Directors to face identity checks under Companies House reforms
Directors to face identity checks under Companies House reforms Companies House has published further guidance on the introduction of mandatory identity verification for company directors and other individuals involved in company filings. The change forms part of the reforms introduced by the Economic Crime and Corporate Transparency Act 2023. What do you need to know? Get the Help You Need with Accounts Filing Under the new regime, company directors, people with significant control and individuals who file documents at Companies House will be required to verify their identity. The aim is to improve the accuracy of the Companies House register and prevent misuse of company structures for fraud and other economic crime. Identity verification will be possible in two ways. You will be able to complete the process directly through Companies House using its digital verification system, or you can verify your identity through an authorised corporate service provider, such as an accountant or company formation agent. The verification requirement will be introduced in stages. Once the system is fully implemented, new directors will need to complete identity verification before their appointment can be registered. Existing directors will be given a transition period to comply with the new rules. For business owners, the practical impact is that company filings will increasingly be tied to verified identities. Directors who fail to complete the process may find they are unable to make filings or act for the company through the Companies House system. You should therefore monitor Companies House guidance and announcements and ensure directors are prepared for the new verification requirements. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
Are buy-to-let companies worth the hype ?
Are buy-to-let companies worth the hype ? There’s no doubt that landlords have been on the receiving end of multiple tax hikes in recent years. So called “property experts” will tell you that the best tax-saving strategy is to operate through a company. Are they right? Get more Company Accounting Services Trending According to the press the number of landlords setting up buy-to-let companies has hit a ten-year high. Over 66,000 companies were set up in 2025, thought to be in response to increasing mortgage rates and frozen tax thresholds. What Companies House statistics can’t tell you is whether all those landlords will save tax, and if so, why. Tax on profits If you look solely at the rate of tax applied to profits, corporation tax is usually cheaper. However, that isn’t the full picture. Once you draw the income from the company, you’ll be hit with personal tax and so any advantage is more than wiped out. You’ll actually be worse off. Basic rate and non-taxpayers will be better off owning the properties personally. If you need to spend the rental income, company ownership probably isn’t for you as, overall, more tax will be payable. Mortgage maths A key difference between corporate and personal ownership is the tax treatment of mortgage interest. It’s fully tax deductible for a company but individuals are only allowed a tax credit, equal to the basic rate of tax (currently 20%). Example. A property business generates profits of £50,000, before taking into account mortgage interest of £9,000 in 2025/26. A company would pay £7,790 in corporation tax ((50,000-9,000) x 19%), leaving £33,210 to be extracted. Assuming the shareholder extracts this as a dividend, and is a higher rate taxpayer, they will be left with £22,002 after tax (£33,210 – 33.75%). Whereas an individual would pay £18,200 income tax ((£50,000 x 40%) + (£9,000 x 20%)), leaving net income of £31,800. This represents a saving of £9,798, despite the mortgage interest restriction. Before deciding whether to set up a company we would recommend running calculations based on your individual circumstances. When is it better to use a company? A company can be more tax efficient if you don’t need to extract the income and instead use it as a piggy bank. Example. Andy and Agnes are higher rate taxpayers. They set up a company which purchases buy-to-lets. Net profits are around £20,000 per year and as such the company pays corporation tax of £3,800. Whereas if this was personal income they would pay £8,000 in income tax. If they retire in ten years, the company would have an additional £42,000 ((£8,000-£3,800) x 10) on top of the retained profits. Tax relief for any mortgage interest increases the savings further. When they retire they are no longer higher rate taxpayers and can take dividends as required and pay just 10.75% (2026/27 rates) tax. Double tax on growth Longer term plans for the properties also need to be considered. If you plan to sell them once they’ve appreciated in value, you’ll pay capital gains tax rates (18/24%) on the difference, whereas a company will pay corporation tax rates (19-25%). Again, the problem is the additional personal tax you’ll incur when you take money out of the company. If, instead of selling up, you plan to pass them on to the next generation, using a company can better facilitate this. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
The Spring Statement 2026
