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Dec 202505

Are you ready for Making Tax Digital in April 2026?

budget, general business, self assessment, tax planning
Making Tax Digital for Income Tax is one of the most significant changes to the UK tax system in decades and it becomes mandatory from April 2026 for anyone earning over £50,000 from self-employment and property income. 

This new system will replace the traditional once a year Self-Assessment with a fully digital approach to record keeping and reporting. Instead of a single annual return, affected taxpayers will need to submit quarterly updates and in some cases two sets of quarterly updates if they have both business and property income, along with a final end of year submission. 

With HMRC tightening compliance checks, increasing documentation requirements, and placing much more emphasis on accurate digital records, now is the time to understand what’s changing and prepare your systems before the deadlines arrive.

What does this mean for sole traders and landlords


From 6 April 2026, MTD for Income Tax becomes mandatory for individuals whose gross income exceeds £50,000 (in the 2024/25 tax year).

If your total gross income passes £30,000 in 2025/26, expect the requirement to apply from April 2027 and a further drop to £20,000 is stated for April 2028, meaning most people will eventually fall under Making Tax Digital.

You must keep digital records of income and expenses. For each business, whether self-employment or rental, you will need to send a quarterly update. At the end of the tax year, a final, full digital tax return must be submitted taking into account all income sources.

Here’s how that works depending on your situation:
  • If you’re a sole trader only: 4 quarterly updates + 1 final return = 5 submissions per year.
  • If you have property only: 4 quarterly property income updates + 1 final return = 5 submissions per year.
  • If you both trade AND rent out property: 2 separate sets of quarterly updates (one for business income, one for property) + the final combined return = 9 submissions per year.

Why are HMRC doing this?


The push behind MTD is for greater data, greater transparency, and fewer surprises for both taxpayers and HM Revenue & Customs.

Many sole traders and landlords are still unprepared. One recent survey showed that a significant number remain unaware of the upcoming changes, still rely on spreadsheets or paper, and underestimate the time required for digital record keeping.

HMRC will now expect full digital records, including income and expenses tracked through compatible software, casual bookkeeping (bank statements and spreadsheets) won’t be enough.

How can we help? We are fully MTD ready


As your accountant of choice, we’ve already taken steps to implement MTD compliant processes and software. 
  • We’ll set up software to manage your income and expenses digitally.
  • Keep separate records for self-employment and property.
  • Submit quarterly updates on your behalf.
  • Handle the final year end return and adjustments, including other income types like PAYE, dividends, interest and capital gains etc.

It is a lot, but it also means no more scrambling at year end time and no surprise HMRC investigations and peace of mind that everything is done properly first time.

Act now – April 2026 isn’t far away


It may seem like plenty of time but once you think about the first quarter (April to June 2026), the first deadline (07 August 2026) and all the bookkeeping, it comes around fast. Getting organised now helps you avoid last minute panic and ensures you’re fully compliant from day one.  

For those of you having to start this process in the first batch April 2026 to June 2026. We have already been in touch to let you know you are in the list. We are still very much around for you, if you need to ask any questions on what has been the biggest change sole traders have ever faced.

MTD for Income Tax will bring extra work and more regular filings. But the goal is clearer financial records, fewer tax surprises, and smoother compliance with HMRC.

With the right software, the right support and the right accountant, you can turn this change from a burden into an opportunity to get your finances in order once and for all.

Let’s get ready, April 2026 will be here before you know it.
Nov 202527

Budget 2025: Key Points

budget, general business
The release of this year’s budget comes later than usual, building even more anticipation as businesses across the country have waited eagerly to understand what it means for them. Now that it’s finally here, we can dive straight into the key points, highlighting the measures and tax changes that will have the greatest impact on businesses in the new financial year.

Minimum Wage


Minimum wage will increase from April 2026. The hourly rate for over 21s will rise by 50p to £12.71. Workers aged 18-20 will be seeing an 85p rise to £10.85. With plans for all adults to be on the same hourly rate. 

See table below for a comparison of the minimum wage.

 

21 and over

18 to 20

Under 18

Apprentice

Currently

£12.21

£10.00

£7.55

£7.55

From April 2026

£12.71

£10.85

£8.00

£8.00

Tax Thresholds


The chancellor has confirmed that both income tax thresholds and the equivalent National Insurance contributions thresholds will remain frozen for a further three years until April 2031.

