• What are digital records – any records that are kept using a software programme, this can include spreadsheets
• What should be included in the quarterly updates – the total amounts, not details of each transaction
• When should I record the transactions – you can record income and expenditure at a time that suits you, they do not have to be recorded in real time, as long as they are complete for the quarter before submitting your update for that quarter
• When are the quarterly returns due – filing deadlines are 7 August, 7 November, 7 February and 7 May each year
• What happens if I miss a filing deadline – a new penalty regime based on points is in operation for Making Tax Digital for income tax, once the threshold is reached a financial penalty of £200 is applied by HMRC
• What happens if I make a late payment – you will be charged penalties for late payment of income tax
• How many tax returns are there – there is one Making Tax Digital tax return each year, the quarterly updates are not tax returns

for further information on what this means for you, and how it impacts on you, contact us and we will be happy to discuss the implications specific to your particular circumstances

The Employment Rights Act 2025 introduced changes to the operation of Statutory Sick Pay (SSP) from the 6^th April 2026.

These changes include –

• Employees will be paid from the 1^st complete day of sickness – there is no longer the requirement for 3 ‘waiting days’ before claiming SSP
• Employees are not required to be paid above the Lower Earnings Limit (LEL) for National Insurance Contributions
• SSP will be paid at 80% of Average weekly earnings or the standard weekly rate of £123.25, whichever is the lower

As Synergy Accounting will ensure that their payroll clients conform to the new requirements no action is necessary, they just need to be aware of the changes.

If you are not a payroll client but would like our assistance in this respect, or other payroll matters,  please do not hesitate to contact us.

The hourly rate for the minimum wage depends on your age and whether you are an apprentice.
You must be at least:
school leaving age to get the National Minimum Wage your school leaving age depends on where you live.
aged 21 to get the National Living Wage – National Minimum Wage will still apply for workers aged 20 and under
In England you can leave school on the last Friday in June if you’ll be 16 by the end of the summer holidays
You must then do one of the following until you’re 18:
• stay in full-time education, for example at a college
• start and apprenticeship
• spend 20 hours or more a week working or volunteering, while in part-time education or training

The hourly rates are:
• 21 years and over £12.71
• 18-20 years £10.85
• Under 18 years £8.00
• Apprentice £8.00

These rates represent a 4.1% increase for those aged 21+ and an 8.5% increase for 18–20-year-olds.
Apprentices are entitled to apprentice rate if they are either aged under 19 or aged over 19 and in the first year of their apprenticeship.
Apprentices are entitled to minimum wage for their age if they both are aged over 19 or over and have completed the first year of their apprenticeship.
These rates represent a 4.1% increase for those aged 21+ and an 8.5% increase for 18–20-year-olds.

There seems to be some confusion with how the Companies House system for Identity Verification works.

Identity Verification is a two-stage process.

Stage one verify your identity and receive a Personal ID code – consisting of 11 characters

Stage 2 submit that code to Companies House for each Directorship and each Person with Significant Control (PSC).

Stage 2 must be completed within a Submission Window – these windows vary by company and between the roles of Director and PSC even where the same individual holds both roles.

Companies House will not accept early submissions thus some ID codes can be held for some months before the system will allow the codes to be filed.

Further information can be found by following the links below –

Verify Your Identity

When you need to Verify your Identity

How will the budget increase Tax and National Insurance for employers and individuals  from April 2026 –

• Dividend Income to be taxed at an additional 2% (up from 8.75% to 10.75% for basic rate taxpayers and from 33.75% to 35.75% for higher rate taxpayers)
• Savings Income will be taxed at an additional 2% (22% for basic rate taxpayers and 42% for higher rate taxpayers)
• Rental Income will be taxed at an additional 2% (22% for basic rate taxpayers and 42% for higher rate taxpayers)
• National Living Wage to rise to £12.71 per hour for employees aged 21 and over and £10.85 per hour for those aged 18 to 20 years

Increases will be incurred by these measures for future years –

• Pensions will be subject to National Insurance will apply to Salary Sacrifice Pension Contributions if more than £2000 per annum (from 2029)
• Income Tax thresholds will be frozen for a further 3 years (until 2031)

Since 2002 HMRC had allowed double-cab pickups to be treated as vans for Income Tax, Corporation Tax and Benefits In Kind.

