Business News

Since November 2025, it has become a requirement for all company directors and Persons with Significant Control (PSCs) to verify their identity with Companies House.

As this must be completed by November this year, it is concerning that many have still not done so.

This verification process is part of the UK Government’s efforts to enhance transparency and prevent fraud under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

To do this, you can use the Government’s own ‘Verify your identity for Companies House’ service, which uses GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP), such as a solicitor or accountant that is registered with the scheme.

The process is simple and requires you to provide proof of identity, such as a passport or driver’s licence.

If you haven’t completed this verification process already, you could face complications when submitting your annual confirmation statement this year.

What’s changing with Companies House?

Companies House now requires all company directors and PSCs to go through the identity verification process.

This applies to both new and existing directors and it’s necessary to ensure your company complies with new anti-money laundering rules.

If you don’t verify your identity, Companies House will block your ability to file documents, such as your annual confirmation statement.

The verification process is designed to enhance the security and legitimacy of company records, making it easier to track the individuals behind UK businesses.

Not submitting it could result in penalties, fines or even the dissolution of your company.

Don’t leave it too late

Make sure you complete the identity verification as soon as possible. Without it, your company won’t be able to submit the required annual confirmation statement and you could face penalties.

Our team at Clemence Hoar Cummings are registered with Companies House as an Authorised Corporate Service Provider (ACSP) and can assist you with the ID verification process.

We know that the Companies House software can be complicated and so we want to assist you with your verification so you can continue to complete your annual filings with ease. 

If you’re unsure about the process and need further assistance with ID verification for Companies House, please get in touch with our team.

With just a few weeks before Making Tax Digital (MTD) for Income Tax comes into effect on 6 April, the countdown is on.

HMRC has been sending letters to thousands of sole traders, landlords and self-employed individuals, warning them their reporting obligations are about to change.

Whether you have received your letter or not, you should act now to ensure you are compliant.

What is MTD for Income Tax?

MTD for Income Tax is HMRC’s move towards a fully digital tax system.

If you are affected, you will need to:

• Keep digital records of your income and expenses
• Use HMRC-compatible software
• Submit quarterly updates to HMRC
• Complete an end-of-year declaration

Quarterly updates will not replace your annual Self-Assessment, but it does mean that you will interact with HMRC more regularly throughout the year.

Who will be affected?

MTD for Income Tax is being rolled out in stages based on your gross income:

• April 2026 – gross income over £50,000
• April 2027 – gross income over £30,000
• April 2028 – gross income over £20,000

Those who fall into the first phase of MTD for Income Tax in April must submit their first quarterly update by 7 August 2026.

You must also keep your digital records accurate from the start of the tax year and file your Self-Assessment return by 31 January 2027.

How can you prepare for MTD for Income Tax?

The time to act is now. You need to move away from paper records and understand your new obligations.

You will then need to choose an MTD-compatible software or use a suitable bridging solution that works for your finances. It is necessary to sign up for MTD for Income Tax, as HMRC will not automatically do this for you. You can then begin digital record-keeping.

HMRC is taking a soft launch approach to MTD for Income Tax and is waiving penalties for the first year, but you must still remain compliant.

How we can help you

Our team can advise you on your reporting requirements, help you implement the right software solution and handle quarterly submissions on your behalf.

For further advice or support, get in touch today.

As the deadline for Self Assessment passes, new data from HMRC shows that taxpayers paid a staggering £325 million in fines and interest last year after failing to meet the 31 January deadline.

Recent analysis of HMRC’s publicly available statistics found that around 600,000 individuals were hit with penalties for filing or paying late, which serves as a clear warning to those who still have returns or payments outstanding.

Fines for late tax returns and payments

HMRC’s systems automatically issue a £100 penalty for missing the filing deadline, even if no tax is owed, with further fines issued if payment or filing of a tax return isn’t completed within certain time frames.

Fines for late filing are as follows:

Fines for late payments are as follows:

HMRC estimates that £8.7 billion of Self Assessment tax went unpaid in the 2023/24 cycle. This represents 12.5 per cent of the £69.6 billion it expected to collect for the year.

Across all taxes, around £44 billion is now overdue, with the vast majority already in line for formal debt collection.

Be prepared for Self Assessment

For many taxpayers, the real issue is a lack of preparation rather than an unwillingness to pay.

Underestimating a tax bill, poor record keeping or leaving everything until the last minute can lead to panic and costly mistakes.

Once penalties and interest start to accumulate, the situation can quickly spiral out of control.

Setting aside funds throughout the year and seeking advice well before the deadline can make a significant difference.

If you are unsure about your Self Assessment obligations or are worried about an existing liability, speak to us as soon as you can.

