Companies House's enhanced enforcement powers under the Economic Crime and Corporate Transparency Act mean stricter compliance requirements and automatic penalties for accountants and their clients.
Companies House is implementing large-scale regulatory changes in 2026, including increased fees, mandatory ID verification, and enhanced enforcement powers brought in by the Economic Crime and Corporate Transparency Act. For accountants advising owner-managed companies and acting as Authorised Corporate Service Providers (ACSPs), these changes have moved from theoretical to operationally critical.
Enhanced Powers—Real Teeth
Companies House has removed restrictions so it can make enforcement decisions without needing a court order, and can now issue fines of up to £10,000, reject filings, and strike companies off the register itself. This represents a seismic shift from the passive registration regime of previous decades.
The body will now be able to query the information companies provide, and even shut down those which don't meet its new standards.
What This Means for Your Practice
For accountants, the implications are substantial.
Failing to file accounts or a confirmation statement is a criminal offence; directors can be prosecuted and fined personally, and persistent non-compliance can lead to director disqualification.
A missed confirmation statement can lead Companies House to assume the business is no longer operating and begin striking the company off; a struck-off company ceases to exist as a legal entity, its bank accounts can be frozen, and its assets pass to the Crown.
Clients are likely to turn to their accountants seeking reassurance about compliance. Firms must ensure they have robust filing calendars, documented checklists, and clear client communication protocols.
By the end of 2026, Companies House expects to complete the transition period for identity verification of individuals on the register and begin compliance activity against individuals who have failed to verify.
Fee and Filing Pressures
As of 1 February 2026, the digital filing fee increased to £50 (up from £13), while paper filings rose to £110 (from £40), reflecting Companies House's push toward digital submissions.
From 1 April 2027 all accounts, including dormant accounts, must be filed using commercial software; the Companies House web and paper filing options will cease.
Penalties Are Automatic
Penalties for late filing start at £150 for up to 1 month late, escalating to £1,500 for over 6 months, with doubles for repeat offenses and potential prosecution. Unlike the old regime where Companies House showed discretion, these penalties are now imposed automatically—no appeals, no excuses, no discretion. A filing that arrives in mid-November instead of mid-September is not "a bit late"; it is now immediately subject to a £375 penalty.
Your Action Points
First, audit your current filing procedures. Are deadlines clearly flagged in your practice management system? Are reminders issued to clients at least six weeks before Companies House deadlines?
Second, ensure all ACSPs and staff handling filings have obtained (or are in the process of obtaining) their Companies House personal code and that identity verification is complete.
Third, if you still file on paper or via the Companies House web portal, commit now to migrating to compliant software well before April 2027. Waiting until March 2027 is not an option.
Fourth, if a client has missed a filing, do not delay—guide them through the relief-from-sanctions process immediately. Companies House will show far less tolerance than HMRC historically has for missed deadlines.
These changes are heralded as allowing Companies House to play a more significant role in tackling economic crime and supporting economic growth, leading to greater transparency and more accurate data. From a policy perspective, that may be sound. From a practice perspective, it means one thing: zero tolerance for error.