The Spring Statement 2026 The Chancellor held the Spring Statement on 3 March 2026. The government has been keen to have only one tax event per year (the Budget) and so the Spring Statement was intended to provide an interim update on the economy and public finances. Page Content:- The Spring Statement 2026 Personal Tax Employment Capital Taxes Business The Spring Statement 2026 Whilst the Chancellor did meet the commitment not to make major tax announcements, there was plenty to say on the economy more generally. Looking back a year, the previous Statement focused on a commitment to increasing defence spending, cuts to the welfare state and economic growth. Over the last year, the majority of those cuts to welfare spending were not supported by backbench MPs and the economy has continued to grow slowly, so what did the Chancellor have to say a year on? The strap line was that current policies mean that the government has the right economic plan for Britain. The Chancellor stated that the ‘…Spring Forecast has shown that the government’s economic plan to cut the cost of living, cut national debt and grow the economy, is the right one.’ Whilst the speech was highly political, the Chancellor specifically referred to three particular areas to show that the government’s policies were working: Cutting the cost of living – the OBR’s forecast shows inflation, borrowing and debt interest are falling, whilst investment is rising. Cutting borrowing – the OBR’s forecast shows borrowing is down by nearly £18 billion compared to the autumn, with borrowing this year set to be the lowest in six years and falling below the G7 average. Growing the economy – the OBR’s forecast shows GDP per person is now set to grow more than was expected in the Budget, with growth of 5.6% over the parliament. That was what the government said but what did the OBR have to say in its 125-page report? The start of the report stated that the fiscal context for the next Budget will remain challenging, so does this mean even more tax rises? It certainly does not appear that tax cuts are on the way anytime soon. Highlights of the report were summarised by the OBR: productivity growth will pick up to 1% in the medium term labour supply growth will decline, mainly due to lower net migration and population ageing GDP growth will slow down to 1.1% in 2026, before averaging 1.6% over the rest of the five-year forecast inflation will reach its 2% target in late 2026 public sector net borrowing is projected to fall from 5.2 % of GDP in 2024/25 to 4.3% of GDP this year and then to 1.6% in 2030/31 weekly wage growth will slow to around 3.5% in 2026 and then average 2.25% unemployment will rise from 4.75% in 2025 to a peak of 5.33% in 2026, primarily driven by new entrants into the labour market struggling to find work. Of course, the Spring Forecast is exactly that; for example, the effects of the current situation in the Middle East have not been factored into any of the data released by the OBR. The OBR also makes some other important points: the tax-to-GDP ratio is forecast to increase to a post-war high of 38% of GDP in 2030/31 there continue to be pressures on the government’s departmental spending plans there are concerns that the future costs of welfare spending may follow the sharp growth of disability and health caseloads since the pandemic. To summarise, not a great deal of growth appears to be around the corner. Public spending is one side of the equation but taxation is the other, so what does the tax system have to offer over the next year? back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Personal Tax Tax bands and rates The basic rate band remains at £37,700, with the higher rate threshold remaining at £50,270. The additional rate threshold remains at £125,140. The freeze of these thresholds will continue until April 2031. The NICs Primary Threshold and Lower Profits Limit remain at £12,570. The NICs Upper Earnings Limit and Upper Profits Limit will remain aligned to the higher rate threshold at £50,270 up to April 2031. Other employer NICs relief thresholds aligned to the Upper Earnings Limit will also be maintained at this level. The additional rate for non-savings and non-dividend income will apply to taxpayers in England, Wales and Northern Ireland. The additional rate for savings and dividend income will apply to the whole of the UK. Scottish residents The tax on income (other than savings and dividend income) is different for taxpayers who are resident in Scotland from that paid by taxpayers resident elsewhere in the UK. The Scottish Income Tax rates and bands apply to income such as employment income, self-employed trade profits and property income. The rates and bands for 2026/27 are as follows: Band £ Rate % 0 – 3,967 19 3,968 – 16,956 20 16,957 – 31,092 21 31,093 – 62,430 42 62,431 – 125,140 45 Over 125,140 48 Scottish taxpayers are entitled to the same personal allowance as individuals in the rest of the UK. Welsh residents Since April 2019 the Welsh Government has had the right to vary the rates of Income Tax payable by Welsh taxpayers (other than tax on savings and dividend income). For 2026/27 the tax payable by Welsh taxpayers is the same as that payable by English and Northern Irish taxpayers. The personal allowance The Income Tax personal allowance is fixed at the current level of £12,570 and will remain frozen until April 2031. There is a reduction in the personal allowance for those with ‘adjusted net income’ over £100,000. The reduction is £1 for every £2 of income above £100,000. This means that there is no personal allowance where adjusted net income exceeds £125,140. The government will increase the married couple’s allowance and blind
Who can’t yet sign up for MTD IT?
