Baffled business owners have vented their frustration after trying to complete a glitch-hit identity check system being rolled out by Companies House.

It comes as Government officials admitted the new checks would not allow some to complete the process and that they would need to resort to old-fashioned methods, such as visiting a Post Office.

They also acknowledged the system did not comply with cybersecurity standards, which one expert claimed put users at 'significant risk' of a data breach.

Under new rules, six million registered company directors must undergo checks within three months or be unable to file accounts with Companies House. Only 300,000 have done so. 

Many have found the process – which involves linking existing '.gov.uk' accounts with a new app called One Login – fraught with difficulties. Users reported Kafkaesque problems ranging from digital codes failing to appear, an 'infinite loop' of login screens, and the system failing to recognise documents as evidence.

Tom Maddocks, head of Media Training Associates, is pausing his verification 'until they've sorted out all the wrinkles'. He told The Mail on Sunday: 'It's a chunk of my life I won't get back.'

Officials admitted 'essential security features' can affect the process, and conceded that One Login did not meet all standards.

A spokesman said of users of other services: 'The vast majority have no issue with One Login, with more than 10 million proving their identity successfully.

'There are quick, alternative routes, and users can get support. Protecting the security and privacy of Government services is paramount.'