Many company directors have already completed their Companies House identity verification and think the job is done.
Unfortunately, that’s not always the case.
If you’re also listed as a Person with Significant Control (PSC), which many owner-managed limited companies are, you may have an extra step to complete. Missing it could result in penalties, fines, or even a note being added to your Companies House record.
Here’s what you need to know.
What is a Person with Significant Control (PSC)?
If you own or control a company, there’s a good chance you’re a PSC.
In simple terms, a PSC is someone who has significant influence or control over a company. This usually means someone who:
- Owns more than 25% of the shares
- Holds more than 25% of the voting rights
- Has the right to appoint or remove most of the directors
- Exercises significant influence or control over the company
Many small business owners are both a director and a PSC, but Companies House treats these as separate roles.
Why isn’t director verification enough?
This is where many people are getting caught out.
After you verify your identity, Companies House gives you a personal code. While it’s the same code, it must be linked to each role you hold.
If you’re a director, your personal code is used for your director role.
If you’re also a PSC, you must separately provide your personal code to connect your verified identity to your PSC record using the dedicated PSC service. Simply verifying as a director does not automatically complete the PSC requirement.
Why has Companies House introduced this?
The new identity verification rules are part of the Economic Crime and Corporate Transparency Act.
The aim is to make Companies House more accurate and reduce:
- Fraud
- Identity theft
- Fake company appointments
- Criminal misuse of UK companies
By making sure directors and people who control companies are properly identified, Companies House hopes to make the register more reliable and trustworthy.
What happens if you don’t complete your PSC verification?
It isn’t something to ignore.
If your PSC verification isn’t completed within the required timeframe, Companies House says you could:
- Commit an offence
- Receive financial penalties or fines
- Have a note added against your name on the public register
- Experience delays with company filings or other compliance matters
The good news is that checking your status is usually quick.
How do you complete your PSC verification?
If you’ve already verified your identity, you don’t normally need to verify yourself again.
Instead, you’ll need to provide your Companies House personal code for your PSC role through the online PSC verification service, or your authorised agent can do this on your behalf during the relevant filing window.
If you’re unsure whether this has already been completed, it’s worth checking rather than assuming everything is in order.
We can take care of it for you
At Simplex Accounting, we already complete these Companies House requirements for clients who use our Company Secretarial Service.
For just £10 per month, we’ll help keep your Companies House records up to date, including:
- Confirmation Statements
- Director changes
- PSC updates
- Companies House compliance
- Identity verification requirements where applicable
Many of our existing company secretarial clients have already had this completed, giving them one less thing to worry about.
Not sure if you’ve done both?
If you’re a company director and a shareholder, it’s worth checking that both your director and PSC identity verification requirements have been completed.
If you’re unsure, get in touch with the Simplex Accounting team. We’ll happily check your Companies House record and let you know whether anything still needs to be done before it becomes a problem.
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