Reasons not to go limited and what to be aware of

One of the reasons why Sole Traders transition to become a limited company is to attract customers and suppliers who might otherwise see an independent trader as less established or financially unstable. Some set up dormant companies to reserve a name with a view to making the switch later on. However, the cons of owning a company are about to far outweigh the pros from next month when the government requests new identification verification from directors. This new system is about to affect us all so please make sure you are prepared and know how to protect yourself.

Enter the new GOV.UK One Login (One Login), currently being rolled out to secure personal biometric data from an unsuspecting public to feed into a pre-existing, inter-connected and phased centralised system. Forget the Britcard which was clearly a distraction, this comes with the promise of a more speedy, reliable and 'safe' centralised login service (and accompanying app) which can already be used to access 48 government websites. Companies House is the first to officially request opt-in by company directors and unbeknown to many, there is an alternative which I share with you below.

It is important to know that the government is not sharing the bigger picture and this is not just for company directors. It starts by asking you to opt-in voluntarily using One Login on any one of the government websites until before you know it, you are locked out of any other other means of accessing your data.

Deep-spun security flaws

Perhaps the most important issue to be aware of, and one which is not being widely reported, is that there are serious vulnerabilities in the live One Login service. On 16 May this year, an IT security consultancy discovered that privileged access to One Login can be compromised without detection by security monitoring tools and stated that 3 million users who had already opted in were at risk of data breaches and identity theft. On 21 April, Willow Tohi of Newstarget, reported deep-spun security flaws of the One Login system which were exposed by a whistleblower.

The irony is that even Companies House has security concerns for One Login which tallies with information I have found on this issue. As recently as May 2025, One Login failed to renew its Digital Identity and Trust Framework (DITF) security certification following its lapse. Without pause, the framework continues to be tweeked while continuing to violate the government's own Secure by Design principles. 

Costly digital accounting requirments

You may have read here previously that the qualifying income threshold for Making Tax Digital for Sole Traders hits £20,000 (gross) in April 2028 for the 2027-28 tax year. This means you can only file your end of year return (and quarterly updates) using accredited digital software. However, this threshold no longer applies to company directors as all limited company accounts must be filed digitally from April 2027, meaning you will have to make the switch earlier.

Voluntarily striking off

Another thing to be aware of is how difficult (and costly) it can be to de-register or strike off a limited company voluntarily from Companies House, especially if you have traded within the last 3 months. Some company owners are going through the process of looking into alternative ways to do business before striking themselves off the register. The latter can take up to 6 months to include the publication of a public notice asking for any objections regarding the closure of the company over a 2 month period.

Even dormant companies that have never traded - or not traded in the last 3 months - will need to dispose of assets protected by the company in the correct manner, or these will be automatically returned to the Crown when the company is dissolved.

If you are already limited

If you are a new company director from 18 November this year, you have to verify your identification with Companies House. If you are an existing director, you have twelve months to do so (although I wouldn't wait this long if you want to use the only non-biometric alternative which is currently the Post Office ID Verification Service - see below).

Many will ask their accountants to do this for them using the Authorised Corporate Service Provider (ACSP) route where a text is sent with a link asking you to take a photo of yourself and provide a fingerprint via your smartphone. This means your information will be incorporated into the One Login system by default and you will be charged a fee to do this. It is then simply a question of time before you are hooked into the new Government Wallet which is waiting in the wings to connect government departments and integrate everyone's personal and financial data. 

This final piece will connect government departments (credential issuers), users (credential holders) and verifiers requesting data (credential verifiers). According to keynote speaker, Natalie Jones OBE, at the Think Cybersecurity and Digital Identity for Government event recently: the wallet would underpin a 'national digital identity credential' enabling citizens to verify themselves securely not only across government but potentially in cross-border contexts.

The Government Wallet is not available for public use right now but is already in place to 'securely' save government issued digital documents and show these documents to organisations, businesses and other parts of government to prove things such as your age, identity or eligibility for services.

