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.

As we step closer to April 2025, change is on the horizon. This is when the new financial year starts and we discuss what could impact our business in the coming months. We’ll explore what is ahead and how to prepare effectively.

National Minimum Wage

The most notable one is the rise in National Living Wage and National Minimum Wage. We are probably familiar with this rising every April.

Take a look at the table below for the hourly rate changes.

The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship.

Personal Allowance

The freeze continues on personal tax thresholds. Your personal allowance is the amount you can earn until you start to pay income tax. The personal allowance is currently £12,570 and set to be until April 2028 where the government will look to review.

 Employer’s NI

Employers NI is also set to rise from 1 April 2025. Currently employers pay NI on employees wages at 13.8% when it hits the threshold of £9,100 however, from April the rate increases to 15% and the threshold falls to £5,000.

 To combat against this, the government have increased the employment allowance. The employment allowance is a credit against the Employer’s NI. Currently it is £5,000 for the year and will increase to £10,500. Once you have used up your Employment Allowance, then you will start to pay Employer’s NI.

Corporation Tax

There are no changes in the rates of Corporation Tax. This means that, from April 2025, the small profits rate will stay at 19% and will be payable by companies with profits of £50,000 or less.

Companies with over £250,000 profit will pay corporation tax at 25%.

Companies with profits between £50,001 and £250,000 will pay tax at the main rate reduced by a marginal relief, providing a gradual increase in the effective Corporation Tax rate.

If you're concerned about budgeting for the latest tax changes, let us know! We are experts in managing budgets and identifying trends to help you make the most of your resources. We can work out whether the Employment Allowance is going to save you money, or cost you money and provide insights and solutions tailored to your needs. Additionally, if you require any extra services, don’t hesitate to reach out—we’re here to accommodate your requests and provide the best possible support. We’re always ready to assist in any way we can!

The latest UK Budget has introduced several significant changes aimed at balancing economic growth with fiscal responsibility. Here's a streamlined summary of the most impactful changes and what they mean for individuals and businesses alike in the government’s own words.

National Minimum Wage

To help tackle the rising cost of living, the national minimum wage will increase to £12.21. This change represents a substantial boost for lower-income earners, designed to provide more financial stability. This increase is likely to benefit millions, particularly in sectors with high numbers of minimum-wage workers, like retail, hospitality, and care.

No Tax Increase for “Working People”

In a bid to provide stability for working individuals, the Budget confirmed that there will be no increases in key personal taxes:

• VAT (Value Added Tax) remains the same.
• Employee National Insurance rates stay fixed.
• Income Tax brackets remain unchanged.

This decision reflects the government’s focus on preserving the disposable income of working households amid challenging economic times. With inflation affecting purchasing power, the decision not to raise these taxes offers some relief to the general workforce.

Employer National Insurance Contributions

Employers will see an increase in National Insurance contributions (NICs), rising to 15% from April 2025. Additionally, the threshold at which employers start paying NI will be lowered from £9,100 to £5,000, a significant change intended to increase revenue.

• Revenue Target: This measure aims to raise £25 billion, which will help fund essential services and reduce the national debt.
• Impact on Businesses: While this will undoubtedly increase costs for employers, the government has introduced measures to mitigate its impact on small businesses, notably by raising the Employment Allowance to £10,500. This allowance increase will help smaller companies offset some of the added employer NI burden, particularly in sectors that are already financially stretched.

Capital Gains Tax (CGT) Rate Increases

The Budget has raised both the lower and higher rates of Capital Gains Tax:

• Lower rate: Increased to 18%
• Higher rate: Increased to 24%

These changes reflect the government’s intent to generate additional revenue from investments and asset sales. For property investors, landlords, and those selling high-value assets, these adjustments could mean a considerable increase in the tax payable on gains, especially with rising property values over recent years.

Reforms for Non-UK Domiciled Individuals

A major shift in the taxation landscape is the abolition of the remittance basis of taxation for non-UK domiciled individuals. Starting from 6 April 2025, a new residence-based regime will take effect, aimed at simplifying tax rules for international residents.

• Key Feature: Under this regime, individuals opting in will not pay UK tax on their foreign income and gains for the first four years of their tax residency.
• Impact: This approach is intended to make the UK a more attractive destination for international talent by removing the complexity of remittance-based taxation, potentially encouraging longer-term stays and investments from foreign residents.

Stamp Duty Changes for Additional Properties

In a bid to address housing affordability and cut down multiple property ownership, the government has raised the higher rates for additional dwellings in Stamp Duty Land Tax. This rate, applicable to second homes, buy-to-let properties, and properties bought by companies, will rise from 3% to 5%, effective immediately.

• Objective: The increase seeks to reduce the number of second homes and investment properties, potentially freeing up more properties for first-time buyers and primary residents.
• Implications: While this may make it costlier for investors and those looking to buy additional properties, it’s a positive move for prospective homeowners struggling with high prices in the housing market.

Welfare Reforms and New Cap

Looking toward the future, the Budget introduced a new welfare spending cap set for 2029-30.  By implementing stricter control measures, the government expects to save £4.3 billion per year. The welfare cap will primarily target reductions in fraud and error, reflecting a commitment to make the welfare system more sustainable without affecting those in genuine need.

Business Rates Relief for Key Sectors

The retail, hospitality, and leisure sectors, which have been particularly affected by recent economic challenges, will benefit from changes to business rates: The small business multiplier will remain frozen and from 2026-27, businesses in these sectors will receive a 40% relief on their rates bills.

This support aims to help these sectors recover and remain viable, especially as they continue to feel the effects of inflation and changing consumer spending habits.

Conclusion

The latest UK Budget introduces targeted measures designed to generate additional revenue, support lower-income workers, and provide relief to small businesses. By balancing increased taxes on certain types of income and assets while protecting the working population from direct tax hikes, the government aims to address pressing economic needs without overburdening households.