Are UK Directors Ready for Landmark Companies House Reform?

The biggest UK Companies House reform in living memory is less than two months away. But with the clock ticking toward the 1 September deadline, most directors seem to be sleepwalking through it.

According to new findings, only 28% of company directors across the United Kingdom are ready to comply with identity verification rules under the Economic Crime and Corporate Transparency Act (ECCTA). That leaves nearly three-quarters unprepared for what is arguably the most significant Companies House reform since its establishment in 1844.

The change affects a staggering 7 million people who serve as company directors, persons with significant control (PSCs) or company filers. Every one of them must verify their identity with Companies House. Yet, so far, only about 250,000 have completed the process. That is less than 4%.

Are Company Directors Dragging Their Feet?

The reform is meant to clean up the UK's corporate registry, long criticised for allowing fraudsters to hide behind anonymous shell companies. But the response has been sluggish at best. Between January 2022 and February 2025, only one in five companies updated their registered address. A mere 14% changed their legal status. For a change this sweeping, these are warning signs.

The broader problem is not technical. It is cultural. Many firms, particularly smaller ones, are treating the ECCTA as something that might go away if ignored long enough. An expert put it bluntly, “The ECCTA is arguably the most important piece of legislation that people aren’t prepared for, and it affects millions across the UK as well as others working globally for UK-based entities.”

The so-called “wait and see” approach has become the default setting. But it is risky, short-sighted and out of step with the legal reality. The new identity rules are not optional. There are fines, reputational risks, and in some cases, criminal penalties.

Despite this, 21% of respondents in a recent survey claimed to be compliant, though there is no way to verify that figure, and experts suspect the real number is much lower.

Bigger Firms Appear Slightly Better Prepared for Companies House Reform

Large businesses are showing slightly higher levels of readiness, but only just. Among companies that meet the size thresholds for added compliance obligations, only 37% report being “very prepared.” That is not a number that inspires confidence.

This matters because another major provision of the ECCTA comes into effect this September: the new “Failure to Prevent Fraud” offence. It aims to hold large organisations accountable for fraud committed by employees or agents. The offence only applies to firms that meet any two of these three criteria – over 250 employees, over £36 million in turnover or more than £18 million in assets.

In effect, it puts the burden on companies to ensure that they have the right policies, training and internal controls in place. If they do not and someone on their payroll commits fraud, the company itself could face criminal charges. So far, that message is not landing.

Why Are So Many Not Aware of ECCTA?

One of the more alarming insights from the research is how many directors are unaware of the ECCTA altogether. Despite extensive coverage in the legal and business press, warnings from professional bodies and multiple outreach efforts from Companies House, many directors have either not heard of the changes or do not realise the deadlines are so near.

This raises the question, who is responsible for making sure companies comply? The government has rolled out public campaigns and law firms have circulated briefings, but that has not been enough. What is missing is accountability within firms themselves.

Experts believe education and internal enforcement are key. Firms must also ensure that their directors and senior employees undergo appropriate training so that they are aware of their duties and responsibilities under the ECCTA.

That kind of preparation is especially important given the ECCTA’s scope. It is not only about fraud or shell companies. It is a structural overhaul of how corporate Britain manages identity, governance and transparency.

Conclusion: No Time Left to Drift

The deadline will not be shifted. From 1 September 2025, every director, PSC and company filer will be required to verify their identity. The government is not planning to be lenient with those who miss the mark.

Compliance is not complicated. Verification can be done digitally, and guidance is widely available. But companies need to get moving. They also need to stop treating this as a bureaucratic formality and start seeing it as what it is: a critical defence against fraud and abuse.

As things stand, most companies are not ready. Many people are unaware of what they are getting into. Some are walking into it blind. For those who lead UK companies, the choice is now clear. Either take control and comply—or risk the fallout of failing to do so.