News

Why Thinking Like a CFO Can Help You Shape Your Business

| 15-10-2025

For many small and medium-sized business owners, bookkeeping, payroll and VAT returns are seen as a necessary part of their routine. These tasks are essential, but in terms of

Could Your Child Be Sitting on £2,000 Without Knowing It?

| 06-10-2025

New figures show that more than 750,000 young people haven’t claimed their matured Child Trust Funds – savings pots worth an average of £2,242 each.

Autumn Budget 2025 – What Might Be Coming for Businesses?

| 06-10-2025

The Autumn Budget will be delivered on 26 November, but the Chancellor’s recent speech in Liverpool gave us some useful hints about what could be on the

UK and US launch joint task force on the future of financial markets

| 01-10-2025

The Chancellor of the Exchequer, Rachel Reeves, hosted US Treasury Secretary Scott Bessent at Downing Street recently for a joint industry roundtable. The meeting

Building cyber resilience: Preparing for Recovery as Well As Defence

| 01-10-2025

Cyber incidents continue to feature in the news headlines, with airports now joining large UK retailers and manufacturers in experiencing serious disruption to

Businessman banned from acting as director after breaching bankruptcy rules

| 01-10-2025

A businessman has been banned from being a company director for eight years after being found to have acted as a director between July 2013 and July 2015 despite being bankrupt since

Government Signals Further Reform to Business Rates

| 23-09-2025

Small businesses looking to expand premises could soon find it easier following new government commitments to make business rates fairer. An interim report from the Treasury says that the Chancellor will examine ways to tackle

No Change for Inflation and Interest Rates

| 23-09-2025

The Office for National Statistics (ONS) reported last week that the annual inflation rate for August 2025 was 3.8%, unchanged from July. Airfare costs rose at a slower rate over the year; however, food costs continue to increase, reaching 5.1% in August.

State Pension Set for Rise – But More Retirees May Face Tax

| 23-09-2025

From April, people drawing the state pension may see an increase of more than £500 a year, thanks to the government’s triple lock guarantee. The policy means the pension rises each year by whichever is higher: 2.5%, inflation, or average wage growth.

Additional Support for Government Schemes to Help Young People into Work and Training

| 03-09-2025

The Government has announced an extra £45 million to expand support for young people who are not currently in education, employment or training (known as NEETs).

Companies House WebFiling to Switch to GOV.UK One Login

| 03-09-2025

From 13 October 2025, Companies House will require all businesses to use GOV.UK One Login to access WebFiling. This change is part of a wider government move to introduce a single, more secure login system across all online services.

Winter Fuel Allowance: Act Now Before the Deadline

| 19-08-2025

As temperatures begin to drop across the UK, the Government’s Winter Fuel Allowance (WFA) plays a vital role in helping older residents with heating costs. But if you do not want to receive this year’s payment, you’ll need to let HMRC know and opt out by 15th September deadline.

Electric Car Grant Expanded: More Car Models Now Included

| 19-08-2025

Making Tax Digital for Income Tax – Are You Ready?

| 19-08-2025

The government is pressing ahead with Making Tax Digital (MTD) for Income Tax - and it will affect many sole traders and landlords over the next few years. Here’s what’s changing, when it’s changing, and how to get ready.

Seven Things Every Company Director Needs to Know

| 19-08-2025

Becoming a company director comes with a fair bit of responsibility - and not just when things are going well. Whether you're the hands-on type, more of a silent partner, or even directing behind the scenes, all company

Minimum Wage Hourly Rates: Potential Increases in 2026

| 12-08-2025

The Government has published the official remit for the Low Pay Commission (LPC) to begin its work on setting the National Minimum Wage (NMW) and National Living Wage (NLW) rates that will apply from April 2026.

Government Unveils Small Business Plan

| 12-08-2025

The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses. The plan recognises that small businesses make a vital

New Legal Requirement: Directors and PSCs Must Verify Their Identity from November 2025

| 12-08-2025

From 18 November 2025, identity verification will become a legal requirement for all company directors and people with significant control (PSCs).

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For many small and medium-sized business owners, bookkeeping, payroll and VAT returns are seen as a necessary part of their routine. These tasks are essential, but in terms of shaping your business, they can only tell you what has already happened. It can give you a real advantage if you also spend some time thinking like a strategic Chief Financial Officer (CFO). That means using your financial data to plan and forecast so that you make smarter decisions for your business. Bookkeepers record history, CFO thinking shapes the future A bookkeeper’s job is to make sure that the numbers are complete and accurate, but a CFO – or a business owner thinking like one – takes those numbers and asks questions like:

Which customers or products generate the most profit?
How much cash do we really need in the next six months?
Where should we invest resources for maximum impact?

