Changes will mean that there is a verification process around company directors. This will also be done in retrospect, so existing companies will find the same measures apply to them too. For the vast majority of companies, this is not going to be an issue. They are true limited companies with a proper management structure in place.

However, hopefully what this will do, is to identify those who are not. No more hiding behind false names or structured tiers.

There are additional changes in the pipeline that will impact on some limited companies. The first is that they will be required to file digital accounts. Like with Making Tax Digital, this may affect some more than others. For those who are not particularly computer literate, this may be an issue.

Yet for most limited companies, it is likely to be a version of what they have been doing already. Contractors running their own micro or small limited company will need to do this too and will need to provide more information to Companies House.

The current requirement to post a balance sheet is likely to change for small, limited companies to posting a Profit & Loss sheet- it is unknown whether this will be required for micro-entities. Yet this is unlikely to be more than is required from HMRC already.

So, although the proposed changes are potentially quite minor, it is good to be aware. They could affect individual businesses in a range of ways that are unexpected. For example, it could be that the new ID verification will lead to a greater cost to limited companies. It could also be that the P&L sheet needs to be more detailed or is to partially become public knowledge.

There are various ways that this could affect even the most diligent of company directors. Either way, it is worth being aware. If a change is going to come, it is best to be ready for it.