly with Companies House or through an ACSP, which is a third-party service provider registered with Companies House to provide IDV services. ACSPs will also be known as Companies House authorised agents. They must be AML-supervised and are likely to include accountants, solicitors and incorporation agents among others.
The service for ACSPs to register with Companies House will open soon and costs £55. ACSPs will be able to carry out and submit IDVs from 25 March. While only those providers that plan to offer IDV services are required to register at this time, in the future, third-party providers who file information (such as accounts, confirmation statements and other forms) on behalf of others will also need to register.
Firms should be acting now in relation to these changes. This can include working out which clients will be impacted by IDV and considering how you might inform and prepare them. Firms should also consider whether they wish to become an ACSP or not. We have more detail on both these measures, and the action that firms might wish to consider, in the two articles available below.
Read more about identity verification and becoming an ACSP
Companies House is about to revolutionise its approach to the way it maintains its records – and practices need to act now to be sure they are prepared.
The Economic Crime and Corporate Transparency Act 2023 has given the Registrar of Companies a range of new powers and measures in relation to entities and their interactions with Companies House. This is part of a package of measures aimed at curtailing false and misleading information and the use of entities as a front for economic crime.
More detailed information on this and the transition plan is available on gov.uk. However, of immediate interest to accounting practices are two separate but related matters – identity verification (IDV) and authorised corporate service providers (ACSP).
IDV will require all existing and new directors, officers and persons with significant control (individuals) to have their identity verified and a unique ID number assigned to them. This is a massive task, with more than 7.5 million people having to go through the IDV process. This will apply to all companies (including incorporated charities), limited liability partnerships and limited partnerships (entities) required to register with Companies House.
“Firms should be acting now in relation to these changes”
From 25 March, individuals will be able to carry out IDV on a voluntary basis. From a date still to be confirmed, but expected this summer or autumn, IDV will become mandatory. The mandatory provisions will have a 12-month transition period. IDV will become effective immediately for new incorporations, with a deadline for existing entities aligned with the date of their confirmation statement.
Individuals will be able to carry out their IDV either directly with Companies House or through an ACSP, which is a third-party service provider registered with Companies House to provide IDV services. ACSPs will also be known as Companies House authorised agents. They must be AML-supervised and are likely to include accountants, solicitors and incorporation agents among others.
The service for ACSPs to register with Companies House will open soon and costs £55. ACSPs will be able to carry out and submit IDVs from 25 March. While only those providers that plan to offer IDV services are required to register at this time, in the future, third-party providers who file information (such as accounts, confirmation statements and other forms) on behalf of others will also need to register.
Firms should be acting now in relation to these changes. This can include working out which clients will be impacted by IDV and considering how you might inform and prepare them. Firms should also consider whether they wish to become an ACSP or not. We have more detail on both these measures, and the action that firms might wish to consider, in the two articles available below.
Read more about identity verification and becoming an ACSP
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