Adopting this kind of mindset can transform how you run your business. The good news is that it’s not that difficult to develop some core skills that will help you to do this. Core skills every business owner can learn

Financial Literacy: Understand P&Ls, balance sheets and cash flows. These aren’t just for accountants; they can be your roadmap for understanding the financial performance of your business.

Forecasting and Budgeting: Forecast what your business income is likely to be, plan for expenses and prepare for seasonal variations.

Key Metrics: Track metrics that matter to your business – cash flow, margins, costs to acquire customers – so that you can make decisions based on data, not just gut feel.

Risk Awareness: Identify risks to your finances early on, whether it’s a slow-paying customer or an investment that’s costing too much.

Just picking one of these areas and making a small improvement can pay dividends. Start small, think big You don’t need fancy software or a finance degree. You could begin with:

Weekly checks on your cash flow.
Reviewing profit margins per product or service.
Setting simple financial goals for the quarter.

Gradually, these habits build the foundation of strategic financial thinking allowing you run your business more confidently and proactively. The bottom line Treating finance as a back-office chore keeps you in the dark. Thinking like a CFO – tracking the right numbers, asking the right questions, and planning ahead – can give you control, clarity, and confidence. Bringing a CFO’s mindset into your business doesn’t mean you need to do it all alone. Sometimes an outside perspective can make the numbers clearer and the decisions easier. That’s where we can help. If you’d like a sounding board to help you step back, see the bigger picture, and plan with confidence, we would be happy to help you!

New figures show that more than 750,000 young people haven’t claimed their matured Child Trust Funds – savings pots worth an average of £2,242 each.

If your children, employees, or even apprentices are aged between 18 and 23, there’s a good chance some of them could be sitting on money they don’t know about.

What is a Child Trust Fund?

Child Trust Funds (CTFs) were set up by the government for children born between 1 September 2002 and 2 January 2011. Each account started with a government deposit of at least £250, and many families topped them up over the years.

The accounts are tax-free, and once the child turns 18, the money becomes theirs. They can either withdraw it or reinvest it.

Why so many are unclaimed

When the scheme was running, if parents didn’t open an account, the government did it for them. Now, according to HMRC, 758,000 accounts are sitting unclaimed.

September is the most common birth month so there is a new wave of 18-year-olds who have just become eligible to claim their savings pot.

How to find out if you’ve got one

If you already know who the provider is, you can contact them directly. If not, there’s a locator tool on GOV.UK – it takes a few minutes to submit a request, and you’ll usually hear back within three weeks.

You’ll need the young person’s National Insurance number and date of birth when using the tool.

A quick reminder for business owners

If you employ young people in this age group, it might be worth mentioning this to them. Some may not know they might have a CTF waiting. A quick word could genuinely make a difference to their finances – and they’ll likely remember you helped point them in the right direction.

See: https://www.gov.uk/government/news/savings-stash-worth-thousands-waiting-for-758000-young-people

The Autumn Budget will be delivered on 26 November, but the Chancellor’s recent speech in Liverpool gave us some useful hints about what could be on the table.

The Chancellor Rachel Reeves appeared to prepare the ground when she said: “We will face further tests, with choices to come, made all the harder by harsh global headwinds and long-term damage to the economy, which is becoming ever clearer.”

Her comments note two factors:

Global headwinds – trade tensions, wars and higher interest rates driving costs up.
The UK’s own productivity problem – the Office for Budget Responsibility (OBR) is due to publish a critical reassessment of the long-term productivity performance of the UK economy.

In short, the message seems to be: don’t be surprised if taxes rise, and don’t expect giveaways.

How might taxes be raised?

It looks as though there will be no change to the main tax rates (Income Tax, National Insurance and VAT). When pressed on whether VAT could rise, the Chancellor said: “The manifesto commitments stand.” She further said that she wants to protect pay packets and “not put up the prices in shops” – which also makes a straight VAT rise unlikely. But she hasn’t ruled out changes elsewhere.

One option for raising money without headline rate rises is to keep tax thresholds frozen. As wages rise with inflation, more people and businesses get dragged into higher tax bands.

