by Acuaccounts | Nov 27, 2025 | accounting, budget, cash flow, latest news
The Chancellor delivered the Autumn Budget on 26 November 2025, outlining a series of measures designed to stabilise the public finances, stimulate long-term growth and ease pressure on the cost of living. Many of the announcements will directly affect SMEs, company directors and self-employed individuals over the coming years.
The Spring Statement 2026 did not introduce major new tax measures, but confirmed a more cautious economic outlook, with lower growth forecasts and continued cost pressures for businesses.
Many of the previously announced changes are now coming into effect from April 2026 and will directly affect SMEs, company directors and self-employed individuals over the coming years.
Taxes, Pensions and Savings
Income Tax and NIC thresholds
Income Tax and National Insurance thresholds will remain frozen from April 2028 to April 2031. As salaries and profits increase, more income will gradually fall into higher tax bands — an important consideration for directors and sole traders.
Salary sacrifice for pensions
From April 2029, the first £2,000 of annual pension contributions made through salary sacrifice will remain exempt from NICs. Any amount above this will attract standard employer and employee NICs. This change will particularly affect owner-managers using salary and pension planning strategies.
National Living Wage and Minimum Wage
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The National Living Wage (21+) will increase by 4.1% to £12.71 per hour from April 2026.
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The National Minimum Wage (18–20) will rise by 8.5% to £10.85 per hour.
These increases will raise staffing costs for many SMEs, especially in retail, hospitality and care sectors.
Dividend, property and savings income
Tax rates on dividends, property income and savings income will increase by 2 percentage points, impacting many company directors, landlords and investors.
Employee Ownership Trusts (EOTs)
Capital Gains Tax relief on disposals to EOTs will be reduced from 100% to 50%, influencing some long-term exit and succession planning structures.
UK Listings Relief
A three-year stamp duty holiday will apply to new UK stock market listings, designed to encourage domestic investment.
Investment and Skills
Apprenticeships
Training costs for under-25 apprentices in SMEs will be fully funded. This may support recruitment pipelines and reduce skills-training costs for smaller businesses.
Travel, Transport and Vehicles
Fuel duty
The temporary 5p reduction in fuel duty has been extended until August 2026, providing ongoing relief for businesses reliant on vehicles.
Electric vehicles (eVED)
From April 2028:
Sector-Specific Measures
Gambling
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Remote Gaming Duty will increase from 21% to 40% in April 2026.
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Online betting duty will rise from 15% to 25% in April 2027.
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Bingo Duty will be abolished from April 2026.
Manufacturing
Electricity prices for manufacturing businesses will be reduced, with further details to be announced.
Drinks industry
The Soft Drinks Industry Levy will be extended to pre-packaged milk-based drinks containing added sugar from January 2028.
Property and HMRC Enforcement
High Value Council Tax Surcharge
From April 2028, a new levy will apply to high-value residential properties:
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£2,500 per year for homes valued over £2 million
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£7,500 per year for homes valued over £5 million
HMRC enforcement
As reinforced in the Spring Statement 2026, HMRC will be granted enhanced powers to pursue tax avoidance schemes, undertake more targeted compliance checks, and act more quickly against suspected fraud, including holding company directors personally accountable where appropriate.
With increased focus on closing the tax gap, businesses can expect greater scrutiny of reporting and record-keeping in the coming years.
Industry Reaction
Federation of Small Businesses (FSB)
The FSB described the Budget as “tax-raising”, warning that increased dividend taxes and pension-related changes could undermine confidence among small firms.
Institute of Directors (IoD)
The IoD welcomed apprenticeship funding but noted that the Budget does little to improve the UK’s growth outlook and increases the overall tax burden on businesses.
What Does This Mean for SMEs and the Self-Employed?
The Autumn Budget 2025 brings a mix of pressure points and opportunities:
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Higher taxes on dividends and asset-based income will affect many company directors and self-employed individuals.
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Wage increases will raise employment costs across multiple sectors.
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Fuel duty relief and fully funded apprenticeships offer some support in the short term.
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Enhanced HMRC enforcement means compliance and record-keeping will be more important than ever.
The overall impact of the Autumn Budget will differ for every business depending on structure, income mix and growth plans. Early planning can make a significant difference in responding effectively to these changes.