Postal verification and paper forms

You can avoid this biometric verification trap by presenting your driving licence as photo ID through the Post Office ID Verification Service where you can verify your identity either in person at the Post Office or with bank or building society details and your National Insurance number along with answers to some security questions.

If you come across a request to opt into One Login when you are visiting a government website, click 'NO' and follow the steps to use existing alternative options. This could include sending a paper form (or using your online account where you can still upload things like a copy of your driving licence, bank statements, rental contracts or utility bills). Be aware that these alternative options will no longer be available and any existing online accounts will be closed soon after you opt-in to One Login.

The above is all you need for verifications, registrations, applications, (dated) end of year self assessments and so on with forms available to download and print directly from the internet when you know what you are looking for. You can also phone the relevant department and ask them to send what you need to your address which is something they are still obliged to do for you.

Cash, photo IDs, paper forms and the Post Office

Our most powerful defence aganst biometric tyranny on our journey towards digital autonomy and freedom, comes in the form of using cash, photo ID (driving licence and passport), paper forms, existing online accounts such as HMRC Gateway and Universal Credits, and our beloved Post Office, especially for ID verification and recorded deliveries.

It means your driving licence and passport are going to become precious commodities, especially your driving licence, being the only form of non-biometric ID that can be used for identity verification (on many platforms). It looks like old passports are being phased out with only biometric passports being accepted by government agencies and eVisas no longer counted as proof of identity.

In the name of technological progress, the things we value so highly are being de-valued for their lack of convenience, speed or relevance, and for the sake of an unsafe, unproven, unethical and unwanted centralised biometric monitoring system.

All is not lost

The government needs a lot more than the estimated 4 million (or 11 million according to the government) to opt into One Login. Currently way off target, as ministers were hoping that this figure would reach about 30 million by the end of 2024, even after being warned by the then Chief Information Security Officer that the Government Digital Service, One Login, was carrying a high level of risk.

We still have access to cash, downloadable paper forms, onine accounts and driving licence verification via the Post Office. We must make good use of these alternatives and insist on being able to use them, however inconvenient this may be for us and the government agent or provider.

I am not an expert (please read my disclaimer below) although I have had experience running a limited company and have done enough research to know that I needed to share this information with you to provide a starting point for your research.

If you value your personal, business and financial freedom, never has it been more important for you to understand what is going on and how this is going to affect you. It has been designed to come in fast and trigger information overload, leaving you feeling helpless with no real choice in the matter. This is not the case, and we still have time to derail this entire dystopian project.

If you are a Sole Trader working on your own (perhaps with a separate dormant limited company), I may able to help so please contact me to arrange a free, no obligation call. 

Thank you for reading (and caring) and I look forward to seeing you again soon.

Sue Cartwright AInstAM

Sole Trader Services

Further Information

Various References (including links above)

Security tests reveal serious vulnerability in government’s One Login digital ID system - Bryan Glick, Editor in Chief, Computer Weekly (16 May 2025)

Companies House security concerns with GOV.UK One Login - Western Financial News (9 Jun 2025)

Government’s One Login System Loses Key Security Certification - Bramble Hub (9 June 2025)

GOV.UK One Login faces scandal as whistleblower exposes deep-spun security flaws - Willow Tohi, Newstarget (21 Apr 2025)

One Login security issues have been addressed - minister says - Sam Trendall, Civil Service World (22 May 2025)

Government eyes full adoption of GOV.UK One Login by 2027 - Think Digital Partners (6 Oct 2025)

Secure by Design - Government Publication

UK digital identity and attributes trust framework (0.4) - Government Publication

New roles in the gamma trust framework - Government Publication

Government Wallet - Government Publication

Biometric Information - Government Publication

Verify your identity with Companies House (from 18 November 2025) - Government Publication

ID Branch Verification (documents checked and identity verified) - Post Office Service

Are you confused about company director verification? -  Clare Wills Harrison, Conscientious Currency

Is the digital Britcard announcement a psy-op? - Clare Wills Harrison, Conscientious Currency

How to close a business - Federation of Small Business (Legal & Business Hub)

Closing a limited company (via Companies House) - Government Publication