November 2025 Newsletter
Welcome to the November edition of the Net Accounting Newsletter. This month brings several significant developments that may affect many of our clients, both personally and professionally.
One major issue attracting wide attention is the UK Government’s proposal to overhaul the Indefinite Leave to Remain (ILR) system. Under the new “earned settlement” model, the qualifying period would rise from five to ten years, with faster or slower paths determined by economic contribution, integration, character, and compliance. The changes—planned for April 2026 and likely to affect most migrants already in the UK—are currently under consultation and have prompted substantial legal, social, and political debate. We are closely monitoring its progression, as this proposal may have important implications for some of our customers and their families.
In wider economic news, the Bank of England has decided to maintain the interest rate at 4%. As the central rate that shapes borrowing and saving across the UK, this decision influences mortgages, business loans, savings returns, and overall spending conditions. With the next review scheduled for 18 December 2025, upcoming decisions may carry important implications for households and businesses alike.
We must also remind our clients that the Self-Assessment deadline is approaching. Missing the filing date can lead to substantial penalties, so we strongly encourage early submission to avoid unnecessary stress or fines.
This issue also covers several important updates, including:
Finally, the recent UK Budget announcement has been highly significant. We have issued a separate summary for our clients and published a detailed blog entry on this topic. You can find it on our website.
The recent adjustments in fees are set to elevate expenditures for all registered entities, encompassing private limited companies, limited liability partnerships, charitable organizations, and foreign entities. This measure is said to be integral to a comprehensive strategy aimed at enhancing the integrity of the company register and eradicating fraudulent enterprises.
Accountancy firms will be required to pay %33 increased fees to HMRC for anti-money laundering (AML) supervision starting this December.
The Renters' Rights Act is now law but will apply to private rentals starting 1 May 2026. It introduces major reforms like new tenancy standards, limits on rent practices, and local authority enforcement powers. Landlords must prepare for these changes
HMRC’s Help for Hustles campaign assists people earning extra income during the festive season in understanding their tax obligations. Side hustlers making over £1,000 need to inform HMRC, as they may need to register for Self-Assessment. However, distinctions are made between selling personal items and taxable trading activities.
HMRC has warned employers and recruitment agencies against fraudulent schemes claiming to reduce employment taxes through tax credits. These schemes may create false documents, leading to underpayment of taxes. Employers must ensure correct PAYE and NIC payments and conduct due diligence before joining such models.
Those who have not finished identity verification will not receive services from Companies House. You won't be able to create a new company, make corporate filings, or be nominated as a new director if you don't verify your identity. Prosecution, penalties, or disqualification are possible repercussions for noncompliance.
October 2025 Newsletter
Welcome to the October edition of the Net Accounting Newsletter. As a quick reminder, our new website is now live at www.netaccounting.co.uk , designed to keep you informed with the latest news, insights, and updates affecting your business. We invite you to explore the site and share your feedback.
All eyes are now turning towards the Autumn Budget, expected in November. One of the biggest questions on everyone’s mind is whether the Chancellor will choose to raise taxes to meet fiscal targets or provide some relief to businesses still managing rising costs. The Budget promises to be a defining moment for both SMEs and sole traders as it sets the tone for the coming year.
Another key development is the recent enforcement of new transparency measures for taxing crypto-assets. HMRC is stepping up its oversight of digital currencies, ensuring that transactions and profits are properly reported. We explore this topic further in our latest blog post on our website, where we break down what the new rules mean for individual investors and small business owners alike.
This month’s newsletter also features several important updates:
As always, our goal is to keep you informed, prepared, and compliant in an ever-changing financial landscape.
HMRC has updated advisory fuel rates to include different rates for electric charging at home and public locations. Companies can split mileage costs based on charging locations. New rates are 8 pence per mile for home charging and 14 pence for public charging.
What began as isolated disputes over niche items is now reshaping how cakes, baked goods and sweet snacks are treated for tax purposes. The result is that products previously considered zero-rated are increasingly being reclassified as standard-rated confectionery, subject to 20% VAT.
Small Business UK compiled a comprehensive list of UK grants available to SMEs, many tailored to specific regions or sectors. This might be useful for start-up companies or for those who plan their enterprise to grow.
The Federation of Small Businesses (FSB) has issued a warning that numerous small enterprises and sole traders may be in jeopardy of forfeiting essential Small Business Rate Relief as a result of alterations in business rates regulations, subsequent to a legal decision.
If Child Benefit has ceased, parents can still utilize the online platform or the HMRC app to extend their claim and verify whether their teenagers are engaged in full-time education or training.