Pensions, housing-related tax breaks, and other business reliefs could also be reviewed. The government may frame these as closing “loopholes” rather than introducing new taxes.

Reeves has also confirmed that there could be changes to the legally required biannual forecasts carried out by the OBR. When the mid-year OBR forecasts don’t meet expectations, the resulting speculation about tax changes can lead to wider instability. These forecasts might now only happen once a year, which could help with this.

What this could mean for you

We won’t know the detail until the budget is delivered at the end of next month. But this Budget is unlikely to bring windfalls for business – it looks like it could be more about stability and plugging gaps in public finances.

As ever, preparation is key. Keep an eye on the announcements and be ready to adapt. We’ll be keeping you informed with details of what’s changed following the Budget. As ever, if you would like any personalised advice please give us a call. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/cj6x07j9e43o

The Chancellor of the Exchequer, Rachel Reeves, hosted US Treasury Secretary Scott Bessent at Downing Street recently for a joint industry roundtable. The meeting reaffirmed the close ties between London and New York as leading global financial centres and announced the creation of a new Transatlantic Taskforce for Markets of the Future.

Purpose of the task force

The task force will provide recommendations to both governments on how the UK and US can work more closely together in areas such as:

· Digital assets – exploring both short-term opportunities while regulation is still developing and long-term possibilities for innovation in wholesale digital markets.

· Capital markets – identifying ways to make it easier for UK and US firms to raise funds across borders, reducing unnecessary burdens and strengthening competitiveness.

The task force will feed its recommendations through the existing UK-US Financial Regulatory Working Group and report within 180 days.

See: https://www.gov.uk/government/news/boosting-collaboration-between-uk-and-us-financial-systems-to-drive-innovation-and-growth-in-global-markets

Cyber incidents continue to feature in the news headlines, with airports now joining large UK retailers and manufacturers in experiencing serious disruption to supply chains and services.

While small businesses are unlikely to grab the same headlines, the risks are just as real. For many, a serious cyber-attack could stop their business from trading altogether. That is why it is important not only to think about preventing attacks, but also how your business would recover if the worst happened.

Start with the basics

The National Cyber Security Centre (NCSC) encourages all businesses to adopt the Cyber Essentials programme. This focuses on five straightforward measures that block the majority of common attacks. They cover areas such as keeping software up to date, controlling access to your systems, and protecting your internet connection with firewalls.

These are practical steps that any small business can put in place without needing a large IT team. Some insurers and customers also now look out for Cyber Essentials certification as a reassurance that you take cyber security seriously.

Know what matters most

If your business were hit by an attack, what would you need to keep running at all costs? For some, it might be your customer database. For others, it could be your booking system, your payment processing, or even email.

By thinking this through in advance, you can:

· Identify your most important systems and data

· Decide how you would keep the business going if they were unavailable

· Put in place simple backup and recovery processes so you are not left starting from scratch.

Plan and practice

NCSC advise that the businesses that recover best from disruption are those that have rehearsed their response. This doesn’t need to be complicated. It could mean, for instance:

· Making sure you know who to call – is it your IT support provider, your bank, or the police’s cyber-crime unit?

· Keeping offline copies of important contact details and documents

· Agreeing who in the business will speak to customers or suppliers if systems are down

· Running through “what if” scenarios with your team so everyone knows their role

Leadership matters

Cyber risk is often left to whoever looks after the IT. However, a cyber-attack poses a risk to the whole business. Just as you would take a threat to your cash flow or business operations seriously, cyber risk needs to be considered in the same way. This includes staying informed about and interested in the steps you’re taking as a business to minimise problems.

Next steps

If you want to build the resilience of your business, consider:

· Reviewing NCSC’s advice for sole traders and small organisations to respond to cyber attacks

– Working towards Cyber Essentials certification

· Making a simple recovery plan covering your critical systems and contacts.

No business can guarantee it won’t be targeted, but by preparing now, you can reduce the damage, recover faster, and keep your customers’ trust. See: https://www.ncsc.gov.uk/cyberessentials/overview

A businessman has been banned from being a company director for eight years after being found to have acted as a director between July 2013 and July 2015 despite being bankrupt since 2005.

In addition to this disqualification, he was sentenced to 22 months in prison in October 2024 for contempt of court in an unrelated case involving company transfers made in breach of a freezing order.

