UK accountants received four significant regulatory updates this week. Companies House extended identity verification deadlines for document presenters. The Solicitors Regulation Authority proposed mandatory submission of all accountants’ reports. Welsh businesses gained substantial business rates relief. And Companies House data revealed accountants were blamed in one-fifth of late filing penalty appeals.
Here are the details.
Companies House Identity Verification Timeline Extended
The Economic Crime and Corporate Transparency Act introduced mandatory identity verification for company directors and persons with significant control on 18 November 2025. The requirement applies at incorporation for new companies and during confirmation statement filing for existing entities.
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Presenter Verification Postponed
The Spring 2026 deadline for mandatory identity verification of document presenters has been pushed back to no earlier than November 2026. This extension provides additional time to complete the 12-month transition period for existing directors and PSCs while allowing Companies House to address stakeholder feedback.
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Third-Party Agent Registration Delayed
The requirement for third-party agents filing on behalf of companies to register as Authorised Corporate Service Providers has also moved to the November 2026 timeframe. Until then, agents can continue filing without ACSP registration.
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Current Requirements
Identity verification remains compulsory for new directors and PSCs appointed from 18 November 2025. Existing directors and PSCs must verify identity when their confirmation statement becomes due during the 12-month transition period ending November 2026. Individual voluntary verification has been available since 8 April 2025.
Companies House estimates more than 7 million individuals will go through these checks. The extended timeline means firms have additional months to plan ACSP registration and internal filing process changes. Practices should prioritise director and PSC verification for existing clients now rather than waiting for the presenter deadline.
Solicitors' Accountants' Reports: Major Changes Proposed
The Solicitors Regulation Authority launched a consultation proposing fundamental changes to the accountants’ reports regime under the SRA Accounts Rules. The consultation closes at midday on 20 February 2026.
The proposals introduce four major changes to current practice:
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All Reports Must Be Submitted
Currently, only qualified reports identifying significant breaches or weaknesses must be submitted within six months of the accounting period end. The SRA proposes requiring the submission of all reports, whether qualified or unqualified, to provide complete oversight of compliance.
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Direct Submission from Reporting Accountants
Reports will be submitted directly by reporting accountants rather than law firms. The SRA believes direct submission reinforces accountant independence and reduces interference risk from firms in the reporting process.
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Declarations Extended to All Reports
All submitted reports will include declarations from the reporting accountant confirming work completion as required and reporting outcomes. These declarations currently apply only to qualified reports but will extend to unqualified reports.
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Firm Declaration Requirements
All client money holding firms will make annual declarations to the SRA confirming either exemption from accountants' report requirements under rule 12.2 or confirmation that they instructed an accountant and fulfilled their obligations under the Rules.
The consultation also seeks views on expectations for reporting accountants to routinely obtain bank confirmations regarding client accounts. Fixed financial penalties are proposed for procedural failures, though penalties will not apply to reporting accountants themselves.
Welsh Business Rates Relief Package Worth £116m
The Welsh Government published its Final Budget Report for 2026-27 on 20 January with significant business rates support measures. The Welsh Parliament will debate and vote on the Final Budget on 27 January 2026.
Wales will replace its single multiplier of 0.568 with three separate rates from 2026-27:
- A retail multiplier of 0.350 for shops with rateable values below £51,000
- A higher multiplier of 0.515 for all properties with rateable values above £100,000
- A standard multiplier of 0.502 in all other cases
The Welsh Government will provide transitional relief where bills rise by more than £300 as a result of the 2026 revaluation. Under the relief, which is estimated to cost £116m, eligible ratepayers will pay 33% of their additional liability in 2026-27 and 66% in 2027-28.
Practices with Welsh clients should identify which businesses will benefit from the retail multiplier and which face increased liabilities under the higher multiplier. Transitional relief eligibility should be assessed for clients facing increases above £300.
Late Filing Appeals: Accountants Named in 20% of Cases
Companies House issued 317,985 penalties for late filing in 2024-25, up 7% on the previous year, collecting at least £46m in penalties after successful appeals.
According to Companies House’s independent adjudicator, 20% of companies blamed their accountants for late filing. The adjudicators considered 466 cases, of which 95 related to accountants. Only one appeal on this basis succeeded.
Total appeals decreased 7% to 47,673, with only 21% succeeding. Nearly one third came from dormant companies whose directors mistakenly assumed that registering as dormant with HMRC meant they did not need to file accounts at Companies House. That assumption is incorrect.
Practices should review client communication processes around filing deadlines. Clear written confirmation and separate tracking for dormant company clients may reduce penalty risk and protect professional reputation.
Plan Ahead
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27 January 2026
Welsh Parliament votes on the Final Budget.
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20 February 2026
SRA accountants' reports consultation closes at midday.
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1 April 2026
Welsh business rates changes take effect.
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November 2026
Companies House presenter identity verification deadline.
Review Welsh client portfolios for rates impact. Submit SRA consultation responses by the deadline. Prioritise director and PSC identity verification. Strengthen client filing communication processes.
This week’s updates are based on news published by ICAEW, Companies House, SRA, and Welsh Government between 19 and 23 January 2026.
