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.

Get in touch to start preparing for MTD for Income Tax.

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.

It can be confusing trying to keep pace with the changes to Companies House since the introduction of the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

The biggest concern around these changes is that if any slip under the radar, you face penalties and fines for noncompliance.

We know that Companies House is committed to tighter scrutiny and greater transparency, but what this looks like is still being ironed out.

As such, we are going to break down the changes that have happened recently, those that are coming soon, and those that may never come to pass.

What has changed with Companies House?

2025 has been a big year of changes for Companies House, as we see the conclusion of the first big wave of reform.

January saw the ability for individuals to apply to suppress a residential address.

This is especially useful for those who may have used their home address, back when the rules around registered addresses were more relaxed.

This is a positive change that allows people to secure their personal data now that standards have shifted.

In the spirit of data protection, overseas entities also gained the ability to apply to protect trust member details if certain criteria were met.

Another positive change saw the increased ease of access to Companies House services through the GOV.UK One Login.

Starting in February, Users of the Find and Update Company Information service were able to use the same login as for other Government services.

This allows for a more streamlined approach to corporate filings in a secure environment.

Springtime saw the focus shift towards identity verification, laying the groundwork before the mandatory deadline in the autumn.

For the first time, third-party providers performing identity verification on behalf of clients had to be registered as Authorised Corporate Service Providers (ACSPs).

This was done to crack down on misfiling, enhance overall compliance and keep an eye out for money laundering all in one move.

With the ACSPs established, anyone who would need their identity verified to make Companies House filings could voluntarily do so.

Remember, if you are:

• 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

You will need to have your identity verified to ensure you can file with Companies House.

What are the upcoming changes?

As mentioned, the biggest upcoming change is the mandating of identity verification.

From the autumn, we have the end of the voluntary registration for identity verification.

All new directors and People with Significant Control (PSCs) will need to verify their identity, while existing ones will have to do so within 12 months.

This means that, by autumn 2026, all relevant identities must be verified, and Companies House will begin clamping down on those that are not.

Before that, though, we have a relatively minor change to round out the summer.

By the end of August, trust-related information on the register will be made available on request.

This is another transparency measure aimed at letting the public know who is involved in businesses, especially those with ties overseas.

Looking ahead to 2026, there is much we do not yet know.

One of the few confirmed changes is the targeting of Limited Partnerships.

These entities will need to file details about partners and control structures with Companies House and will have to verify identity using an ACSP.

Unlike other businesses, they will not be able to self-verify their identity and must use an ACSP.

More information about the upcoming changes in the next five years will be released in the 2025-2030 strategy, which is due to be released later this year.

What changes have been scrapped?

One of the most controversial changes to Companies House regards the publication of Profit and Loss (P&L) forms.

As these are highly sensitive documents, many small businesses are uncomfortable about them being publicly accessible, with many fearing it will sound the death knell for competition.

There have been reports that such measures have been delayed or scrapped, but it is worth noting that this has not been officially decided one way or the other just yet.

All we know for now is that these proposals are deeply unpopular and the Government seems aware of this.

Whether that means it will listen to the will of the people is another matter entirely, though, so it is not quite time to breathe a sigh of relief just yet.

We are on hand to help guide you through the changes to Companies House so that you can stay compliant.

When the 2025-2030 strategy comes out, we will be there to break it down and help you understand what the future holds.

Until then, be sure to get in touch for professional support to help your business thrive.

Don’t get caught out by Companies House changes. Speak to our team today!

The Employment Rights Bill looks set to come into law by the end of the year.

Now is the time for any business that hires staff to sit up and take notice, as the bill will impact the way that your business operates.

We are going to explore some of the more notable aspects, so that your business can plan ahead and stay compliant.

What are the big changes coming in the Employment Rights Bill?

As the name would suggest, the Employment Rights Bill is focused on giving workers more rights and better protections in the workplace.

One of the main ways this is being implemented is with the removal of qualifying periods for a lot of protections, replacing them with day-one protection instead.

This means that every worker will be entitled to:

• Protection from unfair dismissal
• Right to request flexible working
• Parental leave
• Paternity leave

The Bill also seeks to provide increased stability for workers by banning any new zero-hour contracts and forcing employers to change contracts to fixed hours upon the request of the employee.