Energy bills, staffing, borrowing costs, taxes and supplier expenses are just a few of the reasons behind the added financial pressure business owners are currently facing.

As we get closer to the new tax year, it is the ideal time to review your business plans and check that your pricing strategy remains fit for purpose.

Why you should review your pricing strategy now

Reviewing pricing regularly is a key part of maintaining a viable and sustainable business.

Many businesses set prices once and only revisit them when they encounter challenges.

If you leave your prices unchanged for too long, especially amid current economic pressures, you are likely to see your profit margins shrink.

A more regular review can help avoid this.

How to review your pricing strategy

Before making any changes to your pricing strategy, ask yourself:

• Have your business costs increased in the 2025/26 tax year?
• Have you added any new services or products, or upgraded older ones?
• Are your prices in line with what your competitors charge?
• Are your current prices still yielding a sustainable profit?
• Have your customers’ needs, budgets or buying behaviour changed recently?

These are just a few of the questions we ask our clients to think about.

Pricing decisions should reflect both the value you deliver and the cost of running your business.

If your prices are not covering your overheads or generating sustainable profits, it may be time to increase them.

Need help reviewing your pricing strategy?

We understand that this can feel uncomfortable for some business owners who worry that raising prices will push customers away.

However, most clients are far more focused on the quality, reliability and expertise they receive from the service or product than on small price changes.

As long as increases are fair and correlate to the value you deliver, clients often accept the added costs without issue.

It is good practice to review your prices regularly so that you can make smarter decisions for your business’s future.

Our team are happy to assist you with this, so that you create a strategy that works well for you.

Get in touch if you would like help reviewing your pricing strategy.

Recent media coverage has publicised the possibility of a new tax on people who leave the UK, calling it an “exit tax”.

This type of regime already exists in several countries, including France, Spain, Canada and Australia, and is now being discussed as a possible option for the UK Government to raise revenue.

What is an exit tax?

An exit tax in the UK would impose a levy, likely 20 per cent, on gains accumulated while a person was a UK tax resident.

Unlike Capital Gains Tax (CGT), which applies to assets when you sell them, a regime like this could mean assets, such as shares and property, could be treated as though they had been sold at the point a person leaves the UK.

Tax would then be calculated on the increase in value to date.

What is the current tax situation when you leave the UK?

Currently, individuals who leave the UK can typically dispose of assets after departure without incurring UK CGT, as long as they remain abroad for a minimum of five years.

However, a move towards a more immediate exit tax could have a consequential impact on those considering a change in residence, potentially restricting international mobility.

How could an exit tax affect you?

Business owners would need to take extra care because shareholdings in trading companies, growth shares and other long-term investments may carry unrealised gains.

An unexpected tax charge at the point of departure could prove challenging, particularly where assets are difficult to sell, as the individual may not have the cash available to settle the bill at that time.

What should you do now?

At this point in time, there is no certainty as to whether an exit tax will even be introduced or what it might entail, making it difficult to effectively plan.

However, the ongoing discussions serve as a reminder that decisions around residence, investment timing and business succession should be made carefully, with future implications in mind.

Professional advice can help ensure that long-term plans remain in tandem with your goals. Get in touch today to discuss your tax liabilities.

Small businesses have been given a reprieve, after Companies House confirmed that its plans to require the filing of profit and loss accounts from April 2027 are on hold.

A new update to official guidance confirms that the change will not go ahead on that date, with the reforms currently under review.

Companies House has said businesses will receive at least 21 months’ notice before any new implementation date is introduced.

Reforms under the Economic Crime and Corporate Transparency Act (ECCTA) 2023

The proposal had formed part of wider reforms under the ECCTA 2023, aimed at improving corporate transparency.

Under the original plans, micro entities would have been required to file both a balance sheet and a profit and loss account.

Meanwhile, small companies would have needed to submit a balance sheet, profit and loss account, directors’ report and, where relevant, an auditor’s report.

However, concerns were raised about whether the move struck the right balance between tackling economic crime and placing additional burdens on smaller businesses.

There was also a notable fear that it would make sensitive financial data public that could risk the competitive viability of smaller businesses.

As a result, the timeline has been paused by Companies House while the reforms are reconsidered.

Only a temporary reprieve for small business owners

For many small business owners, this will be welcome news, but it is only a temporary reprieve.

It is important not to see this as the end of the story. The reforms have only been delayed and not scrapped entirely.

A revised timetable could still bring profit and loss accounts into the public filing framework in the future.

Next steps for small businesses

Businesses should continue to keep their financial records in good order and maintain strong internal reporting processes.

