In a Nutshell…
The ECCT Act is a UK law that gives Companies House real power to check what businesses submit, rather than taking filings at face value. These powers have been live since 2024. The 2026 changes don’t introduce a fresh set of rules; they mark a further escalation in enforcement: a wider data-matching rollout, expanded cross-referencing with HMRC and other government departments, and continued phased identity verification. As the government sets out in its own summary of the changes, the direction of travel has been consistent throughout: less passive record-keeping, more active verification.
The ECCT Act, or the Economic Crime and Corporate Transparency Act, is a law in the UK introduced in 2023 that made massive changes to how corporations are governed and to the handling of financial crimes within those corporations.
The Act gave Companies House more robust identity verification powers and greater authority for registrars to reject and remove fraudulent filings. It also created a new offence, failure to prevent fraud, which came into force on 1 September 2025, roughly two years after Royal Assent. It holds large companies liable if someone associated with them, such as an employee or agent, commits fraud with the intention of benefiting the company.
This also applies if the fraud is committed with the intention of benefiting a client of the organisation; the directors or senior managers need not have known of or ordered the fraud for the company to be liable.
This is a vital measure, as corporate fraud is still prevalent within UK businesses, as in the year leading up to the activation of the Act, according to Gov.UK’s own findings;
“In the Economic Crime Survey 2024, over a quarter (389,000) of UK businesses that have employees reported experiencing fraud attempts”
The ECCT Act has been in place for two years now, but these things are ever-changing, and as such, new developments have been introduced. But what are these new powers, and how do they affect businesses?
What are the New “Query Powers” for the ECCT Act in 2026
The legislation coming into force in 2026 doesn’t reset the query and challenge powers Companies House already has – those have been in place since 4 March 2024, along with the registered email address requirement. What 2026 brings is a further tightening of the infrastructure around those powers, and a shorter runway for businesses that haven’t caught up.
The most immediate change is cost: from 1 February 2026, Companies House is increasing fees across most standard filings, including incorporation and the confirmation statement, to help fund the expanded enforcement and verification work.
On identity verification, the transition period is now closing in. Following the November 2025 deadline, existing directors have a 12-month window to complete verification, and Companies House has confirmed it will begin compliance action against anyone who hasn’t verified once that period ends. The registrar can also query and share data with HMRC, law enforcement agencies and other necessary bodies, and if information submitted to Companies House contradicts records held elsewhere, that discrepancy can trigger a formal challenge.
Record-keeping itself has also changed. Since 18 November 2025, companies no longer maintain their own internal statutory registers of directors, PSCs or secretaries – updates go straight to Companies House instead. And from 26 January 2026, companies that previously elected to hold their register of members on the public register at Companies House must bring that register back in-house.
One change that’s been delayed rather than accelerated: compulsory identity verification for anyone presenting filings on a company’s behalf (solicitors, accountants, formation agents) was originally expected in spring 2026, but Companies House has pushed this back to no earlier than November 2026, when third-party agents will need to be registered as Authorised Corporate Service Providers to file at all. Businesses relying on agents to handle filings should watch this date closely.
It’s not immediate; if the registrar suspects that a person has engaged in conduct that amounts to a relevant offence, a warning notice will be filed first.
But what happens if you don’t comply with these requests?
What Happens if a Company Doesn’t Comply with the ECCT Act?
In short, should a company move offices but forgets to update Companies House and a verification notice is sent to the old address and goes unanswered, Companies House can now question the company’s records and, if the issue isn’t resolved, impose penalties or restrict filings.
If a company doesn’t respond to a query in a way Companies House deems satisfactory, the registrar doesn’t need a court order to take action and can reject filings, remove false data, or restrict corporate activities.
If a query goes unanswered, Companies House will place an annotation on the company’s profile to warn investors, banks and the public that the company is under suspicion.
Non-compliance – whether that’s failing to file required documents or failing to clear a verification query – can result in a fixed financial penalty, a daily-rate penalty for each day the breach continues, or a combination of both. Companies House issues a warning notice first, giving 28 days to take the required action or make representations; act within that window and no penalty is imposed. Miss it, and the registrar can proceed to a penalty notice once satisfied, beyond reasonable doubt, that an offence has occurred.
The ECCT Act also broadens criminal liability for corporations and can carry heavy penalties: unlimited criminal fines, and in some circumstances, imprisonment for directors found to have deliberately or recklessly provided false information.
Directors who persistently fail to comply with filing or verification requirements can also face disqualification – a ban that can run for up to 15 years and extends beyond board positions to roles like charity trustee or pension trustee.
Where a company continues to ignore warning notices or refuses to engage with verification requirements at all, Companies House retains its existing power to strike the company off the register, at which point any remaining assets become bona vacantia (ownerless). This is a general strike-off power under the Companies Act rather than something newly introduced for 2026, so businesses shouldn’t read this as an escalation specific to this year.