If you would like personalised guidance on how the Autumn Budget and the Spring Statement may affect your business or your personal tax position, we are here to help. Contact us at info@acuaccounts.com or call 0203 907 9027 to discuss how we can support your business and cash-flow.
There are also important changes coming with Making Tax Digital for Income Tax. Read more here.
by Acuaccounts | Sep 22, 2025 | latest news
With just two months until Companies House identity verification becomes mandatory on 18 November 2025, UK directors, PSCs, and LLP members face a critical compliance deadline. Despite voluntary verification being available since April 2025, many business leaders have yet to act. Here’s everything you need to know to avoid penalties and criminal liability.
The End of Anonymous Directors
The UK government’s drive to increase corporate transparency reaches a pivotal moment on 18 November 2025. From this “Base Date,” identity verification becomes mandatory for all company directors, Persons with Significant Control (PSCs), and LLP members – marking the end of anonymous corporate leadership in the UK.
This isn’t just another administrative requirement. It’s a fundamental shift toward full transparency in UK corporate governance, designed to combat money laundering, corporate fraud, and ensure those controlling companies can be held accountable.
Who Must Verify Their Identity?
Directors of UK Companies
All directors of UK companies must complete identity verification, including:
- Existing directors who must verify by their next confirmation statement filing date
- New directors appointed after the Base Date (must verify before appointment)
- First directors when incorporating new companies
- Directors of overseas companies with UK establishments (different transitional deadlines apply)
Persons with Significant Control (PSCs)
PSCs are individuals who hold or control:
- More than 25% of shares or voting rights
- The right to appoint or remove the majority of directors
- Significant influence or control over the company
PSCs must verify their identity within 14 days of the first day of their birth month after the Base Date.
LLP Members
All members of Limited Liability Partnerships are included in the verification requirements from the Base Date.
Current Exemptions
Corporate directors, corporate PSCs, and corporate LLP members are currently exempt from individual identity verification. However, this exemption is expected to be removed in future phases of the rollout.
Timeline and Critical Deadlines
Already Available (Since 8 April 2025)
Voluntary identity verification opened through:
- GOV.UK One Login
- Authorised Corporate Service Providers (ACSPs)
Start your verification now
18 November 2025: The Base Date
Identity verification becomes mandatory. From this date:
- All new director appointments require prior verification
- All PSC appointments require prior verification
- New company incorporations require verified directors
- Existing individuals must verify according to their specific deadlines
After 18 November 2025
- Companies House filings without verified personal codes will be rejected
- Acting as an unverified director or PSC becomes a criminal offence
- Penalties may include director disqualification and financial sanctions
How to Verify Your Identity
Option 1: GOV.UK One Login (Free)
The government’s digital identity service offers three verification methods depending on your circumstances:
Smartphone App Verification: Quick digital verification using your phone’s camera and security features.
Online Security Questions: Answer questions based on your credit history and public records.
Photo ID + Post Office: Upload photo identification online, then visit a Post Office for in-person verification.
Complete guidance available here
Option 2: Authorised Corporate Service Provider (ACSP)
Professional service providers can complete verification on your behalf, including:
- Registered accountants
- Solicitors
- Company formation agents
- Other professionals registered with Companies House and anti-money laundering supervisory bodies
This option particularly benefits busy executives, those with complex corporate structures, or individuals preferring professional assistance.
Your Personal Code
Once verified, you receive a unique Companies House personal code that:
- Remains valid across all your company roles
- Doesn’t expire unless Companies House specifically requests re-verification
- Must be used for all future filings (confirmation statements, director appointments, incorporations)
Critical Timing for Different Roles
Existing Directors
Your verification deadline depends on your next confirmation statement filing date after 18 November 2025. If your company’s confirmation statement is due in December 2025 or January 2026, you must verify immediately.
Action Required: Check your confirmation statement due date and verify well in advance to avoid filing rejections.
PSCs (Non-Directors)
Your deadline is 14 days from the first day of your birth month after 18 November 2025.
Example: If your birthday is in March, you have until 14 March 2026 to verify.
Multiple Company Roles
If you hold positions across several companies, verify immediately using the earliest applicable deadline. One verification covers all your roles.
New Appointments
After 18 November 2025, you cannot be appointed as a director or PSC without prior identity verification. Plan accordingly for any upcoming appointments.
What Happens If You Don’t Verify?
