ECCTA Director ID Verification and Your UK Business Loan
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduced mandatory identity verification at Companies House. From 18 November 2025 every new UK company director, PSC and LLP member must verify ID before being appointed. Existing directors verify through 2026 against their next confirmation statement. This guide covers what verification means for an in-flight business loan application and how UK lenders treat unverified directors during the transition window.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 7 May 2026
What ECCTA identity verification actually is
The Economic Crime and Corporate Transparency Act 2023 gives Companies House a statutory duty to verify the identity of every director, PSC (person with significant control) and LLP member of UK companies. Verification is a one-time event tied to the individual, not the company. Once verified, the person carries a Companies House Personal Code that links to every company role they hold. Verification is not the same as Anti-Money Laundering checks at a bank, lender or accountant; it is a separate statutory step at the registry.
Two routes: GOV.UK One Login or an ACSP
Route one: GOV.UK One Login identity service. The director uses the GOV.UK app to scan a passport or driving licence and complete a liveness check. Free of charge. Most directors use this route. Route two: an Authorised Corporate Service Provider (ACSP). Accountants, solicitors and some company-formation agents are registered with Companies House to verify identities on behalf of clients. ACSPs charge a fee. Useful for directors who cannot use the GOV.UK route (no UK passport, technical issues with One Login, or directors abroad).
Who must verify and when
New directors and PSCs from 18 November 2025: verification is mandatory before appointment is registered. Existing directors and PSCs: verify before the company's next confirmation statement filing window after the rolling 2026 commencement, with a backstop that catches all existing directors by approximately November 2026. LLP members follow the same logic against the LLP confirmation statement. Failure to verify by the deadline is a criminal offence for the company and the director, and Companies House can refuse to accept filings until verification is in place.
In-flight business loan applications during the verification window
UK lenders run their own KYC and AML checks at underwriting, separate from the Companies House process. An unverified director can still apply for a business loan; the lender's AML team verifies the director directly. The risk surfaces at completion: the lender draws down against a Companies House record, and any pending changes (new director appointments, share-capital changes, registered-office moves) can stall if the company's directors are not verified. Established Ltd companies with all existing directors verified inside the rolling 2026 schedule do not see disruption. Companies appointing new directors during a live loan application should verify the new director before the appointment is filed, otherwise the appointment will be rejected and the loan completion timeline drifts.
Lender-side underwriting impact
Mainstream UK SMB lenders (Funding Circle, iwoca, Allica Bank, OakNorth) are now requesting confirmation that all current directors and PSCs are verified, or are scheduled to verify, as part of the standard underwriting pack. The verification status appears on the Companies House public record. Lenders have flagged that an unverified director with an upcoming confirmation statement is treated as a near-term compliance risk; a few specialist lenders ask for the Personal Code at draw-down. The practical answer: verify all directors before applying, regardless of where you sit in the rolling 2026 schedule.
Practical timeline before applying
Day 1: every current director and PSC starts the GOV.UK One Login flow. Allow 30 minutes per person on a clear day. Day 2: confirm verification has landed by checking Companies House for each named officer. Day 3: collect each director's Personal Code, store securely with company records. Day 4 onwards: apply for the business loan with verification confirmed in the application pack. ACSP route is faster for directors with no UK passport (typically 24 to 72 hours via accountant or solicitor). Loan applications already in flight: notify the lender in writing if any director has not yet completed verification, agree a hold-and-resume protocol so completion does not bounce.
FAQ
Will an unverified director block my business loan application?
Not at the application stage. UK lenders run their own AML checks separately from the Companies House process. The risk surfaces at completion if the loan requires a Companies House filing event (appointing a new director, changing PSCs, updating the registered office) and the relevant person has not verified. Best practice is to complete verification before the loan completes.
Do directors of dormant companies need to verify?
Yes. ECCTA verification applies to every director and PSC of every UK company on the register, dormant or active. The same rolling schedule against the next confirmation statement applies. Dormant companies preparing to be reactivated for trading should verify directors before any new appointments are filed.
My accountant offered to verify me as an ACSP. Is that the same as GOV.UK One Login?
Functionally yes; the Companies House record shows you as verified once either route completes. ACSPs charge a fee but are useful for directors without a UK passport, directors abroad, or directors who hit technical problems with One Login. Both routes produce the same Personal Code.
Can I appoint a new director during my loan application without verification?
No. From 18 November 2025, new directors must verify before the appointment is filed. Companies House rejects appointments where the named director is not verified. If your loan completion depends on a new director being registered (a new guarantor, for example), build verification into the timeline.
What happens if I miss the deadline for an existing director?
Companies House can refuse to accept filings from the company until verification is complete, including the confirmation statement itself. Persistent non-compliance is a criminal offence for the company and director. From a business-loan perspective, lenders treat ongoing filing-rejection events as a compliance flag at underwriting.
Does this apply to UK directors only, or also to overseas directors of UK companies?
Applies to every director and PSC of a UK company, wherever they live. Overseas directors typically use the ACSP route through a UK accountant or solicitor because the GOV.UK One Login flow is built around UK ID documents. Allow extra time for overseas verification, particularly where original documents need to be inspected.
Does verification change my credit profile or affect lender pricing?
No. Verification is a registry event, not a credit event. It does not appear on your personal credit file and does not affect the headline rate a lender offers. It is administrative compliance, not underwriting data.
Where do I find my Personal Code after verifying?
In your GOV.UK One Login account once verification completes, or via your ACSP if you used that route. Treat the Personal Code as sensitive: it links every UK company role you hold. Store it with your company records and share with your accountant or company secretary, not on email or in shared files.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-07.