You may have recently receive an email from Companies House about the Economic Crime and Corporate Transparency Act (ECCTA) and wonder if it's legitimate? You're not alone. Many business owners are receiving these notices and are unsure what to do. have received an email from Companies House advising you about this and are note sure whether this is valid.
Or maybe you haven’t heard about the Economic Crime and Corporate Transparency Act 2023 (ECCTA), it’s a new piece of UK legislation that's bringing significant changes to how companies operate and file information.
While the name sounds intimidating, the core purpose of this Act is simple: to make the UK a more transparent place to do business and to crack down on fraudulent activity.
So, what does this mean for you as a business owner?
The Key Changes and Deadlines You Need to Know
The biggest change for most companies is the introduction of mandatory identity verification. For the first time, all company directors and Persons with Significant Control (PSCs) will have to prove their identity to Companies House.
When does this happen? While the official start is November 2025 for new companies and new appointments, existing directors and PSCs have a 12-month transition period. You’ll need to complete this verification when your company files its next confirmation statement after the rules come into force.
What are the consequences? Ignoring these new requirements is a criminal offence. It could lead to financial penalties and other legal issues.
ECCTA also introduces other major changes, including:
Stricter Filing: From April 1, 2027, all company accounts must be filed using commercial software. The old paper and web-based filing options will no longer be available.
More Transparency: The option to file abridged accounts* is being removed. This means more of your company’s financial information will be publicly available on the Companies House register.
Cashtrak: Going Beyond the Numbers
At Cashtrak, we believe our role is to be more than just a bookkeeping service. We understand that running a business means staying on top of complex regulations, and not everyone has the time to read every government update—or even to find out when new updates have been released.
That's where we add real value. We actively monitor legislative changes like ECCTA to ensure our clients are never caught off guard. We'll provide you with timely, straightforward advice on what these changes mean for you and your business.
Whether it's a new service we can offer or something you can easily handle yourself to save money, our priority is to make sure you have the information you need to stay compliant. We will keep you updated and help you navigate these new requirements, ensuring you avoid unnecessary penalties.
Staying on top of compliance isn't just about avoiding fines; it’s about building a strong, credible business. At Cashtrak, we handle the details so you can focus on what you do best.
* What Are Abridged Accounts?
Before the ECCTA, many small and micro-sized companies in the UK chose to file "abridged accounts" with Companies House. This was a streamlined version of a company's financial statements that showed less detail.
Essentially, abridged accounts offered a way for businesses to maintain a degree of financial privacy. While they still had to prepare full statutory accounts for their records, they could file a condensed version with Companies House that:
Combined multiple line items on the balance sheet.
Omitted the profit and loss account from public view.
This meant competitors, lenders, and the public couldn't see how much turnover the company was generating or what its profit margins were. It was a popular option for small, privately-owned businesses.
However, the new ECCTA legislation is now removing this option. This means that from April 1, 2027, more detailed financial information, including the profit and loss account, will become part of the public record for all small and micro-entities. This change is part of the government's push for greater corporate transparency.