Companies House Identity Verification Penalty: What Happens If You Don’t Verify?

Since November 2025, the rules for running a UK company have changed fundamental. The days of anonymous directorships are over. But many business owners are still asking: “What actually happens if I just ignore the request to verify my identity?”

The answer is not just a small fine; it is a complete operational roadblock for your business.

As of January 2026, failing to verify your identity on Companies House triggers a chain reaction of penalties that can stop your business in its tracks. Here is the reality of the Companies House identity verification penalty regime.

1. Your Company Filings Will Be Blocked (Immediate Impact)

The first sign of trouble will be administrative paralysis.

If you are an existing director, you must have verified your identity by the time your company’s next Confirmation Statement is due.

• The Consequence: You literally cannot file your Confirmation Statement without a verified identity code.
• The Knock-on Effect: If you can’t file the statement, your company status changes to “Overdue.” This immediately alerts credit reference agencies, likely damaging your business credit score and making it harder to get supplier credit or loans.

2. It Is Now a Criminal Offence

This is the most serious change. Under the Economic Crime and Corporate Transparency Act, acting as a director while unverified is no longer just a “late filing” issue; it is a criminal offence.

• For the Individual: You can face a significant fine and a criminal record.
• For the Company: The company itself can also be prosecuted for allowing an unverified director to act.

3. The “Wall of Shame” (Public Register Annotation)

Companies House now has the power to annotate the public register. If you fail to comply, your company’s entry on the public database will be flagged.

• The Impact: Banks, investors, and potential clients checking your company will see a warning that the directors are “Unverified.” This is a massive red flag that screams “high risk” to anyone looking to do business with you.

4. Automatic Director Disqualification

If you persist in ignoring the verification request, the ultimate Companies House identity verification penalty is disqualification.

• The Result: You could be banned from acting as a company director for up to 15 years. This bans you not just from your current company, but from any UK company.

5. New Directors: You Won’t Get Through the Door

For anyone trying to set up a new company or be appointed to an existing one today, the door is effectively locked.

• The Rule: You cannot be appointed until you are verified.
• The Reality: If you try to file an AP01 (Appointment of Director) form without a verification code, it will be rejected instantly. You cannot “start now and verify later.”

What Should You Do Today?

If you have received a reminder or your Confirmation Statement is due soon, do not wait. The process typically takes only a few minutes if you have a smartphone and a passport.

• Check your due dates: Know exactly when your Confirmation Statement is due.
• Verify proactively: You don’t have to wait for the deadline. Verify now to generate your unique code.
• Tell your other directors: If one director fails to verify, they can hold up the entire company’s compliance.

Conclusion

The new Companies House identity verification penalty rules are designed to have teeth. They are not empty threats. The cost of compliance is a few minutes of your time; the cost of non-compliance is your business’s reputation and your ability to trade.

If you are struggling with the verification process or need an “Authorised Corporate Service Provider” like us to handle it for you, please get in touch immediately.