The way pay-as-you-earn (PAYE) taxpayers can make a pension tax relief claim has changed with HM Revenue and Customs (HMRC) confirming all claims must be made online or by letter and include supporting evidence.
Given the major changes to Companies House, Making Tax Digital (MTD), and various other regulations in a short space of time, it is no wonder that business owners can be feeling a bit confused about their current obligations.
During the 2024 Autumn Budget, Chancellor Rachel Reeves announced that from 2027, unused pension pots will be taken into account when working out the total value of an individual’s estate.
The Chancellor Rachel Reeves has announced she will deliver her Autumn Budget on Wednesday, 26 November 2025.
After months of uncertainty, Companies House has set the identity-verification deadline as 18 November 2025.
From that date, all new company directors and People with Significant Control (PSCs) must verify their identity.
Existing directors and PSCs will then have 12 months to complete verification, which means 18 November 2026 is the true identity verification deadline.
How should directors prepare?
If you are a new director, verify your identity before your first filing.
If you are an existing director, 18 November 2025 begins a transition year as you must be verified before your company’s next confirmation statement.
You will need to supply Companies House with your personal code and a verification statement for each director listed.
If any directors or PSCs are overseas or likely to be delayed, contact them now.
Directors with multiple companies must link the same personal code to each role separately.
Check your next confirmation date on the Companies House website, and if you need help, get in touch with our team.
How should PSCs prepare?
PSCs must provide their personal code via an online service.
Each PSC has a 14-day window to submit their code, and exact dates depend on when the PSC was registered and whether they are also a director.
If you have already verified your identity, you still need to supply your personal code and a verification statement for each role.
How do you verify?
You can use the DIY option via GOV.UK One Login or use an Authorised Corporate Service Provider (ACSP).
However, using an ACSP is the easy option if you want to ensure that there are no issues with getting your identity verified.
ACSPs can manage the entire process, reduce errors and submit filings on your behalf.
Only registered ACSPs may verify identities, so be sure to avoid unregistered third parties. We are a registered ACSP Services provider, so we are able to complete the Companies House identity verification on your behalf, saving you the time and distraction of this additional compliance.
Speak to our team to make sure you are ready for the identity verification deadline!
The Treasury is reportedly revisiting Inheritance Tax (IHT) as ministers hunt for extra revenue.
While the Chancellor considers several options, IHT reforms remain a likely avenue, and now may be a good time to restructure your assets to avoid a larger IHT bill.
How could Inheritance Tax change?
No decisions have been finalised, but several serious proposals are circulating.
The clearest change already announced is that unused pension pots will be brought into the IHT net from April 2027.
That single change will bring many more estates into scope and has already altered planning strategies.
Gifting, a common tool to reduce IHT exposure, is under particular scrutiny.
Policymakers are discussing measures to curb or restrict gifting and may adjust the tapering that currently applies.
At present, gifts made within seven years of death remain relevant to IHT and are taxed at a tapered rate, while those made earlier are generally ignored.
The current rates are:
It is believed that these rules could be subject to change in the Autumn Budget, although nothing is confirmed yet.
What can I do to lower an Inheritance Tax bill?
With uncertainty ahead, the smart first step is to quantify your estate so you know what might be exposed.
For pensions, consider how the 2027 change could shift the tax burden and whether drawing income or adjusting death benefits fits your plan.
It is then time to reassess gifting strategies.
While lifetime gifts still have value, their effectiveness will depend on any reforms brought in by the Chancellor.
Whatever the Chancellor decides, we are ready to help you review and restructure your assets to remain as tax-efficient as possible.
With UK growth slowing to just 0.3 per cent in Q2, business confidence is fragile.
Momentum has faded after a surge in exports ahead of new tariffs earlier this year, while weaker consumer confidence and persistently high household savings add to the uncertainty.
The upcoming Autumn Budget is amplifying concerns with the expectation that the Chancellor will revisit a range of tax-raising measures to manage a potential £50 billion shortfall.
For businesses, this makes planning investment, recruitment and payroll increasingly challenging.
What might be on the table?
Recent reports suggest the Autumn Budget could bring a range of tax changes:
Of course, all of these are speculative, but it is that uncertainty that has the capability to hold back investment.
How you can respond to change
The uncertainty is already affecting recruitment intentions, with more businesses relying on temporary or flexible contracts rather than investing in new, permanent staff.
Consumers are saving more and spending less due to caution around potential tax rises, which is hitting revenues in consumer-facing industries.
Major investment decisions are also being delayed until after the Budget in anticipation of more change.
However, even amid uncertainty, you can take steps to reduce risk:
When the Chancellor unveiled £26 billion in additional taxes and higher employer National Insurance contributions (NIC) last autumn, the impact on business confidence was immediate.
