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.

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!

As the spring of 2024 unfolds, the Government have unveiled their budget, setting the stage for economic policies, social initiatives, and infrastructure development for the upcoming fiscal year. This pivotal moment not only reflects current priorities but also shapes the nation in the months and years to come. In this blog, we delve into some of the top topics emerging from the spring 2024 budget and their potential implications.

National Insurance

The main topic for the budget was the cut in national insurance again. The chancellor reduced the amount of national insurance employees would pay by 2%. The rate going from 10% to 8% in April 2024. It is estimated that the cut would be worth about £450 a year for someone on a £35,000 full-time salary.

It is estimated that around 29 million workers are set to benefit from the change. The rate of 'class 4' national insurance contributions, which is the main rate paid on self-employed profits of between £12,570 and £50,270, will be cut from 9% to 6% from 6 April. This rate had been due to fall to 8% from 6 April, but the chancellor has taken it one step further today. The self-employed will benefit too as the rate is slashed from 9% to 6%.

Housing

The chancellor confirms plans to scrap the furnished holiday lets regime. The initiative gives tax reliefs on properties being rented out to holidaymakers and make renting out to holidaymakers more profitable than to long-term tenants. The move is expected to raise £300m a year for the Treasury, however a blow to furnished holiday lets owners.

The chancellor also announced the government will reduce the higher rate of property capital gains tax. This is a tax paid on the amount of gain when selling a property. Currently the rate is 28% for higher rate earners, but this is being reduced to 24%

Business and Investment

The VAT registration threshold will be increased from £85,000 to £90,000 from the start of April. This change is estimated to help tens of thousands of businesses.

Benefits and Income Support

The Household Support Fund, which helps people struggling with cost-of-living pressures and was due to close in four weeks' time, will continue for another six months.

Full child benefits to be paid to households where highest-earning parent earns up to £60,000 - the current limit is £50,000. The top of a taper to withdraw the benefit will be raised to £80,000 from £60,000 at the moment.

The chancellor also announces a consultation on child benefit rules, to apply it to collective household incomes rather than for individuals from April 2026.

If there is something you want to know more about, you can call us on 02920 653995 or

01656 530063 to discuss.