What Actions Do You Need to Take to Stay Compliant?
If you’ve set up your start-up or growing business by the book, you have nothing to worry about.
However, if your PSC or director details are out of date, or rather than using a registered office, you have a residential address that is kept private, or you’re still relying on a PO box, these changes mean it’s time to get your house in order before Companies House flags it for you.
These are the actions you will need to take, step by step:
- Check your registered office meets the “appropriate address” test. It needs to be a real address like a registered office where post is guaranteed to reach someone acting on the company’s behalf, and where a delivery would be acknowledged. A PO box, or a home address you won’t put on public record, no longer cuts it.
- Confirm your registered email address is current and checked regularly. Companies House will use this to contact you directly, and a missed query is how annotations and penalties start.
- Verify director and PSC identities. If this hasn’t been done yet, get it sorted rather than waiting for a formal query to force the issue.
- Audit your PSC and shareholder information for accuracy. Cross-check what’s on the public register against what HMRC and other bodies hold, since discrepancies are exactly what the new data-matching is designed to catch.
- Respond to any Companies House query within the 28-day window. Ignoring a warning notice is the single biggest way businesses end up with a penalty they could have avoided entirely.
- Keep confirmation statements and filings up to date, since a backlog of missed filings is the most common trigger for enforcement action.
If several of these apply at once, it’s usually a sign the company has outgrown its original setup, and untangling old PSC records or a registered office that no longer fits should be the first priority, without disrupting day-to-day operations.
How Could ECCT Act Compliance Benefit Your Business?
It’s easy to see all this as extra admin, but a clean, verified register works in your favour. Lenders, investors and larger clients check Companies House before they do business with you, and a company with verified directors, an accurate PSC record and a proper registered address shows that you’re a legitimate company.
It also protects you from a real and growing problem: company impersonation and cloned filings, which the new powers are specifically designed to catch and remove.
There’s a practical upside too. Businesses with their filings in order tend to move through Companies House processes faster, with fewer queries and no annotations sitting on their public profile putting off potential partners.
For start-ups in particular, getting this right early avoids having to unpick a messy compliance history right when you’re trying to raise funding or win bigger contracts, and the longer these things are left, the harder they are to untangle.
How Grosvenor House Helps You Stay ECCT Act Compliant
A lot of what the ECCT Act changes in 2026 demand comes down to having the right infrastructure behind your company, and that’s where we come in.
Our registered office service gives you a proper, monitored business address that meets the appropriate address requirements, so post from Companies House, HMRC or anyone else never gets missed. If you’re not ready to commit to physical premises, a virtual business address gives start-ups and growing businesses the same credibility and compliance without the overhead.
We also handle the practical side that trips people up; our mail forwarding service makes sure warning notices are never missed, and call handling means you’re never unreachable if Companies House or a client needs to get hold of you directly.
If you need to bring directors together to review PSC records or sign off on identity verification, our board meeting rooms give you a professional space to do it properly, and our legal and mediation meeting rooms are there if a compliance issue needs a more formal conversation.
Whether you’re a start-up putting the right foundations in place or an established business tidying up before the next filing deadline, Grosvenor House makes sure you are ready if a warning notice lands.
Whatever stage your business is at, getting your registered office, records and identity verification sorted now is far easier than untangling them after a warning notice lands.
Frequently Asked Questions
What is the appropriate address rule under the ECCTA?
It’s any address where documents sent to the company are guaranteed to come to the attention of someone acting on the company’s behalf, and where a delivery could be acknowledged. Residential addresses used purely for privacy reasons, and PO boxes, generally don’t qualify.
What happens if I don’t verify my identity as a director or PSC?
Companies House can reject filings, place an annotation on your public profile, issue a warning notice, and ultimately impose a financial penalty. In more serious cases, this can extend to disqualification from holding a UK directorship for between 2 and 15 years.
Do I need a UK registered office if my business is based overseas?
Yes. Every UK-registered company must maintain an appropriate UK registered office address regardless of where its directors or operations are based.
Is a registered office the same as my trading address?
No. Your registered office is the official address Companies House and HMRC use for statutory correspondence. It doesn’t need to be where you actually run the business day to day, which is why many companies separate the two.
How long do I have to respond to a Companies House query or warning notice?
At least 28 days from the date on the notice. Responding, or taking the required action, within that window is what stops a penalty from being issued in the first place.
Legal and Financial Disclaimer
This article is intended as general guidance and does not constitute legal or financial advice. Companies House requirements are subject to change as the ECCTA is implemented in phases; for advice specific to your company’s circumstances, consult a solicitor or accountant.