Author: Glenn

Artificial intelligence (AI) is no longer something for big tech firms alone – it is becoming a practical tool for small businesses, especially when it comes to financial management and forecasting.

We can now harness AI tools to speed up data capture, analyse financial trends, and identify opportunities for growth or savings. This is not about replacing people with machines but about making better use of real-time insights to support your decisions.

Here are just a few ways AI is being used to improve the services we offer:

• Automated bookkeeping: AI can process bank feeds, receipts, and invoices more quickly and with fewer errors.
• Cash flow forecasting: Smart systems can identify seasonal trends or highlight risks before they affect your business.
• Performance dashboards: AI-powered platforms can create dynamic reports, giving you a visual summary of profits, margins, and costs.
• Client support: AI tools can help answer common queries faster and track action points across your business operations.

As accountants, we are increasingly integrating these technologies into our advisory work, giving clients deeper insights and more proactive support. The value we offer lies not just in compliance, but in helping you understand the bigger picture.

If you are wondering how AI might benefit your business, or how we are using these tools to improve the service you receive, please do get in touch. We are here to help you get the best from both technology and human expertise.

From 2025, Companies House is rolling out new identity verification requirements for directors, people with significant control (PSCs), and anyone forming or managing a UK company. These changes form part of the Economic Crime and Corporate Transparency Act and are designed to reduce fraud and increase confidence in UK companies.

If you are involved in running a business, you may soon need to prove your identity either directly through Companies House or via a registered agent such as your accountant. Without completing verification, you will not be allowed to register a company or take up a new role as a director or PSC.

These rules apply to:

• Company directors (existing and new)
• Individuals with significant control (usually shareholders with 25% or more of shares or voting rights)
• Company formation agents
• Anyone filing information at Companies House on behalf of a business

The new system is already partially in place. Since April 2025, authorised agents can verify identities on behalf of their clients, but from a future date still to be announced, Companies House will require all key company officers to comply before filings will be accepted.

For business owners, this means a few practical actions:

• Ensure all directors and PSCs have current and valid photo ID.
• Decide whether you want to complete ID checks directly or use an authorised agent.
• Check that your company’s records at Companies House are up to date.

We expect enforcement and deadlines to follow later in the year, so it is wise to prepare in advance. If you are uncertain how these changes affect you, or how best to carry out the verification, we are happy to help.

From April 2024, the cash basis is the default method for sole traders and most partnerships when preparing Self-Assessment returns. Designed to simplify tax reporting, the cash basis lets businesses record income and expenses when money actually moves, easing the admin burden for many. Those who prefer or need traditional accruals accounting must actively opt out when submitting their tax return.

Businesses that prefer traditional accruals accounting or who are ineligible for the cash basis, must opt out of the cash basis when submitting their self-assessment return.

A number of other changes to the cash basis took effect from April 2024. This included the following:

• The removal of the turnover thresholds for businesses to use the cash basis.
• The removal of the restrictions on using relief for losses made in the cash basis, aligning the rules with accruals.
• Interest restrictions have been removed so both cash basis and accruals accounting are subject to the same tax rules.
• People with more than one business are able to choose whether they use the cash basis or accruals accounting for each business they have, rather than having to pick one method for all their businesses.

The cash basis is not available to limited companies and limited liability partnerships.

Struggling with late-paying customers? The VAT Cash Accounting Scheme helps protect cash flow by taxing only what you have received.

The VAT Cash Accounting Scheme is designed to support businesses by improving cash flow. Using this scheme means that VAT is only paid when your customer pays you and not when you issue an invoice. This means that if a customer fails to pay, the VAT is not payable to HMRC, offering a clear advantage for businesses that sell on credit.

In contrast, under standard VAT accounting, VAT is due whether or not you've been paid, which can create financial pressure if your customer is late in paying or does not pay.

To join the scheme, a business must have a VAT taxable turnover of £1.35 million or less in the next 12 months. Once in the scheme, a business can continue using it until their turnover exceeds £1.6 million.

You cannot use the Cash Accounting Scheme if:

• You are behind on VAT returns or payments.
• You have committed a VAT offence in the last 12 months.
• You are using the Flat Rate Scheme, which has its own method for handling VAT on a cash basis.

There’s no formal application required. You can start using the scheme:

• At the beginning of any VAT accounting period, or
• From the start of VAT registration, if you’re newly registered.

You can leave the scheme voluntarily at the end of any VAT period without notifying HMRC and rejoin again if you continue to meet the eligibility criteria.

Get a clear view of your future pension. Use the enhanced online service to check, boost, or track your State Pension entitlement.

The enhanced Check Your State Pension forecast service is available online, offering a faster and more complete way to understand your State Pension entitlement. This joint service from HMRC and the Department for Work and Pensions (DWP) lets most people under State Pension age see:

• How much State Pension they could get.
• When they can get it.
• If and how they can increase their State Pension, for example, by paying voluntary National Insurance contributions to fill contribution gaps.

The forecast service also highlights any shortfalls in your National Insurance Contributions (NICs) record, allowing you to take action now to boost your future pension income.

You can access the service via www.gov.uk/check-state-pension, where you’ll need to sign in securely using your Government Gateway credentials. If you don’t have them yet, you can create an account. You may need photo ID i.e., a passport or driving licence in order to verify your identity.

You can also view your pension forecast through the HMRC app, giving you secure, on-the-go access.

If you're already receiving or have deferred your State Pension, you’ll need to contact The Pension Service (UK) or the International Pension Centre (abroad) instead.

It is recommended that you regularly check your State Pension position to help optimise your entitlement. You should also consider what other savings or pensions might be required for a long and comfortable retirement.