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On 8 April 2025, Companies House introduced identity verification for those who make filings on behalf of a business.

It is currently a voluntary process, but will become mandatory for new businesses by the end of the year and mandatory for everyone within 12 months of their most recent filings.

Who needs to verify their identity, and how do they do it?

You will need to have your identity verified to ensure you can file with Companies House if you are any of the following:

• A director
• A Member
• A general partner
• A managing officer
• A person with significant control
• Or someone who files for the company, like a company secretary

As with most identity verification, the accepted forms of photo ID are:

• Biometric passports from any country
• UK full or provisional photo driving licences
• UK Biometric Residence Permits and Cards
• UK Frontier Worker Permits

You may also need your current address and the year that you moved in to verify your occupancy in the UK.

Verifying your identity is free when done directly with Companies House and will involve using your GOV.UK One Login and providing the relevant evidence.

Alternatively, you can have your identity verified by an Authorised Corporate Service Provider (ACSP). Your accountant will likely be registered as an ACSP.

ACSPs have committed to upholding anti-money laundering regulations and can make filings on behalf of businesses, as well as verifying identities.

Those in limited partnerships must use an ACSP for identity verification and filings as of 2026.

Once an identity is verified, it will remain so until any significant details change, such as changes to your name or address.

To stay compliant with the Companies House changes, speak to our team today!

How much State Pension you get depends on your National Insurance (NI) record when you reach the State Pension age.

Gaps in your NI record could affect how much you receive. Unfortunately, too many sole traders are still missing out on the full State Pension due to a range of factors.

Why are National Insurance Contributions important?

A full State Pension requires 35 years of NI contributions or credits.

Missing even a few years can have a significant impact on the amount you receive, leaving you with less financial security in retirement.

Furthermore, if you do not meet the minimum of ten qualifying years, you will not receive a State Pension at all.

Why are sole traders missing out?

Employees usually have their NI contributions paid for them by their employer, but sole traders must pay the contributions themselves.

Unfortunately, many sole traders do not realise that they need to make these payments to qualify for the State Pension.

How do I make National Insurance contributions?

You can make NI contributions as part of your Self-Assessment tax return.

Furthermore, if there are periods when you are out of work, you can use NI credits to cover any shortfalls in your contribution record.

You can also claim NI credits if you are out of work due to childcare responsibilities or illness.

For example, those claiming Child Benefit are eligible to claim NI credits.

You can check your NI record and top up your NI contributions through the Government Gateway.

Prepare for your retirement with a full State Pension

Your NI record plays a key role in determining the value of your State Pension, so it is essential to keep on top of your NI contributions and fill any gaps in your record.

By staying proactive about your NI contributions, you will avoid any nasty surprises when you reach the State Pension age.

If you think you might be missing out on the full State Pension, we can help.

Contact us today for further guidance on making NI contributions and protecting your State Pension.

It is not uncommon for directors of a company to take loans from the business during each financial year, often to cover unexpected bills.

However, you must keep track of any directors’ loans – money withdrawn from the company that is not a salary, dividend, or business expense repayment or a loan made by a director to the company – in a directors’ loan account (DLA).

A DLA is crucial for establishing your personal and company tax obligations.

There is no legal limit on how much you can borrow, but if you withdraw more than £10,000 from your company, then interest or a Benefit in Kind charge must be paid by the director.

Here are three easy ways to manage your directors’ loan accounts:

Interest on loans

Your company has the freedom to set the interest rate on any loan it provides to a director.

That said, if the interest is set below HMRC’s official rate, the difference could be treated as a taxable benefit.

In other words, the director may face a personal tax charge based on the gap between the rate they are paying and the official rate set by HMRC.

It is worth noting that HMRC’s official interest rate is not fixed. It can fluctuate in response to changes in the Bank of England base rate.

Avoid being overdrawn at the financial year-end

Being overdrawn on a DLA can carry a number of significant tax implications.

If the DLA of a close company (i.e., a company with fewer than five directors) is in debit nine months and one day after the organisation’s year end, a tax charge called a Section 455 (S455) will apply at a rate of 33.75 per cent.

S455 is repayable to your company nine months after the end of the accounting period in which the loan was repaid.

However, the time between paying the loan and receiving a tax refund could negatively affect your company’s cash flow, so it is best to avoid being overdrawn at the financial-year end, where possible.

Reduce Corporation Tax on company loans

Corporation Tax is not liable on the money you lend to your company.

If you charge interest on a loan to the company, this will count as both personal income for you and a business expense for the company.

You must report your income on a Self-Assessment tax return, while the company must report and pay Income Tax (minus the interest) at the basic rate of 20 per cent every quarter using form CT61.

Contact us today for further advice on managing your directors’ loan accounts.