That means the tax-free income threshold (our Personal Allowance) stays at £12,570. The last time the Personal Allowance was increased was prior to 2021, since then it has remained unchanged. 

If your total income in a tax year is £12,570 or less, you pay no income tax. Only the portion above that is taxed, so, someone earning £30,000 would pay income tax only on £17,430 at a rate of 20%.

Tax rate depends on your taxable income.

 

Taxable Income

Tax Rate

Personal Allowance

Up to £12,570

0%

Basic Rate

£12,571 to £50,270

20%

Higher Rate

£50,271 to £125,410

40%

Additional Rate

Over £125,410

45%

Pensions


Starting April 2029, the amount that can be paid into a pension via salary sacrifice while saving on National Insurance will be capped at £2,000. Any contributions above this limit will be treated like standard employee pension payments and will save on Income Tax and not National Insurance.

According to the OBR, removing these tax advantages from salary-sacrifice pension arrangements is expected to generate an additional £4.7bn in National Insurance revenue.

Individual Savings Accounts (ISA)


An ISA is a type of savings account where the interest you earn is completely tax-free. At the moment, you can save up to £20,000 each tax year in a cash ISA.

From April 2027, the Chancellor has announced that the annual cash ISA limit will be reduced to £12,000, the first decrease since 2017. The aim is to encourage more people to invest through stocks and shares ISAs instead.

These are the affects this will have:
  • If you’re 65 or over: Nothing changes. You can still put up to £20,000 a year into a cash ISA.
  • If you’re 64 or under: Your cash ISA allowance will drop to £12,000, but only for new contributions made from April 2027 onwards. Any savings already held in a cash ISA won’t be affected.
  • Stocks and shares ISAs: The annual limit stays at £20,000.
  • Overall ISA limit: Still £20,000 per tax year for everyone, meaning you can continue to spread your allowance across different ISA types as you wish.

Dividends, Savings Interest and Property Income


If you receive dividend income, your tax rates will increase from April 2026. This applies if you hold investments outside a stocks & shares ISA, your total income exceeds the Personal Allowance (currently £12,570) and your dividend earnings are above the annual dividend allowance (currently £500).

Dividend tax rates will rise by 2%: the basic rate will move from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. The additional rate will remain at 39.35%.

Savings interest tax rates will also rise but from April 2027. For those who do pay tax on savings interest, the basic rate will increase from 20% to 22%, the higher rate from 40% to 42%, and the additional rate from 45% to 47%.

Those earning income from property will see similar changes from April 2027. Although this income is currently taxed at the standard Income Tax rates, property income will be given its own set of rates. These will sit 2% above today’s general Income Tax rates: 22% for basic rate, 42% for higher rate, and 47% for additional rate.


The Chancellor confirmed that around 13 million pensioners will receive an above inflation rise to the state pension from April 2026. Both the new and old basic state pension will go up in line with average wage growth, currently 4.8% giving pensioners a meaningful cash increase.

If you’d like to discuss any part of the budget in more detail, please feel free to give us a call or send us a message, we’re here to help. You can read the full budget by clicking here. If you want support planning for the upcoming minimum wage increase and what it means for your business, we can guide you through the numbers so you’re fully prepared. Despite the challenges and changes ahead, keep pushing forward. With the right planning and mindset, we can all work towards a strong finish to 2025 and an even more successful 2026.

May 202530

Companies House ID Verification

business plan, general business

Original Post 30-05-2025 | Updated 21.08.2025


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)

 

From 18 November 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.


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 become mandatory by 18 November 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. Contact us at our Cardiff office or Bridgend office if you want to discuss Companies House ID Verification.

Oct 202217

Changes to the mini-budget

budget, general business

A couple of weeks ago we highlighted main aspects of the previous chancellors mini-budget. A lot has happened in the house of parliament recently and the new chancellor, Jeremy Hunt reverses most of the mini-budget tax cuts.

 

Below you can find the updated version from Jeremy Hunts statement.

 

National Insurance

One of the few things that is staying, is the reversal of the National Insurance social care levy. From 6th November 2022, the extra 1.25% will no longer be added to National Insurance contributions. This means a saving of £330 per year for nearly 28 million people.