The Insolvency Service’s view

The Insolvency Service made clear that bankruptcy automatically prevents someone from being a company director. They say the ban is there to protect creditors and the public, and that investigations into misconduct will be pursued thoroughly.

What this means for business owners

This case highlights the importance of understanding the restrictions on who can act as a company director.

It is also worth noting that even if paperwork at Companies House suggests a directorship has ended, what matters in practice is whether someone is still involved in running the business.

Therefore, if you are considering bringing someone on as a director in your company or to run the business, it is important to check their status first.

If you are facing bankruptcy yourself, it is best to seek advice early so that you can avoid potential complications.

If you need help with company secretarial or insolvency services, please give us a call. We would be happy to help you! See: https://www.gov.uk/government/news/former-manchester-businessman-banned-after-ignoring-bankruptcy-restrictions-to-act-as-company-director-for-two-years

Currently, if a small business opens a second property, it immediately loses all entitlement to Small Business Rates Relief (SBRR). The government now says it will review how SBRR can support business growth.

The report also confirms that from April 2026, permanently lower tax rates will be introduced for shops, pubs, restaurants, and other retail, hospitality, and leisure businesses with a rateable value below £500,000.

Changes to how business rates are calculated are also under review

Business groups have been advocating for changes in the way business rates are calculated. They welcomed the report’s confirmation that the government will also consider moving from the current “slab” model (where the whole property is taxed at the highest rate) to a “slice” model (where tax gradually increases with value).

What happens next

This is an interim report. An update will be provided at the Autumn Budget on 26 November 2025.

If you are looking to expand your business into new premises, business rates are not the only factor to consider. If you would like help formulating or assessing plans for business expansion, why not contact us? We would be happy to help you!

See: https://www.gov.uk/government/news/chancellor-commits-to-explore-pro-growth-tax-reforms-to-support-small-businesses-opening-new-premises

The Office for National Statistics (ONS) reported last week that the annual inflation rate for August 2025 was 3.8%, unchanged from July.

Airfare costs rose at a slower rate over the year; however, food costs continue to increase, reaching 5.1% in August. This is putting pressure on households and hospitality businesses alike.

UK inflation higher than in Europe

Interestingly, the ONS noted that UK inflation seems to be “significantly higher” than in France (0.8%) and Germany (2.1%).

The increase in employers’ National Insurance contributions is thought to be a factor in the disparity, with businesses passing these additional costs onto their customers.

No change in interest rate

The Bank of England’s Monetary Policy Committee (MPC) also met last week to review the current bank rate. With inflation remaining above the 2% target rate, the MPC voted to leave interest rates unchanged.

Takeaways

For businesses, the inflation figures show that costs are still rising. Higher food prices and the knock-on effects of National Insurance are keeping pressure on margins.

The fact that inflation has not climbed further is good news, and European inflation figures suggest there is potential for a lower inflation rate, but it may take some time before there is a real sense of stability.

Careful cashflow planning and regularly reviewing your financials remain key to ensuring that your business continues to grow and thrive.

If you would like advice on how to make your business grow, please get in touch. We are always happy to help you!

See: https://www.bbc.co.uk/news/articles/cderznjj4r7o

The latest figures from the Office for National Statistics suggest that the average earnings growth of 4.7% will be the measure used.

For those on the new state pension (anyone reaching state pension age after April 2016), the weekly amount for a full entitlement is expected to increase to £241.05, or £12,534.60 a year. That’s a rise of £561.60 compared with now.

For those on the old basic state pension, the increase is expected to take the full weekly payment to £184.75, or £9,607 a year, an annual rise of £431.60.

Tax Implications

While this is welcome news for pensioners’ incomes, there’s another angle to consider. The personal income tax allowance – the amount you can earn tax-free each year – is set to remain frozen at £12,570 until 2028. With the new state pension edging ever closer to this level, many pensioners who rely mainly on the state pension could find themselves paying tax for the first time by 2027.

While many pensioners already pay income tax due to other sources of retirement income, this freeze, combined with steady increases in the state pension, will pull more people into the tax net over the next few years.

What This Means for You

Any rise in the state pension will provide some welcome relief against the continuing increases in the cost of living. However, with frozen tax thresholds, the effect on your disposable income may be less than you would first think.

If you would like personalised advice on how your tax position may be affected, please feel free to call us. We would be happy to help you!

