The first takes effect from 1 October 2026 (literally tomorrow) and relates to Right to Work responsibilities in certain labour supply and contracting arrangements.
The second is the ongoing Companies House identity verification transition period, which affects company directors, People with Significant Control (PSCs)and LLP members.
Right to Work Changes from 1 October 2026
Most employers are familiar with carrying out Right to Work checks for employees. However, from 1 October 2026, organisations may need to consider their responsibilities more broadly when engaging workers through certain contractual, subcontracting and labour supply arrangements known as extended liability. See this useful link from the government with more information[gov.uk]
Could This Affect Your Business? 🤔
You may wish to review your current processes if your business uses:
-
Freelancers
-
Contractors
-
Subcontractors
-
Agency workers
-
Labour supplied by another organisation
-
Outsourced service providers
The updated Home Office guidance highlights circumstances where organisations could face liability if illegal working occurs within certain labour arrangements, even where the worker is not a direct employee.
Questions to Consider 💡
As the changes approach, it may be helpful to ask:
-
Do we engage workers through third-party labour arrangements?
-
Are responsibilities for Right to Work checks clearly defined?
-
Can we evidence the checks completed?
-
Do our onboarding processes and contracts reflect our compliance obligations?
-
Are there any gaps in our current arrangements that need addressing?
Review your processes today to ensure your business is ready for these changes, as new Right to Work requirements take effect tomorrow. Acting now will reduce risk and give you confidence that your business is operating compliantly. ✅
Companies House Identity Verification 🏢🛡️
Who Needs to Verify?
The requirement applies to:
-
Company directors
-
People with Significant Control (PSCs)
-
LLP members
Key Dates
Mandatory identity verification began on 18 November 2025, followed by a 12‑month transition period for existing directors and PSCs. Companies House has encouraged individuals to verify as early as possible. 🗓️
What Happens If You Do Not Comply?
Failure to meet identity verification requirements may result in:
-
Financial penalties
-
Restrictions on company filings
-
Inability to form a new company
-
Further enforcement action by Companies House
Non-compliance may also disrupt important company filings when they become due.
Can You Verify Yourself?
Yes. Individuals can verify their identity directly through GOV.UK using GOV.UK One Login at no cost, or choose to work with an Authorised Corporate Service Provider (ACSP).
How Fourpoint Can Help 🙌
At Fourpoint Business Consultancy Ltd, we understand that compliance requirements can feel complicated and time-consuming, especially when you're focused on running your business.
We provide practical support to help businesses understand their obligations, strengthen their processes and prepare for upcoming compliance changes with confidence.
As an Authorised Corporate Service Provider (ACSP), we can also support clients with identity verification requirements, including:
-
Guided identity verification using IDVT technology
-
Support throughout the verification process
-
A documented compliance trail
-
Submission of identity verification statements to Companies House where the required verification standard has been met
Preparing Now Can Save Time Later
The organisations best placed to manage regulatory change are often those that prepare early.
Reviewing your processes now can help you:
-
Reduce compliance risks
-
Strengthen record-keeping
-
Demonstrate due diligence
-
Protect your reputation
-
Avoid unnecessary disruption in the future.
If you're unsure how these changes may affect your business, Fourpoint Business Consultancy Ltd is here to help.
0 comments