Immediate Consequences
- Companies House will reject filings lacking verified personal codes
- You cannot file confirmation statements, director appointments, or company incorporations
- Your company faces potential administrative dissolution for failing to file
Criminal Liability
Acting as a director or PSC without required verification becomes a criminal offence, potentially resulting in:
- Director disqualification (preventing you from acting as a director for up to 15 years)
- Financial penalties
- Criminal prosecution in serious cases
Company Implications
- Inability to file statutory returns
- Potential strike-off from the Companies House register
- Complications with banking, contracts, and business operations
Practical Steps to Take Now
1. Verify Immediately
Don’t wait until November. With thousands of directors likely to verify close to the deadline, you risk:
- Technical difficulties with government systems
- Delays in Post Office verification appointments
- Last-minute stress affecting your business operations
Start verification here
2. Check All Your Company Roles
Review every position you hold:
- Directorships across all companies
- PSC positions
- LLP memberships
Compile confirmation statement due dates to understand your earliest deadline.
3. Consider Professional Support
If you’re time-pressed or manage complex corporate structures, ACSPs can handle verification on your behalf. This ensures compliance without diverting your attention from business operations.
At AcuAccounts, we can manage your Companies House identity verification process, handling the technical requirements while you focus on running your business. Our team understands the compliance deadlines and can ensure all your directors and PSCs are verified on time.
4. Update Your Records
Ensure Companies House has your current contact details so you receive important communications about verification requirements and deadlines.
5. Plan for New Appointments
If you’re planning director appointments or company incorporations after November 2025, ensure all relevant individuals verify their identity first.
Technical Considerations
Document Requirements
Prepare acceptable forms of identification:
- Valid UK or EU photocard driving licence
- UK or EU passport
- UK biometric residence permit
- Other government-issued photo ID
Digital Readiness
Ensure you have:
- Access to a smartphone with camera (for app-based verification)
- Stable internet connection
- Updated browser for online verification
- Alternative verification method planned if technical issues arise
Post Office Verification
If using the photo ID + Post Office route:
- Book appointments well in advance (expect high demand near the deadline)
- Bring original documents and printed verification codes
- Allow extra time for potential queues
The Strategic Perspective
This isn’t just compliance – it’s preparation for the future of UK business regulation. Identity verification represents the first phase of broader transparency reforms that will likely expand to cover:
- Corporate PSCs and directors
- More detailed beneficial ownership reporting
- Enhanced due diligence requirements
- Real-time reporting obligations
Companies and directors who adapt quickly to these digital transparency requirements will be better positioned for future regulatory changes and demonstrate commitment to good corporate governance.
Your Next Steps for Companies House Identity Verification
Week 1: Verify your identity immediately using GOV.UK One Login or contact an ACSP
Week 2: Check confirmation statement due dates for all companies where you’re a director
Week 3: Ensure all PSCs in your companies understand their verification deadlines
Week 4: Plan for any new appointments or incorporations requiring verified individuals
The message is clear: identity verification isn’t optional preparation – it’s mandatory compliance that affects your ability to continue as a director or PSC. Act now to secure your position and avoid the criminal liability that begins on 18 November 2025.
Need Help with Identity Verification?
Don’t navigate these compliance changes alone. At AcuAccounts, we help directors and business owners complete their identity verification requirements efficiently and on time. Contact us at info@acuaccounts.com or call 0203 907 9027 to discuss how we can support your compliance needs.
Essential Resources:
This guidance reflects current government requirements as of September 2025. For specific advice regarding your circumstances, consult with professional advisors familiar with Companies House compliance.
by Acuaccounts | Apr 11, 2025 | accounting, budget, latest news, selfemployed, spring statement, tax
What You Need to Know About Chancellor Reeves’ Latest Announcements
Last updated: April 11, 2025
The Spring Statement delivered by Chancellor Rachel Reeves on March 26, 2025, confirms several significant tax and financial changes introduced in the Autumn Budget that will directly impact small businesses and self-employed individuals. As your financial advisors, we have analysed these changes previously announced in the Autumn Budget to help you understand what they mean for your business and finances.
Key Tax and National Insurance Changes at a Glance – as mostly announced in the Autumn Budget
1. Employer’s National Insurance Contributions (NICs) 📈
What’s changing:
- The employer NIC rate will increase from 13.8% to 15% from April 6, 2025
- The earnings threshold will decrease from £9,100 to £5,000
What this means for you: Employers will pay higher NICs on a larger portion of employee earnings. For a single employee earning £30,000 annually, this represents an additional cost of £865.80 per year. For businesses with multiple employees, this increase will significantly impact your bottom line.
