Identity verification for Directors and PSCs, government support for small businesses, and potential minimum wage rises for 2026
If you’re a company director or person with significant control, you may well need to verify your identity as part of a reform to the Economic Crime and Corporate Transparency Act 2023. Plus, the government provides support for small businesses, and wages could rise in 2026 for employees on National Minimum Wage.
New Legal Requirement: Directors and PSCs Must Verify Their Identity from November 2025
From 18 November 2025, identity verification will become a legal requirement for all company directors and people with significant control (PSCs). This is part of a wider reform under the Economic Crime and Corporate Transparency Act 2023, and it’s set to impact millions of individuals connected to UK companies.
If you’re a company director or PSC, this change will affect you, and it’s important to understand what’s required – and when.
What’s Changing?
From 18 November 2025:
- New directors will need to verify their identity when incorporating a company or being appointed to an existing one.
- Existing directors will be required to confirm they’ve verified their identity when filing their company’s next confirmation statement – this forms part of a 12-month transition period.
- Existing PSCs will also need to verify their identity within a specific 12-month period, depending on their role and date of birth.
Why Is This Happening?
The aim is to make the companies register more transparent and trustworthy, and to help tackle fraud and economic crime. With identity verification in place, it will be harder for individuals to hide behind fake names or false company appointments.
What Does It Mean for Your Business?
This is a one-off process for most people, and Companies House says it will be quick and simple – taking just a few minutes in most cases.
The verification process can be completed via your GOV.UK One Login. Or, you can verify through us, as we are an Authorised Corporate Service Provider (ACSP).
Once the new rules come into effect, it will be an offence to act as a director without being verified.
When Do You Need to Act?
- If you’re appointed as a new director or PSC from 18 November 2025, you must verify within 14 days of being registered.
- If you’re an existing PSC, your deadline depends on your circumstances:
- If you’re also a director, you must confirm that you have verified your identity within 14 days of the company’s confirmation statement date.
- If you’re not a director, your 14-day deadline starts on the 1st day of your birth month in 2026 (as shown on the Companies House register).
What If You’re Unsure?
Companies House is contacting all companies via their registered email addresses with details and guidance. You’ll also be able to log into Companies House after 18 November to check identity verification due dates for all roles you hold.
If you have any questions or need help, please just get in touch with us. We’ll be happy to help guide you or your company through the new requirements.
Government Unveils Small Business Plan
The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses.
The plan recognises that small businesses make a vital contribution to the economy, employing 60% of the UK’s workforce and generating £2.8 trillion in turnover.
Here is a breakdown of some of the key measures and how they may impact your business.
Could This Be the End of Late Payments?
Likely not, however the government is promising the toughest late payment legislation in the G7.
They plan to introduce:
- A legal requirement for large businesses to pay within 60 days, moving to 45 days over time.
- Mandatory interest charges on late payments.
- Greater powers for the Small Business Commissioner, including the ability to fine persistent offenders and carry out spot checks.
- Audit committees to be legally obliged to scrutinise payment practices.
These reforms could ease cashflow pressures for you and reduce the amount of time spent chasing invoice payment.
Better Access to Finance
The plan includes several measures that could increase access to finance, including:
- 69,000 Start-Up Loans, paired with business mentoring.
- A £3 billion boost to the British Business Bank to help more lenders offer loans.
- £340 million in regional equity investment to help entrepreneurs across the UK.
- A new Code of Conduct on personal guarantees for government-backed loans.
These changes could mean that there will be more routes to affordable finance.
Cutting Red Tape
The plan promises to make a 25% cut in regulatory admin costs, and to make reforms to the tax and customs system to make things simpler and quicker.
Any time saved on compliance and admin means more time for growing your business.
Other Measures
Other measures included in the plan include targeted support for high street businesses, education and training for the next generation of entrepreneurs, and helping businesses to take advantage of additional opportunities at home and abroad.
To review the Small Business Plan in full, see: https://www.gov.uk/government/publications/backing-your-business-our-plan-for-small-and-medium-sized-businesses
Minimum Wage Hourly Rates: Potential Increases in 2026
The Government has published the official remit for the Low Pay Commission (LPC) to begin its work on setting the National Minimum Wage (NMW) and National Living Wage (NLW) rates that will apply from April 2026.
While the final figures won’t be confirmed until later in 2025, the direction of travel is already clear. Employers should be prepared for further increases in wage costs in April 2026.
National Living Wage likely to rise again
The Government has reiterated its commitment to ensuring the National Living Wage doesn’t fall below two-thirds of UK median earnings – a benchmark that defines the level of low hourly pay. Based on current forecasts, that means we could be looking at a NLW rate of £12.71 from April 2026, a 4.1% increase.
To put that into context, the current NLW rate for workers aged 21 and over is £12.21, up 6.7% from the previous year.
Narrowing the gap for younger workers
As part of its remit this year, the LPC will be consulting on narrowing the gap between the full NLW rate and the rate that applies to workers aged between 18 and 20 years old. The LPC will be putting forward recommendations on how to achieve a single adult rate in the years ahead.
What should employers do now?
Although the final rates won’t be known until October, these latest estimates are a strong indication of where things are headed. Here are a few things to consider:
- Factor these increases in when reviewing your payroll budgets for 2026.
- Consider the knock-on effect. If the NLW rises, pay for other roles may need to be adjusted to maintain structure and morale.
- Remember employer NICs and pensions. Increases in wages can also affect National Insurance contributions and pension auto-enrolment costs.
Final thoughts
The Government is clear in its aim to raise living standards through wage growth – and the LPC’s remit is designed to support that. For employers, this means keeping a close eye on wage forecasts and planning ahead for higher employment costs.
We’ll keep you updated as more information becomes available. In the meantime, if you’d like help reviewing your payroll plans or budgeting for potential increases, we’re happy to help.
See: https://www.gov.uk/government/news/national-living-wage-estimate-update