Business owners may end up spending ‘tens of millions’ for help with the Kafkaesque system set up to verify their identities, it has been claimed.
Third-party firms are charging up to £250 to help directors navigate a new ID checking process at Companies House set up after a 2023 law change to crack down on fraud.
From November 18, Britain’s six to seven million company directors must undergo the checks before a firm’s next confirmation statement, due every year, or amend details.
Failure to do so puts them at risk of fines, disqualification or being struck off the register.
Frustration: Business owners may end up spending ‘tens of millions’ for help with the Kafkaesque system set up to verify their identities
Some directors have less than three months to undergo verification, which has only been done by 300,000 people.
Bosses attempting the process, which involves using a new app, report issues such as an ‘infinite loop’ of logins and being locked out, meaning they have to use a post office.
Cindy van Niekerk, head of ID service Umazi, said: ‘We are seeing third-party providers charging anywhere from £45 to £250 per verification. Multiply that across six to seven million directors and the bill could run into the tens of millions.’
The Government said: ‘Vital security features mean some people will not be able to prove their identity immediately but there are quick, alternative routes to deal with this.’
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. .