skip to navigationskip to main content
Business Companion Newsletter October 2025
                                               View this email in your browser    
Home |  About Us |  Software |  Services |  Resources |  News |  Contact

Welcome to our Newsletter for October 2025.

Why not have a closer look at our website?  It is intended to provide advice and support, rather than just marketing appeal. Do have a browse of some of our briefings, for example: 

– How to find your best selling price – we give you a mathematical explanation of how to set prices in different conditions of margin.  
– There is also a comprehensive archive of our monthly newsletters.  
– You could have a quick check of the value of your salary costs to the actual employee.  

October 2025

• Directors: Complete your identity verification by November 18th!

• Companies House: Changes to Company Accounts reporting and requirements

• The new Cryptoasset reporting framework

• Business and Agricultural Property Reliefs
 

Directors: Complete your identity verification by November 18th! 


AMENDED ARTICLE
As we explained in our August Newsletter, from November 18 2025, Companies House will require compulsory identity verification for UK Company Directors and Persons with Significant Control.  Anyone setting up, running, owning or controlling a company in the UK now needs to verify their identity to prove they are who they claim to be. Companies House should have written to you, but if you haven’t done already, please verify your identity now!

We have broken the process it into four main steps and given some guidance below.  We have not included all the individual questions, which are slightly different depending on whether you are on a Smartphone or Computer.  Do get in contact if you need help with the process or if you would like to give us feedback. 

Tips:
1. Although you can use a smartphone or computer for most of the process, you must use a smartphone to complete the second part (scanning your ID), so you may find it simplest to use a smartphone for the whole process. 
2. If you can’t do the process electronically you can go to a participating Post Office and they will do it for you. Take your letter from Companies House (if you have one) and your passport or other id document. 
3. You can use a current UK passport for your id as long as your smartphone has an NFC reader.  If not, you can use your driving licence photocard. 

Step 1: Create GOV.UK One Login (using Smartphone or computer) 
a. Go to https://www.gov.uk/guidance/verify-your-identity-for-companies-house Scroll down and click the Green Button ‘Verify your Identity’. Then the Green Button ‘Go to GOV.UK One Login’. 
b. The first time you use this service click on the green button ‘Create your GOV.UK One login’.  
c. Follow the steps to create this account: type in your email address, your password and then add your mobile phone number. The system will do email and phone security checks. Record your login details for future use. If you already have a Companies House Webfiling account you should use the same email address and password as you use for that. 
d. You should get a message saying, ‘You’ve created your GOV.UK One Login.’
e. It then invites you to ‘Open GOV.UK ID check’, click on this green button

Step 2: Start the Companies House Verification Procedure 
a. It then asks you to enter your Companies House password – use the same one created for your GOV.UK One Login (above).   
b. For the question ‘Has your Identity been verified for Companies House?’, select No. 
c. Continue through the next pages, selecting where you live, device type (Smartphone or computer) and photo ID (passport or driving licence photocard).
d. Agree to download the GOV.UK ID Check App.  
 
Step 3: Use the GOV.UK ID Check App (on Smartphone) to check your ID
a. Download and install the App on your Smartphone
b. On the App follow instructions to scan your passport photo page and then the biometric chip on the front cover.  Alternatively scan your driving licence photocard as instructed.
c. Follow instructions to scan your face with your Selfie camera 
d. You should get the message ‘We’ve successfully matched you to the photo on your ID.’ 
e. Click ‘go to GOV.UK’ to exit the App

Step 4: Complete the Companies House Verification Procedure 
a. You are now back in GOV.UK.  Enter your postcode/address and click Continue
b. Allow GOV.UK to check your details by clicking through ‘Continue’
c. At the end it will say ‘Identity Verification Complete’ & will display your Companies House Personal code (XXX-XXXX-XXXX).  Well done – you have completed the process! Record the code.
d. Your code can be retrieved again by logging back into the initial web address from step 1 https://www.gov.uk/guidance/verify-your-identity-for-companies-house and follow instructions to manage your account and view your code. 
e. Please pass your code onto Simple Accounting ltd so we can make changes or file your next confirmation statement at Companies House.