See: https://www.bbc.co.uk/news/articles/c62lnzdndkeo

The Government has announced an extra £45 million to expand support for young people who are not currently in education, employment or training (known as NEETs).

This extends the Youth Guarantee trailblazer scheme for another year and is part of working towards rolling out a national Youth Guarantee that will help all 18–21-year-olds have the chance to “earn or learn”.

The Challenge

Recent figures from the Office for National Statistics show 948,000 young people across the UK are NEET.

Reasons for the worsening problem in recent years are thought to include:

Pandemic disruption to learning.
Limited access to mental health support.
A lack of jobs and skills support.

Young people who are NEET often face additional challenges such as health conditions, a lack of qualifications, or being from disadvantaged backgrounds. The long-term impact can include lower pay, higher unemployment, and poorer mental health.

The Trailblazer Schemes

To tackle this, eight local “trailblazer” projects launched in Spring 2024. They’re trialling new ways of identifying young people most at risk of becoming NEET and matching them to local training, apprenticeships or job opportunities.

What is learned from these local schemes will shape the full Youth Guarantee roll-out across the country.

Why It Matters for Businesses

While these schemes are aimed at supporting young people, they could also represent an opportunity for employers:

The schemes may help employers connect with motivated young people looking for a start.

Apprenticeships may be reformed in a way that makes them more accessible and useful for businesses.

Employers who engage with trailblazer programmes may receive support with recruitment, training, and ongoing mentoring.

If your business could benefit from young, enthusiastic recruits, it would be worth keeping an eye on local schemes. You might also want to look at any entry-level roles you have. Could an apprenticeship or training placement be a good fit?

For small and medium-sized businesses, this may create new opportunities to recruit and train young people while receiving government support.

See: https://www.gov.uk/government/news/thousands-more-young-people-to-get-training-and-work-support-as-government-extends-45m-scheme

What’s Changing?

From 13 October 2025, you’ll need to connect your WebFiling account to GOV.UK One Login before you can continue filing.

If you share your WebFiling account with others, only one person will be able to connect each WebFiling account to their GOV.UK Login. Anyone who shares access will need to create their own GOV.UK One Login, using a different email address.

This is part of a wider move as the government intends for GOV.UK One Login to be increasingly used for accessing online services.

What You Can Do to Get Ready

To avoid last-minute issues, here are a few simple steps to take before October 2025:

Check your email addresses – make sure the email you use for WebFiling is current and accessible. If you also use “Find and update company information,” use the same email address for both.

If you don’t already have one, you could set up a GOV.UK One Login in advance, using the same email as your Companies House accounts. This will make connecting smoother.

Check that you have the authentication code handy for each company you file for. You may need to enter it when you connect your WebFiling account to GOV.UK One Login.

Review who has access – if your team shares a WebFiling login, each person will need their own account going forward. Start planning how to manage this.

Think about identity verification – while not compulsory until November 2025, directors and People with Significant Control (PSCs) can verify their identity early using GOV.UK One Login.

If you try to sign into WebFiling after 13 October 2025, you’ll be redirected to connect your account with GOV.UK One Login.

See: https://www.gov.uk/government/news/access-to-companies-house-webfiling-accounts-to-move-to-govuk-one-login

As temperatures begin to drop across the UK, the Government’s Winter Fuel Allowance (WFA) plays a vital role in helping older residents with heating costs. But if you do not want to receive this year’s payment, you’ll need to let HMRC know and opt out by 15^th September deadline.

What is the Winter Fuel Allowance?

The Winter Fuel Allowance is a tax-free payment of between £100 and £300, paid automatically to most people born before a certain date. It’s designed to help with energy bills during the colder months.

The allowance is not means-tested, meaning you can receive it regardless of your income or savings, and it is usually paid directly into your bank account. However, anyone earning over £35,000 will need to repay the Winter Fuel Allowance unless they choose to opt out. If they do not, HMRC will automatically recover the payment through their tax code in 2026/27, or through self-assessment for the 2025/26 tax year.

Who Gets It?

You’re usually eligible if:

You were born before 22 September 1959
You lived in the UK for at least one day during the qualifying week in September

If you already receive a State Pension or other social security benefits (excluding Housing Benefit, Council Tax Reduction, Child Benefit, or Universal Credit), you may get the payment automatically.

Why Would Someone Opt Out?