This is coupled with a ban on ‘fire and rehire’ practices and a greater right to equal pay for agency workers, though this will require them to have worked for twelve weeks.

Bereavement leave is being extended to cover pregnancy‑loss before 24 weeks to give grieving parents more of an opportunity to recover from their loss.

What does this mean for businesses?

The main considerations centre around compliance.

You will need to ensure that you have updated your employees’ contracts to better reflect their rights within the workforce and ensure your payroll processes are equally aligned to account for this reform.

You need to ensure that you do not accidentally infringe upon any of these rights, otherwise, you could face tribunal action, which could lead to compensation costs.

From a financial perspective, the change to the way contracts are managed could be a concern for some businesses.

If your business relies on zero-hour contracts, then you need to assess your financial structure to ensure that you can manage with the new fixed-hour contracts.

There is increasing concern that enhanced leave rights and guaranteed‑hours contracts could increase wage bills and employer National Insurance contributions, as well.

This is set to be felt hardest by SMEs, many of which are already facing pressures from inflation.

As the Bill makes its way through the House of Lords, now is the time for your business to prepare.

While your employees will likely welcome the added protections, a lack of preparation could leave your business in financial trouble as a result.

Seeking professional guidance is the best way to minimise any negative impact that the Employment Rights Bill could have on your business.

Protect your business and understand the cost of your new obligations by speaking to our team today.

The UK unemployment rate has increased to 4.7 per cent from March to May 2025, while the annual growth in employees’ average earnings has slowed to five per cent, according to recent data from the Office for National Statistics (ONS).

Job vacancies also fell in June to 727,000 – the 36th consecutive month of decline.

While this evidences a huge challenge for the working-age population out of work, there are also several problems that businesses could face in the months to come.

Interest rate cuts

It is widely expected that the Bank of England will continue to cut its base rate.

This should make borrowing cheaper, enabling businesses to access and repay loans more securely.

However, lower interest rates could also mean a decreased return on your business savings and investments.

Further employment challenges

Businesses across many sectors are already facing employment challenges due to the recent increase in employer National Insurance Contributions (NICs).

Redundancies, shorter working hours, and replacing permanent contracts with agency roles have become increasingly common, especially in the service and hospitality industries.

The next few months are likely to see more businesses making tough decisions around recruitment.

Restructuring, reviewing staff salaries, and cutting overtime may be necessary for businesses to stay afloat.

However, while these choices may help to cut costs, they could harm your business’s efficiency and service quality.

Make sure any recruitment cost-cutting measures do not lead to a more damaging effect on your brand and reputation, as these are what will affect your business’s performance in the long run.

Budgeting and financial management will be more important than ever

With a range of fiscal and employment challenges ahead, effective budgeting and financial management for businesses will be more important than ever.

If you’re concerned about employment costs and keeping your business financially healthy, seeking advice from an experienced accountant is essential.

Don’t let employment costs get out of hand. Contact us today for urgent advice and guidance.

For a long time, pensions have offered a tax-efficient way to pass on wealth to the next generation.

Under current rules, most defined-contribution pensions sit outside your estate for Inheritance Tax (IHT) purposes.

This can mean they are passed on entirely free from IHT, particularly if death occurs before age 75.

What changes are coming to IHT?

From 6 April 2027, unused pension funds and death benefits will, in most cases, be included in the value of your estate for IHT.

These assets will become liable to up to 40 per cent IHT, depending on the size of your estate and any available allowances.

The exemption that currently allows pensions to be passed to children and other beneficiaries without tax will largely disappear, remaining only when passed to a surviving spouse or civil partner.

The reform applies irrespective of residency. British expatriates living in countries such as Portugal, Spain, France, Cyprus, Malta, or elsewhere will not be exempt from these changes.

With the current IHT thresholds frozen until at least 2030, more families will be drawn into the IHT net as asset values rise with inflation.

What can you do now?

• Review your pension value as part of your full estate.
• Revisit your beneficiary nominations. Leaving pensions to a spouse/civil partner can retain IHT protection.
• Consider drawing more from your pension during retirement to avoid leaving a large pot behind.
• Seek advice on asset restructuring if your estate approaches the IHT threshold.