Who can’t yet sign up for MTD IT? Making Tax Digital for Income Tax (MTD IT) becomes mandatory from April 2026 for sole traders and landlords with qualifying income over £50,000. However, HMRC’s current guidance makes clear that not everyone can sign up yet. If you are preparing early, are you actually eligible? Get more help with your Tax issues. According to HMRC’s sign-up guidance, certain taxpayers are currently excluded from joining MTD IT. These include individuals who: are members of a partnership are subject to bankruptcy or an individual voluntary arrangement have certain complex tax affairs that the system does not yet support do not meet the digital and identity verification requirements. In addition, some taxpayers with particular reporting needs may find that the service cannot yet accommodate their circumstances. HMRC has indicated that functionality is being expanded in stages. If you attempt to sign up and are not eligible, your application will be rejected and you will remain within self-assessment. This does not remove the obligation to join when mandation applies and your circumstances fall within scope. As 6 April 2026 approaches, you should review both your income level and your eligibility under HMRC’s current criteria before attempting to enrol. Checking the guidance in advance can prevent delays and confusion during the transition to digital reporting. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
HMRC reminds employers about payrolling benefits deadlines
HMRC reminds employers about payrolling benefits deadlines HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know? Find more help with Payroll here! The February 2026 edition of HMRC’s Employer Bulletin highlights important dates and guidance for employers preparing to report BiKs through payroll software rather than via P11Ds. The update forms part of the wider move towards payrolling most BiKs in real time under the new system. The deadline to register for voluntary payrolling of BiKs for the 2026/27 tax year is 5 April 2026. Employers that intend to payroll benefits in the next tax year must complete registration before 6 April 2026, as the voluntary registration service closes once the tax year begins. The Bulletin also reiterates that payrolling most benefits in kind will become mandatory from April 2027. From that point, employers will be required to tax benefits through payroll software and real time information submissions rather than relying on end-of-year P11D reporting. For employers and payroll professionals, the practical points are straightforward: register for voluntary payrolling before 5 April 2026 if you intend to payroll BiKs in 2026/27 ensure payroll software can handle real-time benefit reporting review and plan to change internal processes if you currently rely on P11D reporting With the move to mandatory payrolling now less than 14 months away, employers that delay preparation risk operational pressure during the 2026/27 tax year. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
MONTHLY FOCUS: AUTO-ENROLMENT – EMPLOYERS’ RESPONSIBILITIES
MONTHLY FOCUS: AUTO-ENROLMENT – EMPLOYERS’ RESPONSIBILITIES What are an employer’s responsibilities with regard to pension schemes and their employees? Page content:- Basic Principles Overview Choosing A Pension Scheme Assessing Workers Emplyees: Rights to Join, Op In and Opt Out Exceptions Postponement or Waiting Periods Basic principles What is auto-enrolment and who is it for? Simply put, auto-enrolment is the process that employers must follow to give their employees the opportunity to become a member of a workplace pension scheme. Where membership is required by auto-enrolment both the employer and their employees must pay contributions at least to a minimum level. However, it is possible for employees to opt out of joining the workplace pension, in which case neither they nor their employer will be required to make contributions. The auto-enrolment process is compulsory for all employers whether they are in business or not. It therefore applies to charities and other non-profit organisations and even to those who employ domestic staff such as a nanny, cleaner or gardener. Following a staggered rollout, all employers are now required to meet auto-enrolment obligations from the day they first take on an eligible employee. Who has responsibility for auto-enrolment? The employer always has the responsibilities under auto-enrolment – they will at the very least have to assess the status of persons who work for them to establish if they are “workers” for the purposes of auto-enrolment and whether they need to take further steps. The employer’s role may be twofold: that of the employer and that of pension scheme administrator. However, they may, and often will, defer the latter role to a pension company or financial advisor. Below is a brief description of who is responsible for various aspects of auto-enrolment. 1. Employers Employers have an obligation to provide a suitable pension scheme and contribute to it for all eligible employees unless they have opted out. They must also manage or arrange for someone else to manage the scheme on a day-to-day basis. 2. The Pensions Regulator (TPR) TPR has the role of overseeing schemes and ensuring that employers meet their obligations in running their pension schemes. 