Greater transparency remains a clear direction of travel for Companies House and HMRC, even if the pace of change has slowed for now.

We will continue to monitor developments closely and keep you updated as soon as further details are confirmed.

In the meantime, if you require any assistance with your Companies House responsibilities, please get in touch.

Companies House fees have increased from 1 February 2026, affecting both the cost of incorporation of new limited companies and many ongoing reporting requirements.

Many of the fees have increased substantially and it is important that you factor in these additional fees.

For example, the fee for incorporating a limited company is increasing as follows:

Similar increases are being made to the cost of the confirmation statement as follows:

The full list of fee increases can be found here.

Why are the fees changing?

Companies House has said that the increases are used to cover the cost of incorporating companies and support the publishing “of company information worth billions to the UK economy”.

It also confirmed that the additional funding would be used to support its enhanced powers under the Economic Crime and Corporate Transparency Act (ECCTA) 2023.

These allow Companies House to query and remove false and misleading information from its registers.

If you have any additional queries about the increase in Companies House fees, please get in touch.

The Autumn Budget 2025 has brought more changes to business rates and many businesses and property owners could be at risk of higher bills.

Businesses must know if they are affected and seek the right support so they can prepare for any unexpected pressure on their cash flow.

Is the business rates multiplier being reduced?

The Government confirmed that the annual business rates multiplier in England will decrease by between 11.7 per cent and 13.5 per cent.

While this may appear to be good news, most businesses are unlikely to see meaningful savings. Rising rateable values, along with new supplements, mean that many occupiers will be paying more.

The reforms will also introduce a temporary 1p increase in the multiplier in 2026/27 for properties that do not qualify for transitional relief.

What are the changes to Retail, Hospitality and Leisure (RHL) relief?

Retail, Hospitality and Leisure (RHL) relief will reduce again from April 2026.

Properties with a rateable value of up to £51,000 will receive around 20 per cent relief, while those between £51,000 and £500,000 will receive 10 per cent relief.

This follows on from a significant reduction from 75 per cent to 40 per cent in 2025/26.

While this may reduce the burden on larger occupiers who previously funded the relief, smaller businesses may feel the impact through tighter margins.

What does this mean for property owners?

Larger commercial properties with a rateable value above £500,000 will be faced with a super supplement, currently set at around 5.8 per cent.

There will be some protection as the transitional relief annual cap is increasing to 30 per cent.

However, the new Rating List being published late means businesses have limited time to budget.

What are the new cuts to pubs and music venues?

Following backlash from the 2025 Budget, the Government has announced that pubs and live music venues will now get a 15 per cent cut to the new business rate bills from April 2026.

This cut will be frozen for two years and a review will also be conducted on the method used to value them for business rates.

How can we help you prepare?

Businesses should be reviewing their projected rateable values and factoring business rates into their cash flow forecasts.

You must know if you are eligible for reliefs and transitional support and seek advice if you are unsure about how the business rates will affect you.

We can help support your budgeting plans so you can make informed decisions come April 2026.

For further guidance or advice, contact our team today.

From April 2026, the Employment Rights Act will come into effect, bringing reforms to Statutory Sick Pay (SSP) that will affect every employer.

It will change how SSP is calculated and create new responsibilities for employers.

What are the changes to SSP?

One of the biggest changes is the removal of the three waiting days within current legislation. SSP will instead become payable from the first day of sickness, rather than from day four.

This means employers will need to pay SSP for short absences that may have previously gone unpaid.

The Lower Earnings Limit (LEL) will also be abolished and part-time, low-paid and casual workers will now qualify for SSP.

How SSP is calculated will also change and the payment rate will be the lower of:

• 80 per cent of Average Weekly Earnings (AWE)
• The standard SSP flat rate, which is rising to £123.25 per week

SSP will still be based on average weekly earnings, usually calculated over the eight weeks before the sickness absence.

If your employee is already receiving SSP before 6 April 2026, transitional protections will apply.

This protection lasts for the remainder of their 28-week entitlement, provided they do not return to work or end their contract beforehand.

How should employers prepare for SSP changes?

These changes will bring additional responsibilities to your payroll teams and you must start planning now.

This includes:

• Reviewing sickness absence policies to reflect day-one SSP
• Updating contracts and handbooks on waiting days or earning thresholds
• Checking payroll systems can handle percentage-based SSP calculations
• Budgeting and forecasting costs, as more employees will qualify for SSP
• Communicating clearly with employees so new obligations are met

How can we support you?

Our payroll specialists can help you model the financial changes to SSP and make sure your systems and calculations are compliant.

We can also review your policies and help reduce the risk of costly payroll errors.

For further guidance or advice on the SSP changes, contact our team today.