While most people welcome the extra help, some choose to opt out—for example:

To avoid receiving a payment they don’t need
To reduce their taxable income if they are in self-assessment
To support the Treasury in redirecting funds

The Opt-Out Deadline

If you do not wish to receive the WFA this winter, you must inform the Department for Work and Pensions (DWP) before the deadline. Missing it means the payment will be made automatically.

Deadline: 15^th September 2025
How to opt out:
- Online via the official GOV.UK service
- By phone to the Winter Fuel Payment Centre
- By post, using the official opt-out form

Full instructions are available on the Government website: https://www.gov.uk/winter-fuel-payment/report-change-circumstances

If You’re Keeping It

If you’re happy to receive the WFA, you don’t need to do anything—it will be paid automatically, usually in November or December.

Act Now

Whether you’re planning to keep the payment or opt out, it’s important to be aware of the deadline so you can make an informed choice. A quick phone call or online form is all it takes to opt out, and missing the date means the money will still arrive in your account.

For more information and to make changes to your WFA status, visit the official Government page here: https://www.gov.uk/winter-fuel-payment/report-change-circumstances

The government’s Electric Car Grant (ECG) is now up and running, with more vehicle models eligible for discounts. Initially launched in July, the £650 million scheme offers savings on new electric cars priced at or below £37,000. The discount is either £3,750 or £1,500, depending on the vehicle’s sustainability and is applied directly at the point of sale, with no paperwork required from customers.

The grant aims to make electric vehicles (EVs) more affordable by reducing the upfront purchase price and narrowing the cost gap with petrol and diesel models. This is part of the government’s broader commitment to phase out the sale of new petrol and diesel cars by 2030.

From 9 August 2025, the scheme was expanded to include thirteen more EVs, bringing the total to seventeen models. Brands now on the list include Nissan, Renault, Vauxhall and Citroën, with more expected in the coming weeks as manufacturers’ applications are approved.

Alongside the £650 million in grant funding, the government is investing £4.5 billion to accelerate EV adoption, with Britain already the largest EV market in Europe in 2024 and sales up by almost a third this year.

Tax Advantages of Electric Company Cars

Despite the grant, electric cars are still generally more expensive than petrol or diesel cars. However, for businesses and employees, EVs can also be worth considering because of the tax savings they bring when provided as a company car.

Benefit-In-Kind (BIK) rates for fully electric company cars are currently much lower than for petrol or diesel vehicles. For 2025/26, the BIK rate for zero-emission cars is 3% of the car’s list price, compared to rates often exceeding 20% for conventional vehicles.
Employers may also benefit from capital allowances – in some cases, qualifying new zero-emission cars can attract a 100% first-year allowance, meaning the full cost of the vehicle can be written off against taxable profits in the year of purchase.
There are further potential savings on Class 1A National Insurance contributions for employers, as these are based on the BIK value.

If you would like help assessing whether an electric car purchase would benefit you or your business, please give us a call. We would be happy to help you!

See: https://www.gov.uk/government/news/electric-car-prices-slashed-as-grant-scheme-expands-to-13-more-models

The government is pressing ahead with Making Tax Digital (MTD) for Income Tax – and it will affect many sole traders and landlords over the next few years.

Here’s what’s changing, when it’s changing, and how to get ready.

What is MTD for Income Tax?

Under MTD, sole traders and landlords whose “qualifying income” is above a certain level will need to:

Keep digital business records.
Use HMRC-approved software to send quarterly updates.
Submit an annual final declaration.

“Qualifying income” basically refers to your total gross income from self-employment and property in a tax year, before expenses.

Who Will Be Affected and When?

HMRC have released statistics showing how many will be impacted by the introduction of MTD. Their figures are based on the 2023 to 2024 tax year.

The rollout is happening in stages, as follows:

Qualifying Income	When MTD Becomes Mandatory	Number of People Affected
Over £50,000	6 April 2026	Around 864,000
£30,000 – £50,000	6 April 2027	Around 1,077,000
£20,000 – £30,000	6 April 2028	Around 975,000

In total, about 2.9 million individuals will eventually need to follow the MTD rules.

Are You Ready?

The requirement to send quarterly updates means that you will need to keep up to date with your bookkeeping. Doing it all after the year-end will no longer be an option.

The need to use software will also mean that keeping paper records of your income and expenses will no longer be sufficient.

HMRC’s latest figures show that software use is common but not universal:

Over £50,000 income: 63% already use commercial software.
£30,000–£50,000 income: 49% use software.
£20,000–£30,000 income: 48% use software.

