Running or setting up a limited company in the UK? HMRC has stepped up its compliance activity — and company directors are firmly in the spotlight. Ensuring your details are properly registered has never been more important.
Director Information: What’s Changing?
As part of a wider move to combat tax avoidance and strengthen corporate transparency, HMRC is placing greater emphasis on verifying the identities of company directors. This means your personal information must be accurate, consistent, and up to date across all government systems when forming or managing a limited company.
HMRC now expects complete and correct details for every director, including:
- Full legal name (matching official identification)
- Current residential address
- National Insurance number
- Date of birth
- Your formal role in the business (director, PSC, etc.)
Any missing or outdated information can cause delays in tax registration, trigger compliance checks, or even result in penalties.
Why the Shift Toward Stricter Checks?
Previously, directors could incorporate companies with minimal scrutiny, which opened the door to fraud and misuse. HMRC is now closing those gaps by ensuring directors are clearly identifiable and accountable.
This aligns with major Companies House reforms under the Economic Crime and Corporate Transparency Act, signalling a clear move towards increased visibility and accountability for all UK company officers.
What Are the Risks If You Don’t Comply?
With HMRC and Companies House sharing more data than ever before, inconsistencies between director information can quickly lead to enforcement action.
Late Registration Penalties
If your company fails to register for Corporation Tax within three months of starting to trade, which includes issuing invoices, taking on staff, or beginning business activity, you may face:
- £100 fine for missing the initial deadline
- £100 further penalty if still unregistered after three more months
- £10 daily penalties after six months (up to 90 days)
- Additional tax-based penalties for late submissions
Personal Liability
If you continue trading through a company that has not been registered correctly with HMRC, you could become personally liable for unpaid taxes, particularly where deliberate non-compliance is suspected.
Risk of Strike-Off or Prosecution
Companies House can remove companies from the register if director identity checks are not satisfied or if records are not maintained. In more serious cases, directors can be prosecuted, resulting in:
- Criminal fines
- Disqualification from acting as a director (up to 15 years)
- In extreme cases, imprisonment
Increased HMRC Scrutiny
Companies with missing or inconsistent director details may be flagged for investigation. This can lead to delays, frozen bank accounts, and significant business disruption.
What Directors Should Do Now
- Check your formation documents. Make sure the information filed with Companies House matches HMRC records.
- Update personal details promptly. Notify HMRC and Companies House if you move, change your name, or update your personal information.
- Register for Corporation Tax on time. Directors must ensure the company is registered within three months of trading.
- Seek professional advice. Plan A can help ensure your compliance and prevent unnecessary penalties.
How Plan A Can Support You
At Plan A, we work with new and established limited companies across the UK to ensure their HMRC and Companies House obligations are fully met. Whether you’re forming a company or reviewing your compliance processes, we help keep everything aligned with current legislation.
✔ Fast and accurate company formation
✔ HMRC & Companies House compliance checks
✔ Corporation Tax registration and support
✔ Ongoing advice for directors and business owners
Staying compliant doesn’t have to be complicated – and with HMRC enforcement increasing, now is the right time to make sure your records are in order.
📞 Call us at: 01277 236 246
✉️ Email: info@plan-a.co.uk