 

Originally the extra 1.25% was introduced to fund the NHS, however, this will now be funded through general taxation.

 

Income Tax

The biggest reversal is in the rates of income tax. The ex-chancellor said that income tax will be down to 19% from April 2023, however, this will now not go ahead. It will remain at 20% for now.

 

The abolition of the 45% higher rate income tax has also been reversed. The 45% higher rate income tax band now means that the higher rate earners will pay income tax on earnings over £150,000

 

Corporation Tax

The reversal on corporation tax for companies means that the increase from 19% to 25% will go ahead after all. This will come into action from April 2023. Only businesses with profits of £250,000 or greater will be taxed at the full 25% rate - about 10% of companies in the UK.

 

Any companies with profits of £50,000 or lower, will pay at the 19% rate

 

Benefits

Rules around the benefit system will remain and unchanged. Benefits can be reduced if people don’t actively search for job commitments. Around 120,000 more people on universal credit to be encouraged to actively seek more work, the over 50’s to be given extra time to work with coaches to help them in the return to work.

 

What else has been cancelled?

Other measures that have been cancelled include:

·         VAT-free shopping for overseas visitors,

  • A freeze on alcohol duty. Planned increases in the duty rates for beer, cider, wine and spirits will now go ahead
  • Cuts to the tax paid on shareholders' dividends - the increase introduced in April will now stay in place

 

Energy

A typical household using both gas and electricity would pay no more than £2,500 annually for two years the government said. However, the energy price guarantee now only covers this winter. It will be in place until April next year. A review will look at what measures should be put in place after this date.

 

Stamp Duty

Stamp duty will remain in place. In England, no stamp duty is paid on first £250,000 and for first time buyers, this is increased to £425,000. To check out Wales’ stamp duty rates, please click here

 

These rules seem like they will stay in place now but, as always, we will keep you up to date with the latest

Sep 202223

Mini budget 2022

budget, general business

The chancellor Kwasi Kwarteng has claimed that he has made the biggest tax cuts in a generation. So, what is in his mini-budget?

National Insurance

With the cost of living on the rise it is paramount that the Government step in to help. The biggest announcement from this mini budget is the reversal of National Insurance levy that was introduced in April 2022 by ex-chancellor Rishi Sunak. The extra 1.25% increase was going to be used to help fund health and social care. With the latest turnaround, the funding for health and social care will now come from general taxation. 

The reversal means an extra £330 per year for nearly 28 million people and will start from 6th November 2022. National Insurance is a tax paid by employees, employers and the self-employed. Employees pay National Insurance on their wages as well as income tax, employers pay extra NI contributions for staff, and the self-employed pay National Insurance on their profits.

Income Tax

There are also cuts in basic rate of income tax. Currently at 20% for everyone that earns above the personal allowance, from April 2023 this will be down to 19% Government estimates 31 million people will be getting an extra £170 a year in their pay packets.

45% higher rate of income tax abolished for England, Wales, and Northern Ireland taxpayers and a one single higher rate of income tax of 40% from April 2023.

Corporation Tax

Companies will also benefit as the rise in corporation tax has been cancelled. Corporation tax was due to be increased from 19% to 25% in April 2023, however, now this will not go ahead.

Benefits

Rules around the benefit system have also been changed. Benefits can be reduced if people don’t actively search for job commitments. Around 120,000 more people on universal credit to be encouraged to actively seek more work, the over 50’s to be given extra time to work with coaches to help them in the return to work.

Shopping

Overseas visitors will also benefit as VAT-free shopping to be introduced. This will encourage visitors to spend more while in the UK. Planned increases in the duties on beer, cider, wine, and for spirits have also been cancelled.

Stamp Duty

Stamp duty is paid when people buy a property. No stamp duty is paid currently on first £250,000 and for first time buyers, this is increased to £425,000. This is currently for England, we will have to wait and see what the Welsh Government do for us.

Energy

Energy bills was the one that worried most homeowners. There will be a freeze on energy bills which the government claims will reduce inflation by 5%

Total cost for the energy package to be expected around £60bn for the 6 months from October.

Click here to find out all the other information covered in the mini-budget.

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