What You Need to Do Now

Check your qualifying income – add up your total gross self-employment and property income for the year.
Review your record-keeping – paper records won’t be allowed.
Consider software options – cloud accounting tools make quarterly submissions easier and keep you compliant.

Don’t wait until the deadline. Switching to digital record-keeping now means you can get comfortable with the software and avoid last-minute headaches.

If you’d like some personalised advice, please get in touch with us. We can help you choose the right software and show you how to use it. If you’d prefer to stay away from software altogether, we can also provide a bookkeeping service.

Whatever the case, we’ll work with you to make the transition smooth and stress-free so when MTD arrives, you’re already ahead of the game.

See: https://www.gov.uk/government/statistics/making-tax-digital-for-income-tax-business-population-statistics/making-tax-digital-for-income-tax-business-population-statistics-commentary

Becoming a company director comes with a fair bit of responsibility – and not just when things are going well. Whether you’re the hands-on type, more of a silent partner, or even directing behind the scenes, all company directors have legal duties under the Companies Act 2006.

Here’s a straightforward look at seven key duties every director should be aware of:

Follow the company’s constitution

Your first duty is to stick to the rules set out in the company’s constitution and articles of association. These documents outline how the company should be run and what powers you have as a director. If you go outside those powers, you could be held personally responsible.

Promote the success of the company

You’re expected to act in the company’s best interests and promote its success. But that doesn’t just mean chasing profits. You also need to think about:

Long-term consequences of decisions.
The interests of employees.
Relationships with suppliers and customers.
The community and environment.
The company’s reputation.
Fairness to all shareholders or members.

And if the company becomes insolvent? Your focus legally shifts to protecting the interests of creditors.

Use your own independent judgment

It’s fine to take advice, but at the end of the day, you’re responsible for the decisions you make. You must use your own judgment and avoid simply doing what someone else tells you – even if they’re another director or major shareholder.

Exercise reasonable care, skill and diligence

You’re expected to do the job to the best of your ability. The law takes into account your personal knowledge and experience. So, if you’re a qualified professional (like an accountant or engineer), you’ll be expected to apply the skill and experience you have in your role as a director.

Avoid conflicts of interest

You need to steer clear of situations where your personal interests (or those of family members) might clash with your responsibilities to the company. This includes things like:

Personal financial interests.
Competing businesses.
Inside knowledge you gained as a director.

If there’s even a chance of a conflict, it should be declared to the board – and any process set out in the company’s articles of association should be followed. This duty even continues after you’ve stepped down as a director.

Don’t accept benefits from third parties

You mustn’t accept perks or gifts from others that could influence your decisions as a director. The only exception might be something like reasonable corporate hospitality, and even then, only if there’s clearly no conflict of interest.

Declare any interest in company transactions

If there’s a chance you could personally benefit from something the company is doing (say, awarding a contract to a business owned by a relative), you must declare it. Letting the board know is essential, and in some cases, you may need to step back from decisions altogether.

Anything else?

There are other general duties to keep in mind besides those listed above. Maintaining confidentiality, not misusing company property, and always acting in good faith would be some further examples.

Being a director isn’t just about a title – it carries real legal responsibilities. If you’re ever unsure about your role or what’s expected of you, please feel free to speak to us at any time. A quick check now could save a big headache later.

While the final figures won’t be confirmed until later in 2025, the direction of travel is already clear. Employers should be prepared for further increases in wage costs in April 2026.

National Living Wage likely to rise again

The Government has reiterated its commitment to ensuring the National Living Wage doesn’t fall below two-thirds of UK median earnings – a benchmark that defines the level of low hourly pay. Based on current forecasts, that means we could be looking at a NLW rate of £12.71 from April 2026, a 4.1% increase.

To put that into context, the current NLW rate for workers aged 21 and over is £12.21, up 6.7% from the previous year.

Narrowing the gap for younger workers

As part of its remit this year, the LPC will be consulting on narrowing the gap between the full NLW rate and the rate that applies to workers aged between 18 and 20 years old. The LPC will be putting forward recommendations on how to achieve a single adult rate in the years ahead.

What should employers do now?

Although the final rates won’t be known until October, these latest estimates are a strong indication of where things are headed. Here are a few things to consider:

Factor these increases in when reviewing your payroll budgets for 2026.