The Government has experienced a narrow defeat in the House of Lords, where peers have voted in favour of more stringent measures against fraud related to public funds. This amendment to the Public Authorities (Fraud, Error and Recovery) Bill permits the Public Sector Fraud Authority to conduct proactive investigations or recovery efforts without needing a prior request from the entity suspected of being defrauded.
These letters are intended to encourage those who has invested into crypto money to report any undeclared gains. Recipients are asked to provide details about their previous trades and account balances, with a caution that not disclosing taxable transactions may lead to additional investigations. Individuals who fail to respond or are discovered to have unreported earnings may incur penalties, interest, and, in instances of intentional evasion, the potential for criminal investigation.
September 2025 Newsletter
Welcome to this month’s update from Net Accounting. Each month we share the key developments that may affect your business, along with our thoughts on what they mean for SMEs and sole traders.
The Bank of England’s latest survey shows that firms are cutting jobs at the fastest pace since 2021. Wage growth is also expected to slow, partly due to the higher employer taxes introduced back in April. For many businesses, this highlights the importance of keeping a close eye on payroll costs and planning ahead.
In the rental sector, there are new rules designed to protect tenants. The Renters’ Rights Bill and Awaab’s Law require landlords, especially social landlords, to act quickly on health and safety risks. While these changes are welcome for tenants, they’ve also created uncertainty for landlords, with some already leaving the market.
Tax compliance is once again under the spotlight. HMRC has announced that jewellers, dentists, and payroll agents owe a combined £203m in unpaid tax and penalties. At the same time, HMRC is writing to employment businesses and recruitment agencies to crack down on mini umbrella companies (MUCs), urging them to clean up their supply chains.
On the corporate side, new anti-fraud measures are now in force. Companies could face prosecution and unlimited fines if they fail to prevent fraud that benefits their business. This is a clear sign that stronger accountability is here to stay.
You’ll find more news and analysis in the rest of this newsletter.
HMRC won a case on 17 July 2025 against fraudulent mini umbrella companies, which exploit tax reliefs, particularly the VAT Flat Rate Scheme and Employment Allowance.
If major businesses profit from fraud, they will be held accountable under the new corporate criminal offence of "failure to prevent fraud."
Individuals who have outstanding debts related to the Covid scheme to the public treasury are now presented with a limited-time chance to repay these funds before more stringent penalties are enforced.
A survey has found that 39% of landlords are preparing to quit the private rented sector as the Renters’ Rights Bill reshaping of tenant protections raises concerns about the future of letting.
More than half of UK adults are unaware of pension policy changes that could impact retirement plans. A survey shows 51% of people do not know about increases in state pension age and tax-free lump sums. The UK’s state pension age is currently 66, increasing to 67 between 2026 and 2028, then to 68 between 2044 and 2046.
The HMRC program that permits direct money collection from debtors' bank accounts has been restarted. During the epidemic, the Direct Recovery of Debts (DRD) policy was put on hold. With protections for vulnerable clients and against excessive hardship, it is applicable to debts of £1,000 or more.
Awaab's Law, which is set to be fully implemented in stages beginning October 27, 2025, is a piece of legislation established under the Social Housing (Regulation) Act 2023. This law mandates that social landlords must swiftly investigate and address significant health and safety risks, initially focusing on dampness and mould, in order to safeguard tenants' rights to live in safe and healthy housing.
Welcome to our August issue.
We're pleased to bring you this month's update on important financial and regulatory developments that may affect both individuals and businesses.
Bank of England Base Rate Change
The recent decision by the Bank of England to cut the base rate is expected to influence borrowing and repayment costs. For households on a standard variable rate mortgage of £250,000 over 25 years, repayments could fall by approximately £40 a month. However, the majority of borrowers remain on fixed-rate deals, where two- and five-year mortgage rates have continued to ease, now averaging 5% and 5.01% respectively. This adjustment may also affect HMRC's late payment interest rates, and we will continue to monitor any updates.
Research and Development (R&D) Tax Relief – Important Reminder
HMRC has been sending letters to companies reminding that R&D tax relief is strictly limited to activities that advance science or technology. The letter emphasises that it does not apply to routine business improvements, customer research, aesthetic enhancements, or the use of standard platforms and third-party packaging solutions. Business owners are increasingly being approached by agents claiming their activities qualify. Please exercise caution: if HMRC reviews a claim and finds it invalid, repayment, interest, and penalties will follow. You should never disclose HMRC login details to third parties.
