The ECCTA is part of the government’s response to the need to tackle economic crime in the UK. It received Royal Assent on 26^th October 2023. The ECCTA is multifaceted and includes for example, provisions related to crypto assets and new intelligence gathering powers for law enforcement amongst other things, but for SME companies like ours, the most significant change will be to the role and powers of Companies House. Companies House has been given significant extra powers which will directly affect how all individuals and companies interact with it.

These changes include an identity verification regime, changes to Companies House filings, changes to the type of accounts filed for small companies and micro-entities and enhanced powers for Companies House to check, remove and reject information. We are working through these proposed changes and are happy to provide you with more details on any of the aspects that we consider will affect the Company. Further details on this can be found here.

There is now time between the ECCTA having received Royal Assent and coming into force to allow for implementing secondary legislation to be passed, as well as necessary operational changes to be made to Companies House systems. The ECCTA is expected to be fully implemented during 2024 and 2025.

If you are a director of a Company, you will be directly impacted particularly by the new identity verification regime. Whilst the ID verification regime has not been included within the list of early measures which has been introduced under the ECCTA earlier this year, it is important that we begin to disseminate information to you now about what the regime is and how we intend to manage the process once it is in force, including what you will need to do.

Once in force, it will no longer be possible to register the appointment of a new director with Companies House nor for that director to act, until they have been ID verified. Existing directors will also have to be ID verified as part of this new regime.

If you are a client of ours, then we will let you know as and when the system is live and in force and exactly what you will need to do and by when. We will be a registered Authorised Corporate Service Provider (ACSP) and a verification can be made on your behalf. Get in touch below.