Now we’re approaching Halloween and Bonfire Night, all eyes will be turning to the last quarter of the year with a possibly consequential Budget for you and your clients in the middle of it. 

No matter what else happens this month, our Accounts Hub remains active so you’ll be able to access the most important and timely insolvency information whenever you need it. 

We also recognise that you can’t keep across all the stories of note, so we collect the most important and interesting business and insolvency news stories every week along with regular new blogs on a range of topics for you each and every week.

We’re always keen to hear what you think so please email us at ask@businessrescueexpert.co.uk because we really want to write what you really want to read!

Companies House launch new Five Year strategy

Companies House have announced an ambitious vision designed to boost economic growth and to continue to transform itself into a more active gatekeeper over its data and to take further steps to crack down on economic crime.

By ensuring that Companies House data is authoritative and transparent, the agency aims to increase its value to the users who depend on it, including businesses, researchers, government, public bodies and the public. 

The new 2025 to 2030 strategy outlines how Companies House aims to further improve customer experience using modern technology, ensuring efficient and seamless services for legitimate businesses. The strategy contains the agency’s vision to enhance corporate transparency by building on the progress made under reforms brought in under the Economic Crime and Corporate Transparency Act. 

By leveraging the powers contained in the Act and collaborating with key partners across government and beyond, Companies House will promote a transparent and accountable business environment. 

Companies House Chief Executive Andy King said: “This strategy positions Companies House to play a broader role in promoting economic growth and in disrupting economic crime. 

“Companies House data is used every day by businesses and citizens to inform decisions. We’ll be innovative in how we enable use of our data, in partnership with key stakeholders to unlock opportunities and support business growth.”

New Companies House ID Rules Nov 18 (and ACSP)

Directors need to be aware of the new Companies House rules coming into force on November 18th 2025 that will require all new incorporations and appointments to undergo mandatory ID checks. 

There is a 12-month transition period for all existing directors and people with significant control (PSC) to complete their verification prior to their next confirmation statement. No ID verification means no filings, potentially leaving companies and incorporated charities unable to submit legal documents or set up a new entity.

Every company director, company secretary, PSC and LLP member must be able to verify their identity with Companies House before they can make filings. 

This is a full reset of requirements meaning if you don’t verify, you can’t file. Everything from confirmation statements to new appointments could grind to a halt. 

Once verified, each individual will receive a unique personal code which will become their key to Companies House submissions going forward.

Verification is free and can be completed online with a passport or driving licence.

There are additional requirements that have to be met for accountancy firms that want to act as authorised corporate service providers (ASCP) with Companies House.

Registration for ACSP status has been open since March 18th 2025 with Companies House estimating that up to 55,000 businesses will register by the one-year mark of the launch. 

In order to provide ID verification services for clients, companies have to obtain ACSP status and from Spring 2026, will have to have the status in order to file with Companies House on their behalf. 

Firms that register as ACSPs will assume the legal responsibility for performing ID verifications correctly with Companies House maintaining the right to be able to suspend or revoke ACSP status if verifications are not carried out correctly. 

They have published a live list of ceased or suspended ACSPs (including firms that have voluntarily ceased to maintain the status).

ASCPs also have a legal obligation to keep records of all ID verifications carried out for seven years including unsuccessful verifications. This includes records of company filings carried out on behalf of clients.

Accounting changes for SMEs signalled by Chancellor

In a speech to the Regional Investment Summit recently, chancellor Rachel Reeves announced that she is planning sweeping changes to corporate reporting requirements for small to medium sized businesses. 

She said that by eliminating this “red tape” it’s estimated to save UK companies nearly £6 billion per year by 2029, or 200 hours of admin work a year. 

The main reform is an overhaul of corporate reporting rules – removing the requirement for smaller businesses to produce a strategic report while other companies will have simplified requirements for other narrative reporting.

The changes will:-

  • Exempt medium-sized private companies from producing a strategic report in the annual report
  • Exempt wholly owned subsidiaries from producing a strategic report where they’re covered by the reporting of a UK parent
  • Remove the requirement to produce a directors’ report, with some provisions to be removed entirely and others relocated elsewhere in the annual report

The monetary size thresholds for micro, small, medium and large-sized companies will be increased by approximately 50% allowing up to 132,000 companies to benefit from lighter touch requirements. 

The government also plans to eliminate “duplicative” or redundant reporting requirements from the directors’ report and director’s remuneration report and policy. 

She also announced that following consultation with stakeholders, the Treasury is going ahead with a plan to transfer all anti-money laundering (AML) and counter-terrorist financing (CTF) supervision to the Financial Conduct Authority (FCA). 

This will consolidate the current situation where 22 professional services supervisory bodies each monitor their own sectors, giving the FCA responsibility for all AML/CTF supervision.

The Treasury also reiterated that HMRC will become a “digital-first” organisation with a minimum 90% of all customer interactions undertaken digitally by 2029/30 as part of its commitment to improving customer services.

