14th November 2025 – Hillmans Weekly Update

Welcome to our latest round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!

Have a great weekend.

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Reminder: Companies House Identity Verification Becomes Mandatory from 18 November 2025

From 18 November 2025, identity verification with Companies House will begin to be required for all company directors and People with Significant Control (PSCs). This is part of a phased rollout introduced to improve the reliability of information on the UK company register and reduce the risk of economic crime.

When You Need to Verify Your Identity

It’s important to note that 18 November 2025 is not a deadline. It is the start of the requirement. You must complete identity verification before your next relevant filing after that date.

The exact date each person must verify will vary, and Companies House will contact companies directly. Broadly, the requirements are as follows:

Directors
    •    Existing directors must verify their identity as part of their company’s next confirmation statement that falls on or after 18 November 2025.
    •    If you are a director of more than one company, you must verify for each role.
    •    New directors must verify their identity as part of the company incorporation or appointment process.

PSCs (Persons of Significant Control)
    •    If you are both a PSC and a director, you must verify separately for each role.
    •    PSC verification must be completed within 14 days of the confirmation statement date.
    •    If you are a PSC but not a director, you must verify within the first 14 days of your birth month.
    •    For example: if your date of birth is 20 December, your verification window begins on 1 December.
    •    If you become a PSC after 18 November 2025, you must verify within 14 days of being added to the Companies House register.

Future Phases

Companies House has confirmed that identity verification will expand later to include:
    •    Limited partnership roles
    •    Corporate directors
    •    And potentially all individuals involved in filing on behalf of companies

How to Verify Your Identity

There are two ways to verify:

1. Directly with Companies House

Using:
    •    A GOV.UK One Login account
    •    A Companies House account
    •    And a valid form of ID (passport or driving licence)

Once verified, you will receive an 11-character Companies House personal code.
This code is personal to you, not to your company, and can be used across all companies where you hold a role. You will need this code to enable agents (such as accountants, solicitors, and formation agents) to file on your behalf.

2. Through an Authorised Corporate Service Provider (ACSP)

Our firm, Hillmans, is registered as an ACSP and can complete the verification process for you.

This can be useful if:
    •    You prefer us to handle the entire process
    •    You struggle with online verification
    •    You have multiple roles across different companies

A fee applies for this service. If we carry out the verification, your personal code will be sent securely to the email address you choose.

Step‑By‑Step Guidance Available

We’ve prepared a simple walkthrough with screenshots covering:

    •    Creating your Companies House account
    •    Setting up your GOV.UK One Login
    •    Completing identity verification
    •    Retrieving your personal code

You can find the guide here on our website:
🔗 https://hillmans.co.uk/how-to-get-your-companies-house-personal-code

We’re Here to Help

If you need any help verifying your identity or you would like us to carry out the process for you as an ACSP, please get in touch. We’re happy to guide you through every step.

See also:
https://www.gov.uk/government/news/one-million-people-verify-identity-early-ahead-of-companies-house-changes

Budget Speculation: Are Tax Rises Looming?
The Chancellor, Rachel Reeves, gave a surprise ‘pre-Budget’ speech last week that appeared to pave the way for tax rises in the Budget on 26 November 2025.

What did she say?
The Chancellor’s scene setting speech outlined her priorities to cut NHS waiting lists, reduce the national debt, and improve the cost of living.

Quoting world challenges such as the continuing threat of tariffs, persistent inflation, the increasing cost of government borrowing, and pressures on public finances, the Chancellor acknowledged that productivity in the economy is weaker than previously thought.

This all means increasing pressure on revenue for the government.

The Chancellor indicated that her Budget would support businesses in creating jobs, innovating and protecting families from high inflation and interest rates. She further said: “If we are to build the future of Britain together, we will all have to contribute to that effort. Each of us must do our bit …”

This is the clearest indication yet that tax rises are coming for everyone. So, what could this mean for you in the Budget? Let’s explore some of the possibilities.

Changes already due to take effect in 2026 and 2027
There are still some measures announced in Autumn Budget 2024 that have not taken effect yet. These are:

• Capital Gains Tax (CGT): The rate of CGT where Business Asset Disposal Relief (BADR) applies will increase from 14% to 18% from 6 April 2026. 
• Inheritance Tax (IHT): Restrictions on 100% relief for business and agricultural property will take effect from 6 April 2026. Unused pension funds and death benefits will be brought into IHT estates from 6 April 2027.

In addition, the new Making Tax Digital for Income Tax (MTD for IT) becomes mandatory for self-employed individuals and landlords with turnover over £50,000 from 6 April 2026. While not a tax increase, there is an increase in compliance costs to those affected.
 
Predictions for Autumn Budget 2025
Manifesto promises included not increasing National Insurance, income tax or VAT rates. The October 2024 Corporate Tax Roadmap commits to keeping the small profits rate and marginal relief and not increasing the 25% main rate of corporation tax. Enhanced research and development tax reliefs and the £1 million annual investment allowance for plant and machinery capital allowances are also to be kept.

However, the Chancellor’s speech now casts a doubt on these commitments. Here are a few of the possibilities we could see.