Consider the knock-on effect. If the NLW rises, pay for other roles may need to be adjusted to maintain structure and morale.

Remember employer NICs and pensions. Increases in wages can also affect National Insurance contributions and pension auto-enrolment costs.

Final thoughts

The Government is clear in its aim to raise living standards through wage growth – and the LPC’s remit is designed to support that. For employers, this means keeping a close eye on wage forecasts and planning ahead for higher employment costs.

We’ll keep you updated as more information becomes available. In the meantime, if you’d like help reviewing your payroll plans or budgeting for potential increases, we’re happy to help.

See: https://www.gov.uk/government/news/national-living-wage-estimate-update

The government has launched its Small Business Plan which it believes will help small businesses to grow and encourage entrepreneurs to start businesses.

The plan recognises that small businesses make a vital contribution to the economy, employing 60% of the UK’s workforce and generating £2.8 trillion in turnover.

Here is a breakdown of some of the key measures and how they may impact your business.

Could This Be the End of Late Payments?

Likely not, however the government is promising the toughest late payment legislation in the G7.

They plan to introduce:

A legal requirement for large businesses to pay within 60 days, moving to 45 days over time.
Mandatory interest charges on late payments.
Greater powers for the Small Business Commissioner, including the ability to fine persistent offenders and carry out spot checks.
Audit committees to be legally obliged to scrutinise payment practices.

These reforms could ease cashflow pressures for you and reduce the amount of time spent chasing invoice payment.

Better Access to Finance

The plan includes several measures that could increase access to finance, including:

69,000 Start-Up Loans, paired with business mentoring.
A £3 billion boost to the British Business Bank to help more lenders offer loans.
£340 million in regional equity investment to help entrepreneurs across the UK.
A new Code of Conduct on personal guarantees for government-backed loans.

These changes could mean that there will be more routes to affordable finance.

Cutting Red Tape

The plan promises to make a 25% cut in regulatory admin costs, and to make reforms to the tax and customs system to make things simpler and quicker.

Any time saved on compliance and admin means more time for growing your business.

Other Measures

Other measures included in the plan include targeted support for high street businesses, education and training for the next generation of entrepreneurs, and helping businesses to take advantage of additional opportunities at home and abroad.

To review the Small Business Plan in full, see: https://www.gov.uk/government/publications/backing-your-business-our-plan-for-small-and-medium-sized-businesses

From 18 November 2025, identity verification will become a legal requirement for all company directors and people with significant control (PSCs). This is part of a wider reform under the Economic Crime and Corporate Transparency Act 2023, and it’s set to impact millions of individuals connected to UK companies.

If you’re a company director or PSC, this change will affect you, and it’s important to understand what’s required – and when.

What’s Changing?

From 18 November 2025:

New directors will need to verify their identity when incorporating a company or being appointed to an existing one.
Existing directors will be required to confirm they’ve verified their identity when filing their company’s next confirmation statement – this forms part of a 12-month transition period.
Existing PSCs will also need to verify their identity within a specific 12-month period, depending on their role and date of birth.

Why Is This Happening?

The aim is to make the companies register more transparent and trustworthy, and to help tackle fraud and economic crime. With identity verification in place, it will be harder for individuals to hide behind fake names or false company appointments.

What Does It Mean for Your Business?

This is a one-off process for most people, and Companies House says it will be quick and simple – taking just a few minutes in most cases.

The verification process can be completed via your GOV.UK One Login. Or, you can verify through us, as we are an Authorised Corporate Service Provider (ACSP).

Once the new rules come into effect, it will be an offence to act as a director without being verified.

When Do You Need to Act?

If you’re appointed as a new director or PSC from 18 November 2025, you must verify within 14 days of being registered.
If you’re an existing PSC, your deadline depends on your circumstances:
If you’re also a director, you must confirm that you have verified your identity within 14 days of the company’s confirmation statement date.If you’re not a director, your 14-day deadline starts on the 1st day of your birth month in 2026 (as shown on the Companies House register).

What If You’re Unsure?

Companies House is contacting all companies via their registered email addresses with details and guidance. You’ll also be able to log into Companies House after 18 November to check identity verification due dates for all roles you hold.

If you have any questions or need help, please just get in touch with us. We’ll be happy to help guide you or your company through the new requirements.

See: https://www.gov.uk/government/news/companies-house-confirms-identity-verification-rollout-from-18-november-2025

01233 630000

mg@mageegammon.com

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