Important HMRC & Companies House Changes for Japanese Businesses Operating in the UK

If you operate a Japanese company in the UK, have a UK subsidiary, or are planning to expand into the UK market, several important regulatory changes now require attention. Below are the key developments that every director should know.

Companies House Identity Verification

The most significant reform under the Economic Crime and Corporate Transparency Act (ECCTA) is the mandatory identity verification requirement.

This applies to:

• Company directors
• People with Significant Control (PSCs)
• LLP members
• Individuals filing documents on behalf of companies

Existing companies are moving through a phased implementation period linked to their Confirmation Statement, while new appointments are subject to the new verification requirements. Companies House also allows verification through an Authorised Corporate Service Provider (ACSP) such as an accountant or corporate services provider.

Recommended action: If your directors or overseas shareholders are based in Japan, start the verification process early to avoid delays with statutory filings.

Companies House Has Stronger Enforcement Powers

Companies House is no longer simply a registry.

It can now:

• Reject inaccurate or suspicious filings
• Query information submitted by companies
• Share information with HMRC and law enforcement
• Remove incorrect information from the public register

Businesses should ensure that all statutory records, registered office details, PSC information and director details remain accurate.

Electronic Accounts Filing Is Becoming Mandatory

The government has confirmed that from April 2028, all companies must file annual accounts electronically using approved software. Paper accounts filing and many web-based filing options will be withdrawn.

Businesses should ensure their accounting software and reporting processes are prepared well in advance.

HMRC Continues to Increase Compliance Activity

HMRC continues to increase compliance checks across several areas, including: Corporation Tax, VAT, Payroll and PAYE, Directors’ loan accounts, Employment status (IR35), R&D tax relief and Cross-border transactions

Japanese parent companies with UK subsidiaries should ensure that intercompany charges, transfer pricing documentation and VAT treatment are properly documented.

Making Tax Digital (MTD)

Making Tax Digital continues to expand over the coming years, requiring more businesses and individuals to maintain digital accounting records and submit information electronically to HMRC.

Businesses still relying on spreadsheets or manual bookkeeping should begin planning their transition to compliant software.

Higher Companies House Fees

Companies House increased many statutory filing fees from 1 February 2026 as part of funding its expanded compliance and enforcement role. Businesses should budget for the revised fees when planning incorporations and statutory filings.

Advice for Japanese Businesses in the UK

If your business is:

• Establishing a UK subsidiary
• Employing staff in the UK
• Registering for VAT
• Expanding into the UK market
• Managing UK–Japan cross-border transactions

It is increasingly important to ensure both Companies House and HMRC compliance. Early planning can help avoid penalties, filing delays and unnecessary tax exposure.

How We Can Help

We specialise in supporting Japanese businesses operating in the UK, providing:

• UK company formation
• Companies House compliance
• Identity verification support
• Corporation Tax and HMRC compliance
• UK VAT advice
• Payroll and pension services
• Cross-border UK–Japan tax advice
• Ongoing accounting and company secretarial services

If you need assistance, our team is here to help. You can get in touch with us to schedule a review or consultation.