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

Are you a Residential Landlord?  Do you want to know what expenses you can claim to reduce your tax bill?  Then you should read this…………

As well as costs involved in repairs and maintenance being a Residential Landlord can be costly in terms of time spent on administration tasks.  Although you cannot offset your time against the rental income you receive, you can claim for replacing kitchen and bathroom equipment and fixtures and fittings.  Repairs to the building.  Membership to a landlord association.  Rubbish Removal.  All of these, subject to restrictions, can be allowable expenses for tax.

We have put together a fairly comprehensive list of the allowable expenses which may be of help, however, we suggest that you seek the advise of your accountant before making any claim to ensure that the expense fits the criteria for offset against your rental income.

For example –

When replacing items such as a shower or kitchen appliances, the replacement should be “like for like”.

Should you decide to undertaker repairs yourself, although you can’t claim for your time, you can claim the cost of any equipment you may need to hire.

Repairs and Maintenance expenses

• Replacing windows
• Roof slates/tiles, guttering
• Repairing or replacing bathroom items
• Boiler repair/replacement
• Leaking or burst pipes water/gas
• Electrical wiring repairs
• Repairs to outside walls – cracks in render/repointing brickwork
• Redecorating
• Treating damp and or condensation
• Garden and cleaning costs incurred
• Disposing of garden waste / items beyond repair or no longer needed

Between tenancy expenses

• Utility costs incurred
• Council tax costs incurred
• Advertising for new tenants

Legal and professional expenses

• Accountancy fees
• Tenancy agreements / management fees / letting agent fees
• Subscriptions to relevant associations
• Insurance costs
• Ground rents and service charges

Replacing furnishings and equipment

Landlords who rent out a furnished or part-furnished property, may be able to claim Replacement Domestic Items Relief.

Talk to us, we can help with any of the expenses that you can or cannot claim.

 Making Tax Digital for Income Tax – MTD

We keep hearing about changes to the tax system commonly referred to as MTD.

What is this all about?

How does it affect you?

The government states that Making Tax Digital is a key part of their Tax Administration Strategy. 

This will, over a period of time, apply to all businesses and landlords.  It will mean that you will be required to: –

• keep digital records
• use software that is compatible with Making Tax Digital (currently there are only 5 software houses that can offer this)
• submit updates every quarter, bringing the tax system closer to real-time information, making it similar to VAT submissions.

The most significant change that you need to be aware of right now is that from April 2024, all self-employed traders will need to prepare accounts to the new Basis Period to fit in with the Tax Year.  The existing Basis Period rules (the Current Year Basis) will be abolished and replaced with the Tax year Basis of Assessment.  This applies to all trading income that falls under Income Tax, and includes individuals with a profession or vocation; partners in a trading partnership; other unincorporated entities with trading income, such as trading trusts and estates and non-resident companies with trading income charged to Income Tax, collectively referred to as businesses.  This means that if your current year end differs to 31^st March or 5^th April, you will need to include accounts to cover the additional period to the end of the tax year for 2023/2024.

In 2023/2024, the basis period will be made up of two different sets of figures:

• A ‘standard part’ being the normal basis period (i.e. the 12 months following the end of the basis period for the 2022/2023 and 
• A ‘transition part’ running from the end of the standard part to 31^st March or 5^th April 2024. 

For example, if your current accounting period ends on 30/09/2023, then you will need to report actual figures for this period plus an estimation for the period from October 2023 to 31/03/2024 or 5^th April 2024.  The additional profits running from the end of the current year to the end of the tax year for 2023/2024 will bring the accounts into line with the new Basis Period, the new rule comes into full effect from April 2024 for the 2024/2025 Tax Year.

Steps have been introduced to reduce the impact of this change –

businesses can deduct any overlap relief, (where a change of accounting date has occurred, the new accounting date is more than 12 months from the old accounting date, and the trader has overlap profits which have yet to be offset) from the additional transitional profits and the total remaining profits can then be spread over a period of up to 5 years.

We have matters in hand for our existing clients,but if you want advice as to what you need to do, contact your accountant, if you have one, or you can contact us, to see how this impacts your business.

In the past MTD has been delayed by HMRC on a number of occasions, but this is happening now and delaying having your paperwork and accounts sorted is not an option.