However, HMRC guidance was updated with effect from April 2025, the tax year 2025/2026.

As a consequence double-cab pickups are unlikely to be classed as goods vehicles because their primary purpose is not the transportation of goods.

Whereas in the past, the decision to buy a double-cab pickup may have been driven by the favourable tax rules for vans and, whilst the VAT position has not changed, the changes for benefit-in-kind and capital allowances purposes may influence those who might previously have chosen a double-cab pickup to make a different decision going forward.

To help businesses manage the changes, HMRC has introduced transitional arrangements, which vary depending on the type of tax involved.

Get in touch if you would like help in clarifying the position based on your particular circumstances before making any decision regarding whether to have a double-cab pickup for your next vehicle.

From 18 November 2025 a Confirmation Statement cannot be submitted unless the personal unique ID code for every director is included in the filing process. This means that before the Confirmation Statement is submitted every director of the company will need to have their identification verified to the satisfaction of Companies House and obtained their personal unique ID code.

Using the ‘Verify your identity for Companies House’ service

This service uses GOV.UK One Login to verify your identity. It is free of charge. 

GOV.UK One Login will ask you some simple questions to find the best way for you to verify your identity. Depending on your answers, you’ll then be guided to verify:

• with an app 
• by answering security questions online 
• by entering your details from your photo ID on GOV.UK One Login first, then going to a participating Post Office

contact us for further details

How does this affect you?

Now that Furnished Holiday Lettings are treated in the same way as Residential Lettings for tax purposes you need to be aware of the difference between the two tax regimes.

Three major changes are –

• Property owned jointly between spouses is split equally between the couple, unless the property is owned in unequal shares, in which case an application can be made to have the income and expenditure apportioned in line with the share of the ownership.  The application cannot be backdated and so the 50:50 split would apply up to the date of the application.
• Capital Allowances can no longer be claimed for any new equipment purchased.  You can only claim a deduction for the cost of replacing existing equipment.
• Profits will no longer be treated as relevant earnings for calculating the tax relief on pension contributions

If you own a Furnished Holiday Let and would like to know how the changes impact you contact us and we will be happy to guide you through the changes in relation to your individual circumstances.

What a contrast to the Spring 2024 Budget.

The headliner for the 2024 budget was the 2p cut in National Insurance Contributions – contrast that to the 2025 Spring Budget National Insurance hike for Employers.

The rate of Class 1A Employer NICs will increase to 15%, in addition the threshold will reduce to £5000.

This combined with the increase in National Living Wage is bound to have a major impact on employers and ultimately on the number of employees in the work place.

The National Living wage from April 2025 is:

• National Living Wage (21 and over): £12.21 per hour
• National Minimum Wage (18-20): £10.00 per hour
• National Minimum Wage (16-17): £7.55 per hour
• Apprentice Rate: £7.55 per hour 

Employers looking to reduce costs should talk to us about Salary Sacrifice Pension Contributions.

2023/2024 – brought everyone’s accounting period into line with the tax year.  Although it only affected those who did not have an accounting year ending the 31^st March or the 5^th April. For example if you started trading in August 2000 and your accounting year end was set for a year from that point then your accounting year end would have been 31^st July 2001.  Your accounts would have been prepared to the 31^st July each year thereafter.  In 2023/2024 your accounts would have been prepared to cover the year to the 31^st July 2023 as well as the additional period from the 1^st August 2023 to the 31^st March 2024. Technically the year should be in line with the tax year (6^th April – 5^th April each year) however, HMRC have allowed accounts to be prepared to cover a full month rather than preparing accounts for a few days.  So it is probable that your accounts have been prepared to the 31^st March in order to bring your accounts into line with the tax year.

• Mandatory filing MTD for Income tax – Sole Traders and Landlords  – starts in April 2026 depending on your income.
• The threshold for mandatory filing in April 2026 relates to those with a total income of more than £50,000.  The relevant year for the £50,000 limit is 2024/2025.  So if your total income from trading and or rental income is more than £50,000 for the tax year ending 5^th April 2025 you will be mandated to file MTD from April 2026.

Exactly what this means for you and how it impacts on you contact us and we will be happy to discuss the implications specific to your particular circumstances