3. The Financial Conduct Authority (FCA) The FCA’s role is to regulate most pension schemes offered by employers. The FCA regulates the marketing and sale of most pension schemes and retains regulatory control of the joining process outside of auto-enrolment. Employers receive communications regarding auto-enrolment from TPR and may receive communication from the FCA regarding the pension scheme they choose or operate. Can the employer use any employer pension scheme for auto-enrolment? No, while most pension schemes for employers meet the auto-enrolment requirements, not all do. For example, if the only workers for the business are directors the company might not be required to have an auto-enrolment scheme and so an existing pension scheme for directors only might not meet the auto-enrolment requirements. If the business later takes on other employees and wants to use an existing pension scheme it must first: ascertain whether it can operate as an auto-enrolment qualifying pension scheme (QPS). The pension company, pension administrator or a financial advisor will be able to help with this; and assess whether the existing scheme is suitable for auto-enrolment. For example, while it might be a QPS, its rules might require the employer to pay contributions greater than are required by auto-enrolment/ Employers must be prepared to establish a new pension scheme if the existing one isn’t suitable. What’s my first step in choosing a pension scheme? An employer must have at least one QPS, which is ready to enrol employees as soon as they have an employee who is eligible for auto-enrolment. They must find a pension provider by themself or with the aid of a pension advisor. All major insurance companies offer schemes which comply with auto-enrolment. The government-backed National Employment Savings Trust (NEST) pension scheme is a good DIY option and has grown in popularity, especially with small employers. However, it’s worth speaking to a financial advisor specialising in auto-enrolment pensions before making a decision about which scheme to use. What are the basic auto-enrolment duties as an employer? · to assess the status of employees for auto-enrolment purposes, i.e. are they eligible to join or not? · to make qualifying employees members of a pension scheme · to pay contributions for and on behalf of employees · to deal with all employee auto-enrolment rights, such as their right to opt out or opt in to the QPS; and · to make all reports to TPR as required by legislation. What is the cost of getting things wrong? Having a suitable pension scheme will keep an employer out of trouble with TPR. In the first few years of auto-enrolment TPR took a relatively soft approach to employers who didn’t meet their auto-enrolment obligation on time, but this is changing and it’s issuing penalties more frequently. When do penalties apply and how much can they be? TPR uses information from government agencies such as HMRC to find employers not already on its database. If employers fail to start the auto-enrolment process on time, or subsequently meet their duties, it can fine them. Before it does it will send warning notices which indicate what steps the employer needs to take to avoid a financial penalty. The final warning gives the employer 28 days in which to act. If they don’t respond a fine is likely. The rate of the fixed fine for initial non-compliance is £400. Thereafter it can escalate to daily penalties depending on the number of employees there are. The minimum is £50 per day if there are up to four workers, and increases to £10,000 per day if there are 500 or more. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Overview
HMRC bungles 2026/27 PAYE codes for pensioners
HMRC bungles 2026/27 PAYE codes for pensioners For some pensioners, the 2025/26 winter fuel payment should be collected via their 2026/27 PAYE code. HMRC has started to issue PAYE codes for the new tax year, but the extra charge is missing. What’s going on? For the personal tax services you are looking for. The winter fuel payment was paid to state pensioners automatically at the end of 2025, unless they opted out in time. The full payment is clawed back if an individual’s income exceeds £35,000 gross per annum, and for those that aren’t completing tax returns, it’s supposed to be collected through their PAYE code. This means the winter fuel payment received in 2025/26 will be collected via the 2026/27 PAYE code. The adjustment will deduct around £17 per month to claw back the payment over the course of the tax year. Some PAYE tax codes have already been issued for 2026/27, but HMRC has confirmed these may not include the charge. No action is required because an updated PAYE code will be issued in April 2026 to rectify this. It is possible to opt out of the winter fuel payment, but this will need to be done each year. From April 2026 it should be possible to opt out using an online form. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
Government unveils business rates cuts and late licensing boost for pubs
Government unveils business rates cuts and late licensing boost for pubs Pubs will see their business rates cut and licensing rules relaxed under a new support package aimed at reviving high streets and protecting local community hubs. What’s changing and what does it mean for the trade? The Chancellor has announced a package that she expects to save the average pub an extra £1,650 in 2026/27, with around three‑quarters of pubs seeing their business rates bills fall or stay flat next year. The measures include a 15% cut to new business rates bills from April, followed by a two‑year real‑terms freeze, alongside a review of how pubs are valued for rates. However, this discount applies to the rates as calculated under the rerated value from 1 April 2026, so businesses whose values will increase significantly will still see increased bills. Take a closer look at Our Accounting Services The government will also pilot a new High Street Strategy to support retail, leisure and hospitality businesses, and consult on loosening planning rules so pubs can add guest rooms or expand trading space more easily. A £10 million Hospitality Support Fund over