Other Key Updates You Can Find Below
As always, we are here to provide guidance and support on these matters. Please do not hesitate to contact us with any questions.
Starting from 18 November 2025, company directors and individuals with significant control (PSC) will be required to authenticate their identities in order to establish a new company and to serve as a director of an existing company. Furthermore, existing directors must verify their identities when submitting their next confirmation statement, provided it occurs after 18 November. Once the compulsory ID verification is implemented, it will be considered an offense to function as a director or a person with significant control without having verified one's identity
HMRC has initiated several investigations into cosmetic surgery providers for failing to pay VAT – and the number of cases is expected to increase. The projected tax gap for VAT rose to £9.5 billion in the 2023-24 tax year, representing a 17 percent increase from the estimated £8.1 billion in unpaid VAT for the 2022-23 tax year.
The Insolvency Service has closed five companies after discovering that they were misrepresenting their financial statements, asserting a total revenue exceeding £642 million, even though there was no genuine business operation. All five companies were dissolved at the High Court in Manchester on 31 July.
HM Revenue and Customs (HMRC) is urging Self-Assessment customers to stay alert as fraudulent tax refund scams and phishing attempts persist. Customers are also encouraged to report any suspicious emails, texts, or phone calls to assist in thwarting fraudsters.
HMRC will adjust its interest rates for late payments in response to the Bank of England's reduction of the interest rate to 4.00%.
Upcoming Deadlines in September
We would like to highlight the following key deadlines occurring in September:
PAYE, NICs, student loan deductions and CIS deductions due for month ended 5 September 2025 paid non electronically
Welcome to our July issue.
There have been some important developments in this month. Initially let us look at the recent measures taken by the governments regarding economic crimes, before moving on the rest of the news..
In recent months, many of our clients have received compulsory identity verification notices from Companies House. Most were unsure why this requirement had suddenly appeared. In fact, it stems from the Economic Crime and Corporate Transparency Act (ECCTA), which came into effect in March 2025.
As it seems this Act is significantly reshaping the role of Companies House, with a strong emphasis on improving data quality, enhancing identity verification, and increasing corporate transparency. Key changes include:
It is important to remind, from autumn 2025, identity verification will become compulsory for new directors and shareholders. It is also anticipated that, by spring 2026, Companies House will require identity verification for document filings and will begin rejecting submissions from disqualified directors.
By the end of 2026, limited partnerships will be required to provide additional information, complete the identity verification transition, and support cross-checking of data between Companies House and other public and private sector bodies.
As these changes continue to unfold over the coming months, we will keep our clients informed of all important developments, as usual.
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Let us look at the rest of the news of this month. As we move into the second half of 2025, several regulatory and economic updates are set to impact the way you run your business. From expanded digital tax obligations and new data laws to upcoming changes in company reporting and a volatile retail environment, staying ahead is more critical than ever. Here’s what you need to know this month and how each development could affect your business decisions:
Crypto holders must provide personal details to all crypto service providers they use. Service providers, in turn, must collect and report this data to HMRC. Non-compliance will result in fines for both users and service providers.
The chancellor Rachel Reeves is warned that this plan to hike business rates for retailers could drive up food prices, fuel inflation, and weaken the UK’s already fragile high streets.
The government has overhauled data protection giving ICO more powers under The Data Use and Access Act 2025 (DUAA). These powers include the ability to compel witnesses to attend interviews, request technical reports, and issue fines of up to £17.5m or 4% of global turnover under the Privacy and Electronic Communications Regulations (PECR).
HMRC has announced that a new income tax modification will take effect in April of next year, affecting sole traders and landlords whose income exceeds £50,000. Individuals impacted by this change will be obligated to utilize Making Tax Digital (MTD) for their Income Tax when it is implemented on April 6, 2026.
The Financial Conduct Authority (FCA) introduced new rules in July 2025 to boost UK capital markets, following a major overhaul of listing rules. These changes aim to make it easier for SMEs to access funding but may increase reporting requirements for those seeking investment.
The number of businesses failing in England and Wales rose last month as companies absorbed higher expenses, accordıng to the data. This represented an 8% increase compared to April and was 15% greater than the same month in the previous year.
Employees are poised to manage their tax responsibilities as the government has introduced a new online Pay As You Earn (PAYE) service for approximately 35 million taxpayers in the UK, while HM Revenue and Customs (HMRC) outlines over 50 initiatives aimed at reforming the tax and customs framework in the UK.
We would like to highlight the following key deadlines occurring in August:
VAT returns and payments due for month or quarter ended 30 June 2025.
Net Accounting
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