Calculation breakdown:
- Current system (until April 5, 2025):
- Taxable earnings: £30,000 – £9,100 = £20,900
- NICs at 13.8% = £2,884.20
- New system (from April 6, 2025):
- Taxable earnings: £30,000 – £5,000 = £25,000
- NICs at 15% = £3,750
- Increase: £865.80 per employee
Our advice: Review your staffing budget immediately and forecast the impact this will have on your business over the next financial year. Consider whether you can offset these costs elsewhere or if you need to adjust your pricing strategy.
2. Employment Allowance Increase 🎯
What’s changing:
- Employment Allowance will increase from £5,000 to £10,500
- The previous upper eligibility threshold of £100,000 will be removed
What this means for you: This is positive news for eligible employers, who can now reduce their annual NIC liability by up to £10,500. With the removal of the £100,000 threshold, more businesses will qualify for this relief.
Important note: Single-director companies without employees remain ineligible.
Example impact: If your total employer NICs amount to £12,000:
- With the new £10,500 Employment Allowance: You’ll only pay £1,500
Our advice: Ensure you’re claiming Employment Allowance if eligible. This could significantly offset the increased NIC costs outlined above.
3. Business Asset Disposal Relief (BADR) Changes 📊
What’s changing:
- BADR Capital Gains Tax rate will increase from 10% to 14% from April 6, 2025
- A further increase to 18% is planned for April 6, 2026
What this means for you: Business owners looking to sell or dispose of qualifying assets will face significantly higher tax liabilities. On a qualifying gain of £100,000, the tax payable will increase from £10,000 to £14,000 (after April 2025) and to £18,000 (after April 2026).
Our advice: If you’re planning to sell your business or dispose of significant assets in the near future, consider accelerating these plans to complete before April 2025 to benefit from the current lower rate.
4. Capital Gains Tax (CGT) Rate Increases 💰
What’s changing: For disposals made on or after October 30, 2024, CGT rates for most assets (excluding residential property) will increase:
- Basic rate taxpayers: From 10% to 18%
- Higher rate taxpayers: From 20% to 24%
What this means for you: This represents a substantial increase in capital gains tax liability. On a gain of £50,000, a basic rate taxpayer would now pay £9,000 instead of £5,000 – an increase of £4,000.
Our advice: Review your investment portfolio and potential disposals with urgency. If you’re considering selling assets, you may want to complete transactions sooner rather than later.
5. Making Tax Digital (MTD) for Income Tax 💻
What’s changing:
- From April 2026: Mandatory for sole traders and landlords with qualifying income over £50,000
What this means for you: If you fall into this category, you’ll need to prepare for quarterly digital tax reporting. This will require MTD-compatible software and potentially new bookkeeping processes.
Our advice: Don’t wait until 2026. Start reviewing your current accounting systems now and consider adopting MTD-compliant software early to avoid disruption when the requirements take effect.
What Business Organisations Are Saying
The business community has expressed mixed reactions to the Spring Statement:
- Federation of Small Businesses (FSB) has expressed concern over the economic outlook, emphasising the need for immediate action to stimulate growth.
- Institute of Directors (IoD) viewed the Chancellor’s approach as a balanced response to fiscal challenges, noting that while the strategy relies more on increasing tax receipts than spending cuts, there are positive aspects such as planning reforms.
Your Spring Statement 2025 Action Plan
Immediate Actions (April-May 2025)
- Recalculate your employer NIC costs using the new rates and thresholds
- Check your Employment Allowance eligibility and ensure you’re claiming the full amount
- Review any planned business or asset disposals in light of the CGT and BADR changes
- Schedule a tax planning session with us to explore specific strategies for your business
Medium-Term Planning (June-December 2025)
- Reforecast your 2025/26 business budget to account for increased employment costs
- Evaluate your business structure to ensure it remains tax-efficient given the changes
- Begin preparations for Making Tax Digital if you’ll be affected by the 2026 implementation
- Consider reviewing your pricing strategy to maintain margins in light of increased costs
Payroll & Employer NICs Checklist
- Recalculate Employer NICs with the new 15% rate and £5,000 threshold
- Adjust staff budgets to reflect increased NIC costs
- Check Employment Allowance eligibility
- Apply for the increased £10,500 Employment Allowance if eligible
Capital Gains & Business Disposal Checklist
- Review business disposal plans (consider completing before April 2025)
- Check CGT exposure on potential asset sales
- Explore tax-efficient investment alternatives where appropriate
Digital Tax Compliance Checklist
- Prepare for Making Tax Digital for Income Tax (MTD ITSA)
- Check if your current software is MTD compatible
- Consider training needs for you or your team on new systems
How We Can Help
At AcuAccounts, we specialise in helping self-employed individuals and small businesses navigate tax changes efficiently. We can:
- Provide a personalised assessment of how these changes will impact your specific business
- Create tax-efficient strategies tailored to your circumstances
- Help you implement and transition to MTD-compliant systems
- Ensure you’re claiming all available allowances and reliefs
Don’t navigate these complex changes alone. Book a consultation with our specialists today to ensure your business is prepared for the changes ahead. Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027.