Businesses are now trying to manage:
For labour-intensive industries such as retail, care, and hospitality, these measures pushed up employment costs by several percentage points almost overnight.
Is wage growth under pressure?
While mandated pay increases have provided a short-term boost to lower earners, broader wage growth is stalling.
A new survey prepared by the Recruitment and Employment Confederation (REC) points to starting salaries rising at the slowest pace in over four years.
Payroll budgets have been squeezed to the point where wage increases above statutory minimum are rare.
Between redundancies, job moves, fewer vacancies and career changes, there are more applicants in the job market for employers to choose from.
That supply-demand imbalance has eased pay pressures further, particularly outside specialist and technical fields.
Are businesses reluctant to hire?
The Chartered Institute of Personnel Development reports that only 57 per cent of employers plan to recruit in the next three months, down from 65 per cent just last autumn.
Vacancies for permanent roles may have decreased, but temporary and flexible contracts are helping to fill some of the gaps. However, this reflects caution rather than expansion.
Many businesses are delaying investment until there is clarity on future tax policy in the next Autumn Budget.
What it means for you
Balancing compliance with competitiveness is now a key challenge for employers.
We are working alongside businesses like yours to ease the impact of higher costs through smarter payroll planning, reviewing benefits, and using technology to improve efficiency.
Speak to us about a tailored payroll review and discover where efficiencies can ease the pressure.
The Government’s Making Tax Digital (MTD) for Income Tax is now only a matter of months away.
It is important that you are prepared and understand how the changes could affect you as the phased introduction of this new tax reporting regime begins in April 2026.
For individuals who complete self-assessment tax returns, the way you report and communicate are changing and it is important that you prepare now.
When do the new laws come into effect?
From April 6, 2026, individuals completing Self-Assessment tax returns with an annual turnover or gross income exceeding £50,000 will be required to follow the new MTD for Income Tax legislation.
The threshold will gradually decrease year on year, dropping to £30,000 from April 2027 and £20,000 from 6 April.
Your income tax return from the 2024/25 tax year will determine when the MTD for Income Tax laws apply to you, so if you are likely to be affected from April 2026 and you aren’t prepared yet, speak to our team today.
What will I need to do?
Once you are required to follow the new MTD for Income Tax regulations, you will need to maintain digital account records as paper records will not be accepted.
It is recommended you incorporate cloud accounting software into your current processes to ensure all reporting is accurate.
Whilst it will be possible to continue to report your income using spreadsheets by relying on bridging software, HMRC compliant software is recommended.
As well as maintaining digital account records, you will need to submit quarterly updates to HM Revenue and Customs (HMRC) and confirm your tax position at the end of the tax year.
Your updates must be submitted through the HMRC app or through an external agent, such as an accountant who can file the updates on your behalf.
Act and prepare now
Preparation is key because you will need to change your Self-Assessment processes to deal with quarterly reporting and get comfortable using software and technology to submit information to HMRC.
The Government’s plan for small businesses, also known as The Backing Your Business Plan, is being introduced to support SMEs growth and development.
The plan has been created to give businesses the ability to grow and help them realise their maximum potential.
Increased access to financial support
The UK has one of the lowest levels of business borrowing in the G7.
This has prompted change, with the Government increasing the British Business Bank’s financial capacity to £25.6 billion, meaning more funds are available for small businesses.
In addition to this, they are expanding the Start-Up Loans programme and increasing the capacity of the ENABLE Guarantee Scheme by £3 billion.
The increased capacity also includes a mandatory code of conduct for accredited lenders to ensure their personal guarantees are fair.
The small business plan is for all business owners from all backgrounds and the latest financial support reflects this.
The plan also includes creating a new £400 million Investor Pathways Scheme, an extension to the British Business Bank’s Regional Angels Programme and the Nations and Regions Investment Fund.
Improving SME skills
The Government’s plan also includes measures to encourage staff growth and development, as well as a pledge to improve access to artificial intelligence (AI) and digital skills.
A £1.2 billion investment will be made each year by 2028/29 to help small business owners improve the skills of their team.
More apprenticeships are being launched with courses for digital skills, AI and engineering to launch from April 2026.
There will also be an Employer Support Fund set up for SMEs to help with the T Level placement costs. The Government hope to have this available during the 2025/26 financial year.
Ending late payments
Late payments have long been an issue for SMEs, so the plan will give the Small Business Commissioner new powers, including the ability to issue fines against companies that persistently pay their suppliers late.
Additional legislation will also ensure the mandatory payment of interest on all overdue invoices, thereby preventing late payers negotiating better compensation rates than the current statutory rate.
A plan to support growth
The Government’s plan focuses on business development with a determination to kick-start economic growth and grant SMEs more clout to hold late payers to account.
Want to learn more about how this new plan may affect you and your business? Get in touch today.
