Starting or running a limited company in the UK? HMRC is tightening its grip—and directors need to pay close attention
Director Details: What’s Changed?
In an ongoing effort to reduce tax avoidance and improve transparency, HMRC is increasing scrutiny on company directors. Now, more than ever, it’s essential that your personal and company information is correctly registered and up-to-date with HMRC when forming or operating a limited company.
Whether you’re a sole director or part of a larger board, HMRC expects clear, accurate and complete information about:
- Your full name (as per official ID)
- Current residential address
- National Insurance number
- Date of birth
- Your relationship to the company (e.g. director, PSC)
Failing to provide or update these details can cause delays in tax registration, trigger compliance checks, or even result in penalties.
Why the Focus on Directors?
Historically, directors could form companies without much scrutiny—but this has led to abuse. Now, HMRC wants to ensure that individuals involved in company management are clearly identifiable and accountable for their tax and legal obligations.
Combined with Companies House reform under the Economic Crime and Corporate Transparency Act, the direction is clear: greater visibility and traceability for all UK companies and their officers.
🚨 What Happens If You Don’t Comply?
Directors who fail to keep their information accurate or register with HMRC on time risk serious consequences. HMRC is now working more closely with Companies House and other agencies to identify mismatches and gaps in data—and they are not afraid to act.
1. Late Registration Penalties
If your limited company doesn’t register for Corporation Tax within 3 months of starting trading (including issuing invoices or employing staff), you may be fined:
- £100 for missing the deadline
- A further £100 if not registered within 3 more months
- Additional daily penalties of £10 per day after 6 months (up to 90 days)
- Possible tax-based penalties for late submission of accounts or returns
2. Personal Liability
If you’re knowingly trading through a company that hasn’t registered with HMRC, you could become personally liablefor unpaid taxes, especially in cases where fraud or deliberate evasion is suspected.
3. Striking Off or Criminal Prosecution
Companies House may strike off companies that don’t comply with director ID checks or who fail to maintain accurate records. 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
4. Targeted Investigations
Companies with missing or inconsistent director details may be flagged for further scrutiny by HMRC. This can lead to time-consuming investigations, potential freezing of bank accounts, and disruption to business operations.
What You Should Do Now
- Review your company formation documents.
Ensure the information submitted to Companies House matches what HMRC has. - Update your personal records.
Have you moved house? Changed your name? Inform HMRC and Companies House. - Register for Corporation Tax promptly.
Directors must ensure their company is registered within 3 months of trading. - Work with a professional advisor.
At F9 Consulting, we can help you stay compliant and avoid unnecessary penalties.
How We Can Help
We work with new and existing companies across the UK to ensure HMRC requirements are met and maintained. Whether you’re just setting up or reviewing your compliance, we’ll make sure your director records are aligned with current legislation.
✅ Fast Company Formation
✅ HMRC & Companies House Compliance
✅ Tax Registration and Support
✅ Ongoing Director Advice
📞 Call us today on 01277 223278
✉️ Email: sales@f9consulting.co.uk
🌐 Visit: www.f9consulting.co.uk