Visit our contact page at AcuAccounts Contact for more information.
This article provides general information based on the Spring Statement 2025 and should not be considered as specific tax advice. Tax regulations can change, and individual circumstances vary. Always consult with your qualified accountant before making financial decisions.
by Acuaccounts | Nov 5, 2024 | accounting, budget, latest news, selfemployed
In a historic first, Labour Chancellor Rachel Reeves delivered the first autumn budget by a woman and the first Labour budget in 14 years this October. The announcement brings significant changes for small businesses and the self-employed, with a mix of support measures and increased costs coming into effect from April 2025. You can find the full policy paper here.
Key Takeaways for Small Businesses
Employment Allowance Doubles
In a major win for small businesses, the Employment Allowance will double from £5,000 to £10,500 annually, starting in April 2025. This increase will help shield smaller employers from rising employment costs, allowing a small firm to employ four people on the National Living Wage without paying any employer National Insurance Contributions (NICs). Approximately 865,000 small employers will benefit from this change.
Example: Small Business Employment Cost Savings
Consider a small retail shop with four full-time employees on the National Living Wage (£12.21/hour from April 2025):
- Annual salary per employee: £25,397 (based on a 40-hour week)
- Employer NICs per employee without allowance: ~£2,625
- Total employer NICs for four employees: £10,500
- With the new Employment Allowance: £0 payable in NICs
- Total annual savings: £10,500
National Insurance Changes
However, the budget also brings challenges. Employer NICs will rise by 1.2 percentage points to 15% from April 2025. Additionally, the earnings threshold at which employer NICs apply will be lowered from £9,100 to £5,000. This combination could add over £700 to National Insurance costs for each full-time employee on the National Living Wage, and over £800 for those on the average salary (£29,800).
Example: Impact on Medium-Sized Business
For a business with 10 employees on an average salary of £29,800:
- Current NICs per employee (13.8% above £9,100): ~£2,857
- New NICs per employee (15% above £5,000): ~£3,720
- Increase per employee: £863
- Total increased cost for 10 employees: £8,630
- After £10,500 Employment Allowance: Additional net cost of £3,700
National Living Wage Increase
Small businesses will need to prepare for a 6.7% increase in the National Living Wage, rising from £11.44 to £12.21 per hour from April 2025. For 18-20-year-olds, the rate will increase significantly from £8.60 to £10.00 per hour.
Example: Cost Impact for Different Employee Types
For a small business with mixed staffing:
- Full-time experienced employee (40 hours/week):
- Current annual cost at £11.44/hour: £23,795
- New annual cost at £12.21/hour: £25,397
- Annual increase: £1,602
Part-time young staff member (20 hours/week, aged 19):
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- Current annual cost at £8.60/hour: £8,944
- New annual cost at £10.00/hour: £10,400
- Annual increase: £1,456
Impact on Self-Employed and Company Directors
Single Director Companies
Single directors of limited companies who do not have any other employees face a particular challenge—they will not benefit from the increased Employment Allowance. Those paying themselves through payroll above the new £5,000 threshold will face increased employer NIC costs.
Example: Impact on Company Director For a director taking a salary of £25,000:
- Current employer NICs (13.8% above £9,100): £2,192
- New employer NICs (15% above £5,000): £3,000
- Annual increase in costs: £808
Business Asset Disposal Relief
For entrepreneurs planning to sell their businesses, the Business Asset Disposal Relief (formerly known as Entrepreneurs’ Relief) will be retained but with gradual rate increases. The tax rate will rise from 10% to 14% in April 2025 and then to 18% in April 2026, though the £1 million lifetime limit remains unchanged.
