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.

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.

HMRC missed out on £46.8bn in tax last year. Small businesses and Corporation Tax make up the biggest share of the shortfall.

The tax gap for the 2023-24 tax year has been published and is estimated to be 5.3% of total theoretical tax liabilities.

The tax gap is basically the difference between the amount of tax that should have been paid to HMRC and the amount of tax collected by the Exchequer. The gap includes tax that has been avoided in the UK’s black economy, by criminal activities, through tax avoidance and evasion. However, it also includes simple errors made by taxpayers in calculating the tax they owe as well as outstanding tax due from businesses that have become insolvent. 

In monetary terms, the tax gap is equivalent to lost tax of £46.8 billion. This means that HMRC collected £829.2 billion or 94.7% of all tax due.

The government has announced plans to raise a further £7.5 billion through its measures to close the tax gap.

Some of the key findings from this year’s calculations show:

• Small businesses represent the largest proportion of the tax gap (60%).
• Corporation Tax accounts for 40% of the total tax gap.
• Failure to take reasonable care (31%), error (15%) and evasion (14%) are among the main behavioural reasons for the overall tax gap.

As announced at Spending Review 2025, £1.7 billion will be provided to HMRC over four years to fund an additional 5,500 compliance and 2,400 debt management staff in order to try and ensure that more of the tax due is paid, to fund public services. 

Starting work this summer? Download the free HMRC app to get your NI number, check your tax code and stay on the right pay.

Young people finishing exams and entering the job market this summer are being urged by HMRC to download the HMRC app. The app is a free tool that can be used to provide quick access to essential employment and tax details. The app has already been downloaded by over 1.2 million people aged 25 and under. The app offers instant access to your National Insurance (NI) number, tax code, pay details and employment history.

This can be very useful information to have on-hand during the summer months when some 40,000 extra young workers are employed each month. Whether you're applying for work in hospitality, retail, leisure or seasonal roles like fruit picking, the app helps you stay job-ready with minimal hassle. Once employed, the app ensures you're on the correct tax code and receiving the right pay under the National Minimum Wage.

More than 146,000 people called HMRC last year after losing their NI number, but it is far quicker to retrieve it via the app where it can also be saved in your phone’s digital wallet. Nearly 90,000 users under 25 downloaded their NI number this way in the 12 months to April 2025.

The HMRC app is available to download, for free from the App Store for iOS and from the Google Play Store for Android. Once signed in, users can access it securely via face ID, fingerprint or a 6-digit PIN.

Young people are also reminded to check their payslips regularly to ensure they’re getting paid what they’re entitled to receive under National Minimum Wage requirements. Any underpayment concerns should be reported to HMRC or ACAS.

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.