Businesses face chaos as a deadline looms for up to seven million company directors to have their identities verified – as it emerged that only 300,000 people had done the checks so far.
With just weeks to go, Companies House said it was planning a campaign to raise awareness of the changes.
But some bemused business owners said the information they had received was poor and amounted to emails that could easily be mistaken for spam.
Those who have attempted the process have found it cumbersome and time-consuming, as it cannot be done through existing online Government accounts.
Instead, users have to register afresh via a new app.
Some who have tried to register their identities have given up – or paid an accountant hundreds of pounds to do it for them.
Frustration: Businesses face chaos as a deadline looms for up to seven million company directors to have their identities verified
The extra checks are being brought in to combat fraud and money laundering under the Economic Crime and Corporate Transparency Act 2023 – the biggest reform of Companies House since its inception in 1844.
Company directors questioned why there had been so little process or engagement with businesses to ensure they submit details for verification.
After the cut-off date, directors will not be allowed to access Companies House to submit annual accounts or changes to executives’ details.
Companies House – which said it had notified directors by email – told The Mail on Sunday it planned to announce the deadline for identity verification during the coming week. According to previous reports, the deadline could be as early as next month.
Such a move would play havoc with the many enterprises whose calendar year-ends mean they must file annual accounts by the end of September to avoid fines.
Hotelier Elyse Waddy said Companies House should have worked with business and trade groups earlier to ensure the change was widely known about.
She said: ‘When you receive an email saying it’s from Companies House or HMRC, you assume it’s a scam. I’m on a major UK Hospitality Committee, yet I was not aware of this at all, although I file my submission via my accountant who may know.’
Waddy, owner of the Empire Hotel, in Llandudno, North Wales, added: ‘Had Companies House chosen to target a major body or agency to disseminate information about this change, it would have been helpful.
‘Or they should have sent the email to accountancy firms who could pass the information on to companies. That way, you know it’s genuine.
‘If you are going to implement something by a deadline, you need to make people aware of it.’
Paul Milsom, owner of Milsom Hotels, a small chain of hotels and hospitality venues in Essex, questioned why the change wasn’t prioritising new company directors first. He said: ‘New companies and new company directors setting up need to be verified but if you have been a director of a company for a long time, it’s obvious who you are.’
Karen Stobart, secretary of a management company set up by eight leasehold flat owners in South London, is among directors caught out by the change.
She described Companies House’s communications as ‘threatening’ – as she must file annual accounts by September 22, but she has tried to verify her details without success and fears a fine if the deadline is imposed before then.
She said: ‘There’s massive confusion and I find it threatening as a process. To send me an email asking me to verify myself online sounds like a scam.’
Companies House has emphasised that directors whose firms have recently filed their accounts could wait until next year.
A source said: ‘We are not expecting all 6 million to 7 million company directors to meet the deadline – they will be expected to meet the requirements over the next year. We’re expecting tens of thousands per day to be completing the checks.’
But since the verification process was launched, the rate of people going through the tests is equivalent to fewer than a million a year – meaning it would take up to 2032 for all company directors to be processed.
A Companies House spokesperson said: ‘The rollout of identity verification will boost business, and support growth, by giving more assurance about who is setting up, running and controlling companies in the UK.
‘We will be phasing in identity verification over 12 months, beginning this autumn, to ensure we provide the best support to all companies and individuals within scope of the requirements.
‘We are contacting all companies with advice and guidance. We encourage people to verify as early as possible.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .