2.    Digital ID to Become Mandatory for Right to Work Checks

The government has announced its plan to introduce a new digital ID scheme, which will become the standard way to complete Right to Work checks by the end of the current Parliament.

The digital ID will be available to all UK citizens and legal residents and will be stored securely on mobile phones in the same way as the NHS App or contactless payment methods.

The new system should make compliance simpler for employers carrying out Right to Work checks. Guidance will follow as the roll-out progresses, with a consultation later this year to help shape how the service will work.

The government has confirmed there will be options for people unable to use smartphones, and security will be built in through encryption and authentication technology.

3.    Reminder: Companies House Identity Verification Becomes Mandatory from 18 November 2025

From 18 November 2025, identity verification with Companies House will start to be required for company directors and People with Significant Control (PSCs). The measure is intended to improve the reliability of information on the UK’s company register and support efforts to reduce economic crime.

When to verify

The specific date by which each director or PSC needs to verify their identity varies. Companies House says it will contact each company directly with this information. Broadly, the requirements are as follows:

Directors

• Existing directors of companies will need to verify their identity as part of their company’s next confirmation statement from 18 November 2025. This will need to be done for each company if you are a director of more than one entity.
• If you are registering a new company that you will be a director of, you will need to verify your identity as part of the registration process.

PSCs

• If you are a PSC, as well as a director of the same company, you need to verify your identity for your PSC role as well as your director role. Verifying for your PSC role will need to be done within 14 days of the company’s confirmation statement date.
• If you are a PSC but not a director of the same company, then you will be required to verify within the first 14 days of your birth month. For example, if your date of birth is 20 December, your 14-day period begins on 1 December.
• If you become a PSC after 18 November 2025, you need to verify within 14 days of being added to the Companies House register.
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How to verify

Verification can be carried out in one of two ways: directly through Companies House using GOV.UK One Login, or via an Authorised Corporate Service Provider (ACSP) such as our firm.

Verified individuals will receive a personal code through the service. They will then need to provide this personal code and a verification statement for each company role they hold.

4.   Directors’ Report Requirement to Be Removed

As part of its move to reduce ‘red tape’ and aid business growth, the government has announced plans to remove the requirement for companies to include a directors’ report as part of their annual accounts.

Micro-entities are already exempted from the requirement to include a directors’ report in their accounts; however, it is intended that the requirement will be removed for all companies. It is estimated that this will affect approximately 440,000 companies.

Medium-sized private companies will also be exempted from the requirement to prepare a strategic report as part of their annual report and accounts.

Estimates suggest that these changes could save UK businesses in the region of £230 million each year, and legislation to bring about these changes will be introduced as soon as possible.

5. Renters’ Rights Act Becomes Law in England

The government’s Renters’ Rights Bill has now become law, following Royal Assent last week. The new Act introduces a wide range of changes for private landlords in England.

The details on how and when these new rules will take effect are still to come, but here is a review of some of the key measures that will be introduced.

End of Section 21 evictions

The most notable change is the abolition of Section 21 ‘no fault’ evictions. This doesn’t mean that landlords cannot evict tenants, but they will only be able to do so in certain circumstances.

Tenancy structure

The Act will replace most existing tenancy types with a single system of periodic (rolling) tenancies.

This means that if you use fixed 12 or 24-month contracts, they will no longer be possible. Tenants will be able to give two months’ notice at any time, rather than being tied in for a year or longer.

New ombudsman and registration requirements

A Private Rented Sector Ombudsman will be set up to handle complaints from tenants. Membership will be mandatory for landlords, and the ombudsman’s decisions will be binding.

A new Private Rented Sector Database will also be created. This is to help landlords understand their legal obligations and demonstrate compliance. Tenants will be able to use this when deciding to enter a tenancy agreement. Registration on the database may be necessary before being able to use certain grounds for repossession.

Other measures

Further reforms include:

• A ban on rental bidding. Landlords will be required to advertise a fixed rent and cannot accept offers above this.

• Landlords will not be able to refuse tenants because they have children or receive benefits.

• Tenants will have strengthened rights to request a pet in the property, which the landlord will have to consider and cannot unreasonably refuse.

• Application of the Decent Homes Standard and Awaab’s Law to the private sector, which will impact what is expected with the condition of properties and timescales for repairs.

• Local authority enforcement will be strengthened with the expansion of civil penalties, introducing investigatory powers and requiring local authorities to report on their enforcement activity.

Details on how and when the law will be implemented can be expected over the coming weeks.

Edited by - Peter Burns - Senior Client Manager at England & Company