Autumn Budget 2024: Key Changes for the Self-Employed
While the rise in Corporation Tax to 25% and freeze on personal tax allowance until 2028 will affect some self-employed professionals, significant updates around National Insurance, Capital Gains Tax, and Making Tax Digital (MTD) will impact those earning from diverse sources or planning to grow their businesses. Self-employed individuals may also see a Capital Gains Tax hike from 10% to 18% at the lower rate and the expansion of Making Tax Digital (MTD) for ITSA will mean that by 2027, freelancers with an income of over £20,000 may be required to maintain digital tax records. While fuel duty and certain pension reliefs are unaffected, these changes reflect the government’s approach to tax equity and compliance, affecting financial planning for many self-employed individuals.
Additional Support Measures
Business Rates Relief Small businesses in England will benefit from a freeze on the small business multiplier for 2025/26, cancelling the scheduled inflation-linked increase. Small firms in retail, hospitality, and leisure sectors will receive an additional year of business rates relief.
Infrastructure Investment The Chancellor has pledged over £5 billion in government investment in housebuilding, with specific support promised for small housebuilders. An additional £500 million has been allocated for pothole repairs in England.
The Federation of Small Business (FSB) on the budget
The FSB welcomed the Chancellor’s decision to increase the employment allowance for small businesses from £5,000 to £10,500, calling it a “very welcome move” that will “shield the smallest employers from the jobs tax.” FSB Policy Chair Tina McKenzie said this represents “a pro-jobs prioritisation in a tough Budget.” However, the FSB warned that larger small and medium-sized businesses “will struggle with the rises on employer national insurance on top of the high costs from the Government’s employment law plans.” It cautioned about the potential impact on jobs, wages and prices.
Looking Ahead
The autumn budget signals a clear shift in business policy, with support targeting small businesses rather than large corporations. However, the combined impact of increased employment costs, higher wages, and various tax changes will require careful planning and potentially tough decisions for many small business owners.
Small businesses should:
- Review staffing costs in light of the new NICs and minimum wage requirements.
- Consider whether they can benefit from the increased Employment Allowance.
- Plan for the implementation of these changes before April 2025.
- Assess their business rates position and available reliefs.
- Consider the timing of any planned business sale in light of the changing tax landscape.
While the increased Employment Allowance offers welcome relief for many small businesses, the overall package of measures presents a mixed picture, with rising costs that must be carefully managed over the coming years.
AcuAccounts is committed to helping clients navigate the complexities of tax legislation, pensions, accounting, and more.
Questions about how the autumn budget could impact your small business or self-employment? Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027.
Visit our contact page at AcuAccounts Contact for more information.
by Acuaccounts | Jul 24, 2024 | accounting, kings speech, latest news, self assessment, tax, tax return
The recent King’s Speech, delivered by King Charles III on 17 July 2024, outlined the new Labour government’s legislative agenda for the coming year. While the speech covered a wide range of topics, several proposals have implications for small businesses and the self-employed.
Let’s delve into the details of these key areas:
National Wealth Fund Bill
The government plans to inject £7.3 billion of capital into the National Wealth Fund.
This initiative aims to:
- Deploy funding through the UK Infrastructure Bank
- Expand the bank’s remit to catalyse private investment
- Generate £3 of private sector investment for every £1 it invests
For more information click here.
Budget Responsibility Bill
This bill introduces a ‘fiscal lock’, requiring any government making significant and permanent tax and spending changes to undergo an independent assessment by the Office for Budget Responsibility (OBR).
For small businesses, this could mean:
- More predictable economic policies, aiding in long-term planning
- Increased market credibility and public trust in fiscal decisions
- Potentially slower implementation of major tax changes, allowing more time for businesses to adapt
For more information click here.
Pension Schemes Bill
This bill proposes several changes to pension schemes, including:
- Consolidation of small, deferred pension pots
- Ensuring value for money in pension schemes
- Requiring schemes to offer retirement products
Small business owners should be aware of these changes, both for their own retirement planning and for managing employee pension schemes.
For more information read the article or speak to our team.
Draft Audit Reform and Corporate Governance Bill
While primarily aimed at larger companies, this bill could have trickle-down effects on small businesses, especially those aspiring to grow.
