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When does the UK government require self-employed people to apply for digital ID by the 2025/2026 tax year?
Executive summary
Government announcements in September 2025 say a new UK digital ID will become mandatory for right-to-work checks “by the end of this Parliament” (i.e., the scheme is to be rolled out before the next general election in 2029) and Companies House identity verification obligations for directors/PSCs start on 18 November 2025 (phased over 12 months) [1] [2]. Available sources do not state a specific legal deadline that forces all self‑employed people to apply by the 2025/2026 tax year; reporting instead links mandatory use to employers’ checks and to staged rollouts [3] [4].
1. What ministers actually announced: a right‑to‑work digital ID, not a self‑employment tax deadline
The Prime Minister and Home Office framed the 2025 policy as a digital identity to be held on phones and used as mandatory proof of the right to work, aimed at tightening illegal‑working controls; Reuters quotes the government saying “every employee” will be required to hold a digital identity document and that employers will need to check it when hiring [1]. The official explainer stresses the role of digital ID in right‑to‑work checks rather than in tax registration for self‑employed people [3].
2. Companies House rules are separate and start 18 November 2025 for company officers
Companies House introduced a distinct, earlier identity‑verification requirement for directors and people with significant control: mandatory identity checks begin from 18 November 2025, with a 12‑month phased rollout and existing voluntary routes since April 2025 [2]. These measures target corporate registry integrity and do not equate to a blanket digital‑ID requirement for all self‑employed or sole traders [2].
3. How self‑employed people are treated in the coverage: not singled out for a tax‑year deadline
Several business and accounting outlets note that the principal effect will be on employers doing right‑to‑work checks and on company officers; commentary on sole traders/self‑employed status indicates they “do not need a right‑to‑work check” in the same way as employees because they administer their own taxes — but this is framed as an interpretation by industry pieces rather than a definitive government instruction about tax‑year compliance [5]. The government materials and briefings emphasise consultation and phased implementation rather than a specific self‑employment digital‑ID deadline by 2025/26 [6] [3].
4. Timing: “by the end of the Parliament” versus sectoral deadlines
Government language reported across outlets places the full mandatory right‑to‑work digital ID “by the end of this Parliament” (i.e., by 2029) rather than a concrete 2025/26 tax‑year cutoff [1] [4] [7]. That contrasts with the discrete Companies House timetable, which gives a precise start date for company identity checks (18 November 2025) and a 12‑month phase‑in [2].
5. Differences in stakeholder perspectives and likely practical impacts
Business groups such as the Institute of Directors urge working with government to make the scheme business‑friendly, highlighting potential efficiencies; some legal commentators question whether mandatory digital ID will change the behaviour of employers who already flout right‑to‑work obligations and warn of added bureaucracy [8] [4]. Industry press links the Companies House obligation to concrete compliance action from late 2025, while wider digital‑ID rollout for right‑to‑work checks is presented as a larger programme to be designed and consulted on later in 2025 [2] [6].
6. What this means for someone self‑employed now or filing 2025/26 tax returns
Available sources do not say self‑employed individuals must “apply for digital ID by the 2025/2026 tax year.” If you are a sole trader who does not employ people, the reporting suggests you are not directly targeted for right‑to‑work checks in the same way employers check employees, and there is no source that sets a tax‑year deadline for self‑employed registration with the new scheme [5]. However, if you are a company director or a PSC, you will face Companies House identity verification requirements starting 18 November 2025 [2].
7. What to watch next and practical steps
The Commons Library and other summaries indicate the government will run detailed consultations on design and implementation later in 2025; those consultations will determine scope, required attributes, and precise timelines for different groups [6] [7]. Practical steps: follow Companies House guidance if you are a director/PSC (deadline 18 November 2025 and a 12‑month phase‑in) and monitor forthcoming government consultations and guidance about the broader right‑to‑work digital ID rollout [2] [6].
Limitations: reporting in the provided set focuses on the right‑to‑work policy and Companies House rollout; none of the cited sources state a statutory requirement that all self‑employed people must obtain digital ID by the 2025/26 tax year, so that specific claim is not supported by the available material [1] [2] [5].