Companies House: Changes to Company Accounts reporting and requirements


From 1 April 2027, Companies House will require all companies to file annual accounts digitally using commercial software, with paper and direct web-based filing options ending. Companies House are also changing other requirements for Company Accounts. Here are some of the key points which affect small companies.  

The online accounts and Company Tax Return service will close on 31 March 2026. If you have prepared micro-entity or small company audit exempt accounts, you can use the service to file until this date.

Filing your accounts on paper  – the paper filing route will close on 1 April 2027. From this date, if you file on paper you will need to use commercial software to file accounts with Companies House.

Micro-entity accounts
Micro-entities can prepare and file a balance sheet with less information than for a small, medium or large company. Additionally, a micro-entity can benefit from the exemptions available to small companies such as:
•         exemption from audit
•         the requirement to file a directors’ report or profit and loss account at Companies House

From 1 April 2027, Companies House are streamlining the accounts filing options for micro-entity companies. As part of the changes, micro-entities will be required to file a copy of their profit and loss account. Small companies will have to file a copy of balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account.

Please contact us if you need more details of these changes. 

The new Cryptoasset reporting framework


From January 2026, UK businesses facilitating cryptoasset exchanges must collect user and transaction data and report it to HMRC under the new cryptoasset reporting framework (CARF).

The first report, which will cover the period from 1 January to 31 December 2026, must be submitted to HMRC by 31 May 2027.
If you hold cryptoassets (such as bitcoin; stablecoins; and non-fungible tokens) you will need to give certain personal details to every cryptoasset service provider you use, to make sure you are paying the right tax.

The information includes:
•    name, address, and date of birth;
•    tax residence;
•    national insurance number or tax reference; and
•    summary of crypto transactions.
Failure to provide this information may result in a fine of up to £300. Service providers face fines of up to £300 per user for incomplete or inaccurate reporting.

The self assessment tax return for 2024-25 includes new boxes for reporting gains and losses from cryptoassets separately from other assets. The CARF will allow HMRC to reconcile taxpayers’ records with information received from service providers to ensure the correct amount of tax is paid.

If you own (or have owned) cryptoassets, contact us to discuss what you need to report to whom and confirm you are meeting your tax obligations. 

Business and Agricultural Property Reliefs


Draft legislation has been published giving more insight into how and when proposed restrictions to two major inheritance tax (IHT) reliefs will be implemented.

At the Autumn Budget 2024 the Chancellor announced plans to reform business property relief (BPR) and agricultural property relief (APR). Draft legislation published on 21 July 2025 gives more detail on how the restrictions will operate.

From 6 April 2026, the first £1m of combined business and agricultural assets will continue to attract IHT relief at 100%. For assets over £1m, the relief will be halved to 50%. This means that assets qualifying for BPR and/or APR will suffer IHT at an effective rate of 20% on what used to be tax-free. The BPR for qualifying Alternative Investment Market shares will be reduced from 100% to 50% with no £1m allowance.

According to the draft legislation the £1m limit will gradually increase over time to keep up with inflation, beginning in 2029-30 when the current 20-year freeze on the nil-rate band (NRB) is due to end.

The NRB is the amount you can pass on when you die without suffering IHT. Any unused NRB can be inherited by your spouse and added to their own NRB. Crucially, the £1m allowance for BPR and APR is not transferrable between spouses in the same way. This means that existing wills may need to be rewritten and/or assets transferred between spouses to make optimal use of the allowance. We can help you with this.

The new rules will apply to deaths from 6 April 2026, but transitional rules could affect gifts from 30 October 2024. The legislation is still in draft form and an update is anticipated in the Autumn Budget on 26 November 2025. 

Need Help?


Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.

New Clients Welcome


If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services.

See details of our Business Companion Service.

About Us


Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Solar Accounts, Quickbooks or Xero.

‘All clients using these software packages can benefit from our support. Visit our website www.simpleaccounting.co.uk for a look at the resources on offer.’
If the images contained within this email do not show correctly please add this email to your safe senders list.

Legal Disclaimer


Click here for legal info
Copyright © 2025 Simple Accounting Ltd, All rights reserved.

Our mailing address is:
admin@simpleaccounting.co.uk

Want to change how you receive these emails?
You can unsubscribe from this list.