Key points include:
- Replacing the Financial Reporting Council with a new regulator
- Extending Public Interest Entity status to large private companies
- Removing unnecessary rules for smaller Public Interest Entities
- New powers to investigate and sanction company directors for serious financial reporting failures
More information here.
Planning and Infrastructure Bill
This bill aims to streamline the planning process for building homes and delivering major infrastructure projects.
For small businesses in construction and related industries, this could mean:
- More opportunities for contracts and projects
- Potentially faster approval processes for development plans
- Alignment with industrial, energy, and transport strategies
Great British Energy Bill
The creation of a new, publicly-owned energy production company could impact small businesses through:
- Potential changes in energy pricing and availability
- New opportunities for businesses in the clean energy sector
- Possible partnerships between the public entity and private sector companies
Employment Rights and Skills
While not detailed in the additional information, the speech mentioned plans to reform employment rights and skills training.
This could include:
- Changes to flexible working arrangements
- Reforms to zero-hour contracts and fire-and-rehire practices
- Transformation of the Apprenticeship Levy into a Growth and Skills Levy
Small business owners should prepare for potential increases in employment costs and new obligations but also look for opportunities in workforce development.
EU Relationship Reset
The government’s intention to reset relationships with EU partners could have significant implications for small businesses engaged in international trade, potentially easing some of the post-Brexit challenges.
What’s Missing?
Despite these proposals, some key small business concerns were not directly addressed. The Federation of Small Businesses (FSB) noted that the government’s 105-page briefing document doesn’t mention ‘small business’ once.
Notably absent were:
- Specific legislation to tackle late payments which is a significant issue for many small businesses
- Clear commitments to reduce the tax burden on small businesses
- Measures to help small employers adapt to the new employment rights package
Read the full FSB reaction here.
Looking Ahead
While the King’s Speech provides a roadmap for the government’s intentions, many details are yet to be clarified. Small business owners should keep an eye on the autumn budget for more concrete measures and potential addressing of concerns raised by small business representatives.
In the meantime, it’s advisable to start considering how these proposed changes might affect your operations. Speak to us at AcuAccounts to help you prepare for the evolving business landscape and identify challenges and opportunities in the coming year.
Remaining Tax Deadlines for 2024:
Here are the key remaining tax deadlines for 2024, starting from July:
July 2024:
- 22 July 2024: Deadline for paying Class 1A National Insurance Contributions (applicable to employee benefits like private medical insurance)
- 31 July 2024: Second Income Tax and National Insurance payment on account deadline
October 2024:
- 5 October 2024: Deadline to register with HMRC if you became self-employed or started receiving income from property in the 2023/24 tax year
- 31 October 2024: Deadline for paper Self Assessment returns for the 2023/24 tax year
December 2024:
- 30 December 2024: Deadline for online submission of Self Assessment tax returns for HMRC to collect tax through PAYE tax codes (if less than £3,000 is owed)
- 31 December 2024: Deadline for filing your company’s annual accounts if you have a limited company with an accounting year end of 31 March
January 2025:
- 31 January 2025: Deadline for online Self Assessment tax returns for the 2023/24 tax year and for paying the tax bill for the 2023/24 tax year
VAT Return Deadlines: For VAT-registered businesses, returns are typically filed quarterly. The deadlines are one month and seven days after the end of each quarter.
For example:
- 7 August 2024 for the quarter ending 30 June 2024
- 7 November 2024 for the quarter ending 30 September 2024
- 7 February 2025 for the quarter ending 31 December 2024
AcuAccounts is committed to helping clients navigate the complexities of tax legislation, pensions, accounting, and more. We are here to assist you in understanding and implementing the changes outlined in the King’s Speech, as well as ensuring you meet all upcoming tax deadlines.
Want to find out more? Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027. Visit https://www.acuaccounts.com/contact/ for all contact information.
by Acuaccounts | Nov 29, 2023 | accounting, latest news, r&d credits, tax
The Chancellor’s Autumn Financial Statement, released on November 24 November 2023, contained several policies aimed at small companies and the self-employed in the UK. As your trusted small business accountants and financial advisors, we set out below an in-depth analysis of the key measures relevant to your accounting and business.
Increase in National Minimum Wage
Nearly three million workers in the UK will benefit from the upcoming increase in the national living wage that was announced by the Chancellor and is detailed in the table below. Strategic planning is crucial if you employ staff at or slightly above the National Minimum Wage.
