In this article, we take stock of the events affecting companies in 2025 and take a look at the year ahead to see what is in store with regard to companies’ statutory and regulatory compliance obligations.
2025: ECCTA Compliance, Digital, Reporting, and Governance
Looking back at 2025, four themes become apparent:
- The implementation of the Economic Crime and Corporate Transparency Act 2023 (ECCTA)
- Greater focus on digital
- Changes to reporting, and
- Governance
Implementing ECCTA Compliance
In 2025, ECCTA carried on the work that commenced in 2024. 2024 activities included the requirement for companies to register an e-mail address with Companies House; the requirements to declare annually that the future activities of the company are lawful (as part of the annual confirmation statement filing – CA 2006 section 853BA); striking-off companies using PO Boxes as registered offices that will not provide an “appropriate address” (section 86); assessing company name registrations for their ability to mislead customers (section 53A); removing inaccurate information, and allowing Companies House to issue financial penalties.
If you require any support with compliance or governance and the ECCTA then please contact us here.
The ECCTA in 2025
In 2025, Companies House reports that:
- It can process applications from individuals seeking to suppress the public disclosure of their residential address used as a registered office address
- It can expedite the strike-off of companies where it has concluded that the companies have been formed on a false basis
- It allows third-party agencies, such as MSP Company Secretarial (subject to the UK’s anti-money laundering regime) to act as its Authorised Corporate Service Providers (ACSPs) ACSPs can verify individual’s identities to support the compulsory ID verification requirements implemented from 18 November 2025. As part of a company’s confirmation statement filing, all new directors and PSCs will need to have an IDV Code at registration
- It will be able to reject documents delivered by disqualified directors (unless the filing is permitted by law)
- It will be able to share information between UK agencies to cross-check the information being filed
The offence of failure to prevent fraud was introduced from 1 September 2025 to hold organisations to account if they profit from fraud committed by their employees. We will cover this new offence and its implications for organisations’ fraud prevention procedures in our next article.
If you require an ACSP to help with your verification requirements, please contact us here.
The ECCTA and its greater focus on digital
Among the far-ranging effects of the requirements of ECCTA, has been the facilitation of electronic delivery by Companies House (CA 2006 section 1068(4A); ECCTA 2023 section 75), and the Companies House’s digital transformation programme. This move to digital has been evident in the introduction of Gov.UK One with respect to identity verification and as a gateway to online filing. 2025 saw the establishment of the systems to support digital delivery and 2026 will start to see more digitisation.
If you need advice or guidance with digitisation, please contact us here.
Reducing and modernising reporting
On 6 April 2025 The Companies (Accounts and Reports)(Amendment and Transitional Provision) Regulations 2024 (SI 2024/1303) came into force which:
- Reduced the information required to be included in the directors’ report
- Raises the financial parameters used to determine the size of a company for auditing and reporting purposes and is intended to reduce reporting requirements for many companies
These changes are part of the Government’s desire to modernise corporate reporting, a review where the Government plans to consult on “the whole of the Annual Report and Accounts”, anticipated in 2026.
Updating governance codes
2025 was an important year for governance codes – the UK Corporate Governance Code (2024) became effective from 1 January 2025, and the transition period for the adoption by companies of the QCA Corporate Governance Code (2023) ended and all companies following the QCA Code should have adopted the new Code.
The key changes for the UK Corporate Governance Code can be found here, and for the QCA Code, here.
ECCTA 2026 and beyond – what’s in store for organisations?
If 2025 was a year of preparation, then 2026 promises to be a year of implementations with a focus on governance and digital, more ECCTA-related implementations for companies, addressing the completion of the changes required by ECCTA, and the promise of streamlined annual reporting.
Some governance considerations for 2026
From 1st January 2026, Provision 29 of the UK Corporate Governance Code applies. Provision 29 addresses a board’s duty to “monitor the company’s risk management and internal control framework…at least annually” and comment upon this management and framework in the company’s annual report. Organisations will also need to make a “declaration of effectiveness of the material controls as at the balance sheet date”. Boards of companies adopting the UK Corporate Governance Code therefore need to review the company’s framework of risk management and internal controls, monitor all material controls, and explain these practices in the company’s annual report. MSP Company Secretarial can assist companies on how to prepare for this framework review and how to address it in the company’s annual report.
Also, from 1st January 2026, the UK Stewardship Code 2026 applies. This ‘apply and explain’ Code is voluntary and applies to asset owners, asset managers and service providers.
A bill going through Parliament which could become law in 2026 is an amendment proposing that directors, already under CA 2006 section 172 duty to promote the company’s success, that in performing this duty have regard to the impact in the long term of the company’s actions on the company’s broader range of stakeholders and seek to “reduce…harms the company creates to the environment”.