Pensions containing property or illiquid investments may also require careful planning to avoid rushed asset sales.

Act now, not in 2027!

Early planning can reduce your tax exposure and spare your family from administrative delays later.

Speak to us today to make sure your pension plans are still working for your future.

Many business owners assume artificial intelligence (AI) is only relevant for large corporations.

However, modern tools are already helping smaller firms reduce costs in subtle but powerful ways.

Better supplier pricing

Software can now track pricing trends across your industry, flagging when you are paying more than the market average.

For example, a commercial printer might discover that it is paying above-average for paper stock.

With this insight, it can renegotiate terms or source alternative suppliers, without compromising quality.

Smarter staff scheduling

Using historical data and seasonal patterns, planning tools forecast staffing needs more accurately.

A leisure centre, for instance, might notice spikes in footfall during school holidays.

Automated scheduling ensures the right number of staff are on shift, avoiding overtime costs during quiet periods.

Catching expense fraud

Claim-checking systems automatically flag unusual patterns in staff expenses.

Duplicate mileage, weekend travel or other policy breaches are identified early, preventing overpayments.

Trimming software waste

Unused or underused software subscriptions often go unnoticed.

Monitoring tools highlight where licences are not being used, helping you cut unnecessary costs without disrupting the team.

Tighter stock control

Demand forecasting tools analyse past sales, supplier timelines and seasonal behaviour.

This helps you order more accurately, avoid overstocking and reduce cash tied up in excess inventory.

These savings may seem small individually, but together they can make a real impact on profitability.

None of them require large-scale change, but all of them start with a simple review of your current systems and spending.

Looking to invest in AI and automation? Speak to our team about how to fund innovation.

In today’s interconnected world, cyber‑risk has gone from a simple technical concern to an existential threat for businesses.

Every business should be preparing itself to defend against cyber criminals, but the number of those doing so is worryingly low.

We consider the current state of cybersecurity and what more needs to be done to protect businesses.

How vulnerable are businesses to cybercrime?

Look at the news on nearly any given day, and you will find headlines concerning the latest business to fall victim to cybercrime.

You might think that this would inspire businesses to take every measure necessary to protect against cybercrime, but the opposite seems to be true.

The World Economic Forum has recently published its Global Cybersecurity Outlook for 2025, and the figures reported therein are troubling.

It was reported that 35 per cent of small organisations feel that their “cyber resilience is inadequate” and 49 per cent of public-sector organisations “indicated that they lack the necessary talent to meet their cybersecurity goals.”

At the same time, cybercrime is on an unprecedented economic trajectory.

The report indicated that “scammers have siphoned away more than $1 trillion globally in the past year, costing certain countries losses of more than 3 per cent of their gross domestic product (GDP).”

Businesses should be aware that if cybercriminals can take such dramatic action against countries, that they are not safe.

As cybercrime is more efficient and effective than regular crime, there is little to stop cybercriminals from attacking businesses and organisations until they find success.

This can be done through social engineering, phishing scams, and hacking, though the former two are increasingly popular as humanity remains the greatest vulnerability within a system.

How can businesses protect themselves from cybercrime?

As mentioned, it is the people who work for your business that are the main vulnerability.

Technology developers and cybercriminals are in a constant arms race to surpass each other, so many cybercriminals take the easier route of simply asking for access to a network.

Training your staff is the best preventative measure, and cybersecurity training should be conducted with great regularity.

The World Economic Forum Report highlights the success of the Paris Olympic Games as a model for cybersecurity resilience.

It highlights how it “took two years of preparation, which included large-scale audits, penetration testing and cyber-crisis management exercises.”

“In the end, despite there being a significant number of cyberattacks – more than any previous Olympic Games – few were successful, and none were able to disrupt the Games or key pieces of infrastructure.”

Your business may not be as big a target as the Olympics, but if you handle any sensitive information, then it will feel as important as them.

The loss of revenue and reputation that comes from successful cyber-attacks can damage businesses for years, as trust takes a long time to be reestablished if it ever can be.

Cybersecurity has been too long overlooked and can have significant ramifications for businesses that do not engage with the matter seriously.

We are on hand to help you understand the importance of cybersecurity and the ways that it can impact your financial well-being.

Worried about the financial impact of a cyber attack on your business? Speak to our team today!