The Bank of England held interest rates at 4.25% but signalled that further cuts may be on the horizon. While this can present opportunities for those looking to refinance, borrow, or invest, getting the best deals is all about how prepared you are.

Credit Scores

Whether you’re applying for a personal loan, a business overdraft, or a mortgage, your credit score is key. A better credit profile often gives you access to lower interest rates, better terms, and higher borrowing limits.

It’s not just personal — businesses are being judged too. Especially if you’re running a small or cash-heavy business, you need to show the banks that your income is consistent and traceable. This means banking regularly. If you’re taking in cash, deposit it frequently. Banks and lenders want to see a clear money trail, and this trail heavily influences their decisions.

Identification

A number of people come to us facing delays simply because their names don’t match across official documents. Whether you’ve been married, divorced, or just changed your name, your passport, driving licence, utility bills, and bank statements should all align.

Why? Inconsistent ID records can drag down your credit score or delay financial approvals, especially when you're trying to refinance or borrow.

Budgeting

When it comes to credit scoring and financial health, the basics still matter. Set a budget, pay on time, and don’t miss repayments. These small, consistent habits are the biggest contributors to long-term financial strength.

Payback Criteria

Lenders are getting stricter. Working capital requirements have increased. Before, many banks were happy if you had 1.5 times your loan payment obligations in working capital. Now they want to see 2 times making it so much harder to obtain a loan.

For example, if your business has monthly loan and interest payments of £1,000, you now need at least £2,000 in working capital a month to be considered financially stable in their eyes.

This change is a big deal for small businesses or anyone looking to re-finance.

Plan Now to Take Advantage

• Review your credit score and dispute any error
• Align your ID documents (especially name consistency)
• Build your working capital reserves if you’re a business owner
• Start comparing re-mortgaging or refinancing options now
• Speak to a financial adviser or broker who can help position you before rates change
• Planning ahead is key

Being prepared isn’t just about having money, it’s about showing lenders that you manage it well. The most successful borrowers and businesses are the ones who plan ahead.

If you need help with your credit, your documentation, or just planning your next financial move, we’re here to support you every step of the way.

Big changes are coming to how company directors and individuals with significant control (PSCs) verify their identity with Companies House. As part of a major set of reforms aimed at increasing corporate transparency and accuracy in the register, identity verification will become a key requirement for many involved in running limited companies in the UK.

What’s Changing?

Currently ID verification is on a voluntary basis for:

• Company directors
• Individuals with significant control (PSCs)

Later in the year, from autumn 2025, these requirements will become mandatory for all new company incorporations and new appointments. Existing directors will have 12 months to complete their ID verification from autumn 2025.

While exact dates for full implementation haven’t been confirmed, it's clear that these changes will become compulsory by late 2025.

Who Will This Affect?

These reforms are expected to impact approximately 7.4 million existing directors in the UK. Anyone involved in managing a UK company, or holding significant control over one, will need to ensure their identity is verified through the new process.

It is not only directors and PSCs, third party agents who will be submitting information to Companies House on behalf of others, will now be required to register and verify their own identities.

Why These Changes Are Being Introduced

The enhanced powers granted to Companies House are designed to:

• Improve the accuracy and integrity of company data
• Enhance transparency around who owns and controls companies
• Making it harder to submit false or misleading information

Requiring identity verification ensures Companies House can confidently identify who is filing information and acting on behalf of companies. It also allows for faster detection of agents who may be acting unlawfully, and appropriate action can be taken.

Authorised Corporate Service Providers (ACSPs)

In the future, all third-party providers (such as accountants, solicitors, and company formation agents) will need to register as Authorised Corporate Service Providers (ACSPs) in order to:

• Submit information to Companies House
• Conduct ID verification checks on clients

An ACSP must be a business supervised under Money Laundering Regulations.

We will be becoming an ACSP and will be providing this identity verification service to our clients. While official guidance and full details are still limited at this stage, we’ll be contacting everyone affected as soon as more information becomes available.

What should you do now?

• Be aware that ID verification is voluntary for now, but will likely become mandatory by autumn 2025
• Start preparing for these changes, get your passport and driving licence up to date if they have expired
• Keep an eye on updates from us

We’ll continue to monitor developments closely and keep you informed as further guidance is issued.

Hello and welcome to April — the start of a brand-new financial year! As always, this time of year brings fresh updates from the Government and one of the most notable changes on the horizon is HMRC’s ‘Making Tax Digital’ for Income Tax Self-Assessment which is coming into affect from April 2026.  This is directly affecting small businesses trading through self assessment, and property landlords.

What’s Changing?

If you’re used to submitting a Self-Assessment tax return once a year, things are about to change. HMRC is moving towards quarterly reporting, much like what VAT-registered businesses already do. This means instead of sending in your figures once a year, you’ll now be expected to submit updates every three months, using Accounting software compatible with HMRC, the spreadsheet will become a thing of the past.

Who Does This Affect?

This will roll out in phases:

• From April 2026: If your total self-employed or property turnover is over £50,000, you’ll be required to comply.
• From April 2027: The threshold lowers to £30,000.

This applies to landlords as well as sole traders, so even if you're just renting out property and not running a business, this could still apply to you.

What Should You Do?

If you're likely to be affected, don’t panic. We’ll be in touch with you individually to discuss the best approach and make sure you’re set up well in advance.

It’s worth noting that HMRC has already changed the start date a few times, so we are still in the early days of implementation. Information is a little light at the moment from HMRC side of things, but we’ll keep you updated as soon as we know more.

Here to Help

We know this might feel like a big shift, and it’s perfectly normal to feel unsure about how it will all work. If this news has left you with questions or concerns, please call or message us — we're here to help guide you through it all.

Let’s make this new tax year a smooth one!

Filing your tax return as early as possible comes with several advantages. It removes the stress of last-minute submissions, allowing you to focus entirely on running your business. The self-assessment deadline of 31st January remains unchanged every year, yet HMRC reported that 2.6 million people had not filed their tax returns just two days before the deadline last year.

Missing the deadline results in an automatic £100 fine, with additional penalties for further delays. If your return is more than three months late, daily fines of £10 start accumulating—leading to significant penalties you’ll want to avoid.

You can submit your tax return as soon as April 6th, and filing early comes with a major advantage: you don’t have to pay your tax bill immediately. The payment deadline remains in January, giving you plenty of time to budget for what you owe. Plus, if you’re due a tax refund, filing early ensures you receive it much sooner—unlike those who file in January, when HMRC experiences delays due to high demand.

With a little organisation, you can get your paperwork sorted and your tax return submitted well in advance—leaving you free to enjoy the festive season stress-free. Filing correctly is crucial, as you don’t want to risk overpaying or underpaying your taxes. Seeking professional advice can help ensure accuracy and peace of mind.

Contact us on www.crossaccountingservice.co.uk if you have any concerns regarding your tax return as we are always here to help.