three years will help more than 1,000 pubs offer extra community services, such as cafes, village stores and play areas, and support people furthest from the labour market into hospitality jobs. Licensing rules will be temporarily relaxed so pubs and other venues can open after midnight for Home Nations’ matches in the later stages of this summer’s Men’s FIFA World Cup, with a consultation to follow on similar extensions for major events such as Eurovision. The government also plans to legislate to increase the number of temporary events pubs can hold to screen matches or host community and cultural events. The package builds on a wider £4.3 billion support programme for business rates, including a cap on bill increases from April and a permanent 5p cut in the business rates multiplier for over 750,000 retail, hospitality and leisure properties, funded by a higher rate for the top 1% of properties. Grassroots live music venues that operate as pubs will also be included in the new reliefs, though business rates remain a devolved matter and it will be for the Scottish, Welsh and Northern Irish administrations to decide whether to match the support. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
HMRC updates guidance for claiming new allowance
HMRC updates guidance for claiming new allowance Qualifying expenditure on plant and machinery can qualify for a 40% first-year allowance from 1 January 2026. HMRC has now updated its guidance to help make claims. What do you need to do? The new 40% first-year allowance (FYA) is available to companies as well as unincorporated businesses. Perhaps the biggest winners will be companies that purchase assets and lease them out, as these assets are excluded from full expensing, and so 100% relief is limited to the £1 million annual investment allowance. Until this year, the only option for relieving any excess was through writing down allowances on a reducing balance basis. Find more Guidance on our Accounting Services tax return, but HMRC’s corporation tax online service will not be updated for the new allowance until 2027. A company that wants to make a claim in the meantime, e.g. one with a year end of 31 March 2026 filing this year, will need to use a workaround. HMRC has now updated its guidance, saying that claimants should use: boxes 725 or 750 for claim amounts box 760 for qualifying expenditure back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk
Get ready for Making Tax Digital for Income Tax
Get ready for Making Tax Digital for Income Tax If you’re one of the (un)lucky individuals who need to join Making Tax Digital for Income Tax (MTD IT) from 6 April 2026, you probably know that this involves submitting regular, digital records to HMRC. But what do you need to do to prepare? What’s required? Making Tax Digital for Income Tax (MTD IT) will affect how you keep records as well as how often you report to HMRC, so you need to take practical steps now to prevent problems cropping up later. In a nutshell, you’ll be required to: sign up for the service before April 2026 keep digital records of self-employment or property income and expenses send quarterly updates to HMRC summarising income and expenses; and submit your end-of-period statement and final declaration using software that works with HMRC’s system. Making Tax Digital, Find the help you need! see our Accounting Services. Start by signing up HMRC may have written to you to tell you that you need to join MTD IT but unfortunately it won’t sign you up automatically. Signing up is therefore your first practical action and needs to be done before MTD IT starts in April 2026 (see further information). If you already use an accountant, they can do it for you. Your accountant will need a fresh authorisation to access your MTD IT account. Existing authorisation for self-assessment access won’t transfer automatically. Record keeping MTD IT requires digital records to be kept in compatible software. This means income and expenses should be recorded regularly, not reconstructed at the year end. So now is the time to review your current record keeping system. Tip. Update records in real time as leaving it until the end of the quarter increases the risk of missing income or expenses. Choose the right software for you You will need HMRC-compatible software to submit quarterly updates. There is no single “best” option, and the right choice depends on how complex your affairs are. There are two main types of software, one that creates records for you by connecting to your bank account, or having invoices uploaded to it, and one that connects to your own records, e.g. a spreadsheet or accounting software. When choosing software, consider how easy it is to use, bank feed integration, support and long-term costs. Tip. There’s an HMRC tool to help you find software (see Further information ). New routine MTD IT is as much about process as technology. Setting aside time each month to review transactions will make quarterly submissions far easier. If you currently rely on paper records or spreadsheets that you update once a year, you’ll need to change your habits. MTD IT changes reporting, not when tax is paid. Payments on account still apply unless rules change in the future. Which quarters? Under MTD IT, the default position is that the quarters will follow the tax year, i.e. 6 April, 6 July, 6 October and 6 January. If you’d prefer to use calendar quarters you can elect to do so when you sign up to MTD IT. back to the menu top If you would like any assistance with any of these points. Please Call Us on 0161 872 8671 Get in Touch Want a financial consultation with no obligation? Call Dunhams Chartered Accountants now on 0161 872 8671 Or email paul.o’brien@dunhams.co.uk or andrew.edwards@dunhams.co.uk