• Freeze on income tax thresholds extended: Income tax thresholds and the tax-free allowance are currently frozen until 6 April 2028. This could now be extended to 5 April 2030, bringing more people into tax. 
• Increase to income tax rates: A one or two percentage point increase could be made to income tax rates. To generate sufficient tax revenues, it seems likely that the basic rate of income tax would need to be increased, not just higher rates. 
• National Insurance and partnerships: A current hot topic is the suggestion that the government sees partnerships as receiving a tax break because partnership profits are distributed without having to pay 15% employers’ NI. This might result in the introduction of an additional partnership NI contribution for partners. Current speculation suggests this might be limited to LLPs rather than all types of partnership. 
• Flat rate relief for pension contributions: Pension savings are currently given tax relief based on the saver’s marginal income tax rate. This could be changed so that all savers receive the same flat rate of income tax relief. This would collect more tax from higher earners. 
• Reduce pension income tax-free lump sum: Individuals can often take a tax-free lump sum from their pension when they reach retirement age. Reducing the amount that can be taken tax-free could be one of the options being considered by the Chancellor. 
• Cut Cash ISA saving limits: It was reported earlier in the year that the Chancellor was interested in restricting the amount that can be saved into a cash ISA. Nothing has happened on this so far, however, this could form part of the Budget announcement. 
• Increase the BADR rate further: The CGT Business Asset Disposal Rate is already due to increase to 18% from 6 April 2026. This could be increased further. Another CGT possibility is that the CGT rates could be aligned with income tax rates. This might mean the current 18% rate being increased to 20% and the current 24% rate being increased to as much as 40% or 45%. 
• Cap Principal Residence Relief (PRR): When an individual sells their home they pay no tax, no matter how much they receive, as PRR is unlimited. However, another possible measure could see PRR being capped. 
• Further restrictions to IHT reliefs: Possible measures could include changes to the Potentially Exempt Transfer (PET) regime, reducing or removing taper relief on gifts given three to seven years before the donor’s death, and introducing annual or lifetime limits on exempt giving. 
• VAT: There could be a mixture of good and bad news for VAT. One possibility could be a cut to the 5% VAT rate on household energy. However, privately funded healthcare might perhaps be subject to 20% VAT, like private education.

What should you take away?
Of course, predictions and possibilities of what might happen are speculative. However, the Chancellor’s determination to stick to her fiscal rules that keep the financial markets happy, coupled with the need to generate additional revenue, strongly suggest that there will be some wide-ranging changes in the Budget.

We will keep you updated on the Budget and any changes it brings. If you would like to discuss your personal situation and whether there are any actions you could take before the Budget, please get in touch. We would be happy to help you!

See: https://www.gov.uk/government/speeches/chancellors-scene-setter-speech-ahead-of-budget-2025
 
Free Recruitment Support Available to UK Businesses Through Jobcentre Plus
The Department for Work and Pensions (DWP) has launched a national campaign to offer UK businesses access to no-fee specialist recruitment support through Jobcentre Plus. The service is available to all businesses, regardless of size or sector.

Over the last year, only one in five businesses has used Jobcentre Plus services for support. This may be indicative of a lack of confidence in the service being able to locate suitable candidates.

At the same time, over half of employers in a recent DWP Employer Survey reported difficulties in finding suitable candidates. With the average cost of filling a vacancy estimated by CIPD at £6,125, it could be worth considering trying out the service.
 
Who Can Benefit?
The campaign is particularly focused on sectors with high vacancy rates, including:

• Manufacturing 
• Logistics 
• Retail 
• Hospitality 
• Health and social care 
• Construction 

However, the service is open to all employers, whether they’re recruiting for one role or many.
To find out more and access support, visit the Business.gov.uk website.
 
Skills England launches tools to help businesses upskill for the AI era
A new report from Skills England has indicated that many employers are struggling to keep pace with AI-related changes. Their ‘AI skills for the UK workforce’ report introduces three new tools that could help businesses build confidence and capability in using AI responsibly.

Sector-specific challenges
The report identifies sectors that face particular challenges. For instance:

• In Construction, opportunities such as drone surveying and augmented-reality training are emerging, but low digital literacy remains a barrier. 
• Within the Creative Industries, freelancers and small firms are adopting AI tools for content creation but often without formal training, raising concerns about quality and originality. 
• Advanced Manufacturing is already seeing benefits from automation and predictive maintenance but faces a growing skills gap as its workforce ages.

A consistent theme across all business sectors seems to be uncertainty over what is meant by “AI skills” and what staff need to learn.
 
Three new tools for employers
The three new tools are as follows:

• The AI Skills Framework - identifies the technical, responsible and non-technical skills needed across different job roles and levels. 
• The AI Skills Adoption Pathway Model - shows how businesses typically progress from early awareness to strategic adoption of AI. 
• The Employer AI Adoption Checklist - a practical tool to help businesses assess their AI skills readiness, identify workforce gaps and plan training.

These tools are designed to make AI more accessible to employers, particularly smaller businesses that often lack the dedicated HR or training teams of larger organisations.

Dr Ameen said, “AI is reshaping the world of work across sectors, but without the right skills, too many people and businesses risk being left behind.”

To find out more, the full AI Skills for the UK Workforce report and supporting tools are available through Skills England.