Business confidence hits three-year low

In the latest Business Confidence Monitor conducted by ICAEW, a record 60% of firms are worried about their tax burden – a tenfold increase over the last five years. 

The survey of 1,000 business leaders shows business confidence at its lowest level since the fourth quarter of 2022, having fallen for five consecutive quarters. 

Six in ten businesses cited the tax burden as a challenge compared to just 6% in Q3 2020 and is the third time since Q4 2024 that tax concerns hit a record high. Regulatory requirements are also creating significant issues for those surveyed, despite plans to reduce the burden with 47% citing this an issue – the highest proportion making this concern since 2018. 

ICAEW CEO Alan Vallance said: “Economic growth will require the country’s businesses to be confident, to innovate and to invest. But concerns over further tax rises in the Budget, which appear inevitable – are quashing any sparks of risk-taking or ambition.

“If the government is to come good on its growth mission, it must demonstrate that it is firmly on the side of business by cultivating the conditions in which they can thrive, beginning with a cast-iron commitment not to increase business taxes in this parliament. If it fails to do that, Britain risks sleepwalking into stagnation.”

Property businesses expressed the lowest confidence levels followed by retail and wholesale firms reflecting their sectors greater exposure to higher national insurance costs. The industrial sector has rebounded from negative sentiment in Q2 to positive in Q3.

Only 20% of SMEs are borrowing to invest in Q2

More negative news for the Chancellor came in a survey of Barclays Bank business customers that showed over half are delaying investment until after the Budget. 

Additionally, 80% of 2,200 SMEs surveyed did not borrow to invest in their businesses while 40% had considered borrowing to invest but did not go ahead. Immediate costs concerns are the main reason given with short-term needs being prioritised over future investments.

Over half (53%) of SMEs intended to increase investment in the next 12 months, compared to 67% of large companies over the same period. 

Abdul Qureshi, managing director of Barclays Business Banking, said: “While SMEs often face higher perceived risks due to their size and resource constraints, they also offer outsized rewards in terms of innovation, agility and regional economic impact. Striking the right balance on risk-reward is key to driving sustainable growth across the UK.”

How Accountants can best advise against Cybercrime

One of the top cyber-security experts in the county has reiterated the role accountants play as trusted business partners in raising the growing cyber threat to their clients. 

Irfan Hemani, Deputy Director of UK Cyber Security Policy at the Department for Science, Industry and Technology (DSIT) was delivering ICAEW’s Annual Cyber Lecture. 

He told attendees that, as a trained accountant himself, he recognised the influence that finance professionals had as trusted advisers to boards and senior executives “and their ability to change the dial on protecting UK businesses”. 

He stressed that while cyber threats are often treated as operational matters, they were increasingly collapsing organisations’ capacity to operate. “This should elevate cyber from being an operational risk to being a financial and strategic one.”

The evolution of cyber threats should be high on every directors threat assessment list following the recent attack on Jaguar Land Rover which is estimated to have cost the UK economy £1.6 billion in lost revenue as a result of the enforced shutdown. 

He said: “The recent attack on JLR wasn’t just a disruption to one company. JLR sits at the top of a vast pyramid of suppliers. When its systems went down, the ripple effects were really severe to a lot of companies in the supply chain.”

He outlined three steps organisations must take to strengthen their defences.

“Step One is to make cyber risk a board-level priority. The Cyber Governance Code of Practice released by the UK Government earlier this year helps companies do just that. Effective governance of cyber risk is fundamental to business resilience. Executive and non-executive directors must take ownership.

“Step Two involves businesses and their clients signing up for NCSC’s Early Warning system. This free service informs you of potential cyber attacks on your network, giving you valuable time to detect and stop an incident before it escalates. 

“Step Three is to follow Cyber Essentials (CE) throughout your entire supply chain. Only 14% of businesses assess cyber risks posed by their immediate suppliers. CE is a highly effective, government-backed scheme that certifies organisations to have foundational protections in place to prevent common attacks. It’s the minimum cyber security standard that businesses should seek to obtain – and organisations with CE are 92% less likely to make a claim on their cyber insurance.”

New Self-Assessment dividend reporting requirements for directors

Company directors and shareholders face new mandatory reporting requirements for declaring dividends from profits for owner-managed and family-run “close” companies. 

Failure to comply will incur a £60 fine for each failure to disclose in the tax return. 

Close companies are usually privately owned limited companies controlled by five or fewer participants including shareholder directors. The reporting for the compliance ruling by HMRC begins in the next financial year starting in April 2026. 

The requirements are that for each company they hold shares in, they have to divulge: 

  • Name and company registration number
  • Amount of dividend income received
  • Percentage of share capital held

The aim for enhanced dividend reporting for privately owned companies will give HMRC better visibility over dividend income and help identify unpaid or underpaid tax more effectively.

The current basic dividend rate above the allowance is 8.75%, with the higher rate at 33.75% and the additional rate at 39.35%. Dividends are not business costs and are therefore deducted from the balance sheet, not the “dashboard” profit & loss sheet.