A notable change is that 21 to 22-year-olds will no longer have a separate lower minimum wage band; instead, they will be entitled to the full National Minimum Wage rate for those aged 23 and over of £11.44 per hour from the specified date. It’s worth mentioning that the London Living Wage, although not legally binding, stands at £13.15 per hour, reflecting the best available evidence on living standards in the UK, specifically in London.
|
Apprentice |
Under 18 |
18 to 20 |
21 to 22 |
23 and over |
| Apr 2022 – March 2023 |
4.81 £ |
4.81 £ |
6.83 £ |
9.18 £ |
9.50 £ |
| Apr 2023 – March 2024 |
5.28 £ |
5.28 £ |
7.49 £ |
10.18 £ |
10.42 £ |
| Apr 2024 – March 2025 |
6.40 £ |
6.40 £ |
8.60 £ |
11.44 £ |
11.44 £ |
Tax Relief for Reinvesting in Your Business
One of the most welcome announcements was that full expensing of expenditures on equipment, machinery and technology will become a permanent tax break from 2026 rather than a temporary policy. Sole traders and small companies can continue deducting 100% of qualifying capital investments from taxable profits. Even if your business is currently making use of the £1 million Annual Investment Allowance, full expensing from 2026 gives longer-term assurance that reinvesting in productivity gains will lower your tax obligations.
Updates to R&D Tax Credits
The research and development tax credit schemes have been made more generous for smaller companies from April 2024. Most importantly, the minimum threshold of expenditure for the “R&D intensive” relief has been reduced from 40% to 30% of total spending. The enhanced 230% deduction rate will now be achievable for more SMEs investing in pioneering new products, services and processes. Speak to our R&D team to check if your innovation spending qualifies and apply for this valuable relief against tax bills.
Reduced National Insurance Contributions
National Insurance Contributions for employees and the self-employed will be reduced in 2024, which is welcome news for small businesses and sole traders.
- Class 1 Employee NICs: Reduced from 12% to 10% starting January 6, 2024
- Class 4 Self-Employed NICs: Decreased from 9% to 8% effective April 6, 2024
- Class 2 Self-Employed NICs: Reduced to zero and abolished on April 6, 2024
Late Payments Measures
£32.1 billion of unpaid invoices are currently owed to UK businesses, according to research from Simply Business, and 30 per cent of businesses are owed as much as £45,000 at one time. To address this issue, new rules will target larger companies failing to meet timely payment obligations to small business suppliers. Starting in April 2024 companies with a turnover exceeding £5 million will be disqualified from bidding on public sector contracts if they consistently pay invoices after 55 days on average. This limit will progressively tighten to 45 days and then 30 days to align with the Prompt Payment Code standards.
Training Costs Deductibility:
HMRC has agreed to update its guidance on tax deductibility of skills training costs for the self-employed which should give sole traders and independent contractors clearer confirmation of their ability to offset expenses like course fees, software learning packages, or professional seminars.
Continued Support on Business Rates:
Business rates have yet to be reformed. However, in the meantime the business rates small business multiplier in England will be frozen, eliminating the planned CPI inflation increase. Additionally, the 75% discount for retail, leisure, and hospitality SMEs in England has been extended by another year until March 2025.
Easier Access to Cash Basis Accounting:
Starting in April 2024, the £150,000 turnover eligibility threshold for cash-based accounting will be eliminated. Sole traders and partnerships can calculate taxable profits based on cash inflows and outflows instead of invoice dates, providing a smoother income experience and simplifying tax filings. For personalized advice on transitioning to cash-based accounting, contact AcuAccounts.
The Federation of Small Business (FSB) on the Autumn Statement:
Overall, the FSB welcomed the Autumn Statement, which included several policies the FSB had campaigned for on business rates, late payments, and taxes for the self-employed. The FSB praised as a positive step the new public procurement rules to incentivise big companies to pay suppliers promptly.
The Institute of Directors (IoD) on the Autumn Statement:
The IoD welcomed the government’s efforts to boost business investment, including making full expensing of capital expenditures permanent, tax cuts for the self-employed, and establishing investment zones. However, the IoD criticised the lack of action on tackling skills shortages.
Want to find out how the budget will impact your business finances?
Get in touch at info@acuaccounts.com and book a consultation with our team. You can also call us directly on 0203 907 9027.
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