From July 2026, prosecutions have begun at Cardiff Magistrates Court for Company Directors who fail to verify their identity with Companies House. This new offence, alongside failing to file Company Accounts and confirmation statements under the Companies Act 2006, increases directors’ personal criminal liability.

All Company Directors, LLP Members, and persons with significant control (PSCs) registered at Companies House must verify their ID via the GOV.UK ID portal One Login. These rules, under the Economic Crime and Transparency Act 2025, aim to combat fake directors using shell companies for money laundering and reduce corporate crime.

Many directors have yet to complete ID verification. The One Login App verifies photographic ID, including biometric passports or driving licences, and provides a code for use with an associated company once successful.

It is crucial for directors, LLP members, and PSCs to complete ID verification promptly to avoid prosecution and complications, as Companies House prosecution teams have started court proceedings for these criminal offences.

I am a Company Director and have received notification from Companies House that I have failed to complete my identity verification. What will happen next?

Failure to confirm your identification will prevent any Company Director or member of a Limited Liability Partnership (an LLP) from filing accounts and/or changing details on the register relating to a Company, which people commonly search through the Find and update company information service. You should not assume every filing in the database has been verified, so prepare to carry out additional due diligence when checking status such as active, dissolved, or in liquidation and reviewing related data. If a Company Director does not confirm identity, they face the risk of a criminal prosecution, a criminal record and, for persistent offenders, being disqualified from acting as Director (for repeat offenders).

What can be the impact of a conviction for failing to file company accounts on time for a Company Director?

A practical example of the impact of a Companies Act offence and conviction is complications when applying for a Visa for foreign travel. Failing to file Company Accounts, verify your identity with Companies House, or file a confirmation statement are criminal convictions considered a ‘felony’ in the United States and must be disclosed on an ESTA application, even if spent. Hiding such convictions can lead to serious immigration offences.

Prosecutions for failure to confirm identity are often linked with failure to file a Confirmation Statement, which companies must file every 12 months. The Companies House prosecutor at Cardiff Magistrates Court considers failure to confirm identity as ‘increased culpability,’ which raises financial penalties, and recent reforms also allow the registrar to query or reject suspicious filings.

Key points:

• Failure to confirm identity aggravates failure to file Confirmation Statements.
• This increases fines imposed by Cardiff Magistrates Court.
• Directors should complete ID checks with Companies House promptly, especially before filing a Confirmation Statement. They can also search the register for the green tick showing completed identity verification status.

• Check official updates and webinar comments for procedural changes.

As a Company Director, what happens if my Company Accounts are filed late, and what are the potential consequences for me if I am convicted for this offence in Cardiff Magistrates Court?

The majority of offences prosecuted by Companies House at Cardiff Magistrates Court relate to the late filing of company accounts under sections 441 and 451 of the Companies Act 2006.

All company directors have a legal obligation to file accounts annually. Failure to do so can result in personal criminal liability for each director, and the register records current and resigned directors with their occupations, so this role and these issues can remain visible in practice.

Key points about late filing convictions:

• It is a criminal conviction recorded against the director personally, not the company.
• Convictions appear on future DBS checks.
• Such convictions can impact visa applications, especially for travel to the USA, where they are considered a ‘felony’ for ESTA purposes.
• Directors must report convictions to professional bodies (e.g., SRA, ICAEW, ACCA, CIMA).
• Convictions can lead to disqualification from acting as a director for up to 5 years for misconduct under the Company Directors’ Disqualification Act 1986.
• Directors may also face personal liability for wrongful trading if the company is insolvent and continues to trade.
• Courts impose fines based on the director’s personal income, including prosecution costs.
• Directors must submit a statement of financial means to the court if convicted, detailing all income for fine calculation.

Directors often underestimate the seriousness of these offences, their duties and responsibilities, and the fact that they are personally responsible for the consequences involved.

Is there a defence to failing to file Company Accounts on time?

Yes – There is a potential defence to failing to file company accounts if you can prove you took ‘all reasonable steps’ to file them. This defence depends on your specific circumstances, so expert legal advice is essential.

To establish a defence, gather supporting evidence such as statements from your Accountant or Doctor explaining the situation and the steps you took to file accounts on time; early due diligence on the company’s legal standing and filing history can also help before entering Contracts or relying on third parties in the course of business.

Key points to consider:

• No strict legal definition of ‘all reasonable steps’; it varies by case.
• Evidence should clearly show your diligence and efforts to comply.
• Expert advice helps assess the strength of your defence.

Taking these actions can help protect you from prosecution under the Companies Act 2006.

I have received a summons to appear at Cardiff Magistrates Court for failing to file Company accounts. What can I expect, and do I have to appear in person at court?

Prosecutions under sections 441 and 451 of the Companies Act begin with a Court Summons served on each Director, usually at the company’s registered office address listed at Companies House.

It is crucial to keep the registered office address up to date and able to receive post. A limited company must also report structural updates, including changes to directors and the Registered Office Address, and keep its company name current on the public record in the country of incorporation. Companies House stores these ongoing changes and filings to support transparency, so outdated records increase the risk of missing a summons. A company secretary may help manage these statutory updates, but ignoring a court summons from Companies House can still lead to conviction in your absence.

Key points about the court process:

• First hearings take place at Cardiff Magistrates Court, handling both sentencing and trials.
• Directors may instruct a Solicitor to represent them or apply to appear via video link, avoiding personal attendance.
• Submitting written evidence and submissions to the Companies House prosecution team before court can persuade them and the Court that prosecution is not in the public interest.
• Expert legal representation at court can help negotiate with prosecutors and potentially halt or reduce prosecution consequences.

How can Wilkstone Law help you in defending a prosecution brought by Companies House for failing to file Company Accounts in time?

Wilkstone Law’s Cardiff office regularly defends Company Directors prosecuted by Companies House at Cardiff Magistrates Court for failing to file company accounts or confirming identity under the Companies Act 2006.

For a fixed fee, we review your case and advise if there are grounds to request that Companies House drop the prosecution as ‘not in the public interest,’ potentially avoiding a criminal conviction and court appearance. We also assess your defence prospects and can represent you in court.

Key points about our service:

• Prosecutions start and are heard at Cardiff Magistrates Court.
• Our office is close to the court for easy attendance.
• Expert solicitors negotiate directly with Companies House prosecutors to reduce or end prosecutions and fines.
• Access to specialist barristers in London and Cardiff if needed.
• Solicitors can attend initial hearings on your behalf, avoiding your court appearance with proper instructions.

To avoid prosecution risks, always file accounts on time. If summoned to Cardiff Magistrates Court, seek expert advice promptly. Wilkstone Law can also help make written representations to Companies House to halt prosecutions for late filing or identity verification failures.