2026 sees a revision of the prospectus regime. From 19th January 2026 the public offers and admissions to trading regime comes into force – the “Public Offers and Admissions to Trading Regulations 2024 (SI 2024/105) (POATR)”. POATR is the revised framework for public offers and the admission of securities to trading in the UK. These regulations are too complex to summarise here (you can find a summary here), but one important change is that the threshold for requiring a prospectus for the further issuance of securities has been raised from 20% to 75% of existing securities admitted to trading. The UK Listing Rules have been updated to accommodate the changes from POATR.
For further detailed guidance on governance requirements and how to respond to Provision 29, contact our team.
Digital changes continue
From 1st April 2027, it will only be possible to file a company’s accounts at Companies House via compliant software (it will not be possible to use Companies House’s webfiling service), it is expected that a phased introduction will start in late 2026. Companies will need to use 2026 to address how they will prepare and submit their accounts to Companies House.
In mid-2026 we can expect to hear how shareholdings will be digitised by end of 2027.
ECCTA implementations and compliance in 2026
Many of the requirements of ECCTA 2023 are underway. Remaining implementations relating to ID verification (IDV) that are expected in 2026 are:
- Persons filing information at Companies House will need to have their identity verified, and any third-party filing on behalf of a company will need to be registered as an ACSP
- Filing requirements relating to LPs (Limited Partnerships) will be introduced
- IDV requirements for directors and PSCs that have been mandatory since 18 November 2025 will continue
Note too, from 1st February 2026, Companies House fees will increase – details of these changes can be found here.
If you need ACSP support for compliance on any of the items listed above, please contact MSP Company Secretarial.
Company Reporting in 2026
As mentioned earlier, a consultation by the Government to modernise and simplify reporting of the Annual Report and Accounts is anticipated as part of the Government’s Modernising Corporate Reporting practices. In the meantime, on 1st January 2026, The Companies (Directors’ Report)(Payment Reporting) Regulations 2025 (SI 2025/1152) came into force. These regulations require large organisations whose financial year starts on or after 1 January 2026 to report in the Directors’ Report the company’s payment practices and performance. Companies need to report, amongst other details:
- The company’s standard payment period with its suppliers
- Average days to pay
- Details of payment made outside the standard payment period
How MSP Company Secretarial can help
Corporate governance, statutory reporting, filing demands and digitisation, these are the areas of change that will affect all companies during 2026. Companies need to keep abreast of changes whilst managing their other duties like annual reporting, PLCs holding annual general meetings, maintaining registers and complying with the many laws and regulations. Sitting at the centre of this web of responsibilities and activities is the company’s board and its committees.
MSP Company Secretarial can assist companies with their statutory compliance through best practice corporate governance regimes, to full board support and board effectiveness.
A review of the year ahead: Frequently Asked Questions
How can organisations evidence ongoing ECCTA compliance where key controls sit with outsourced providers?
ECCTA’s current focus are steps to verify and clean the UK’s Companies Register, with powers granted to Companies House to impose penalties, and that includes identity verification for directors and Persons with Significant Control. Outsourced providers are able to review and, with clients, check that the information is correct. These providers can then correct any mistakes, and send reminders to clients of changes in regulation. Being aware of a company’s circumstances and activities, outsourced providers can focus on requirements that are applicable to a company’s compliance.
Often, companies forget what needs to be updated and who is or who is not a PSC, here outsourced providers can assist with a company’s compliance.
What governance risks should be considered when digital tools or automation are introduced into ECCTA-related reporting processes?
Companies need to be particularly vigilant for the next year or so as new systems come online, most notably when filing accounts. Preparation for new digital practices is important now that Companies House has a firmly digital agenda and paper submissions will be phased out. These changes will require a structured approach to filing. People who file for, or on behalf of, a company will require registration and authorisation. Notifications from Companies House are increasingly sent via the company’s registered e-mail address. Companies will need to be clear who receives these notifications and what happens when that person leaves the company. They should also have a nominated person who will file the accounts. Organisations should also check that they have access to (commercial) software that can produce accounts compliant with the Companies House’s filing protocols.
What practical steps can organisations take in 2026 to strengthen ECCTA compliance beyond minimum regulatory requirements?
The first step is to visit your company’s public entry on Companies House and review the details to make sure that the information is current and accurate. More details are available in the company’s webfiling account, such as directors’ addresses, share structures, PSCs, and registered e-mail addresses. Make sure these details are correct. Take note of your company’s confirmation statement date and make sure that during 2026, all directors and PSCs have IDV Codes (see here for more details). As regards PSCs, make sure registrations are correct (e.g. that a PSC still has their registered % holding as registered – are they still a PSC?). For PLCs, if you are unsure about a PSC registration, then contact MSP, who can help.
Other articles you may be interested in:
A Guide to Company Reports and Financial Reporting