In this month’s edition, read about upcoming changes under Making Tax Digital for Income Tax Self Assessment (MTD ITSA). Plus an important update from Companies House regarding verifying your identity. We’re also sharing a handy resource to help you claim all the business expenses you’re entitled to and celebrating some exciting news about our growing team and upcoming office move.
Making Tax Digital for Income Tax Self Assessment (MTD ITSA)
MTD ITSA is the next big step in HMRC’s digital transformation – and it’s coming into effect from 6 April 2026. If you’re a sole trader, a landlord, or both, and your business turnover exceeds certain thresholds, this change will affect how you manage and report your income tax.
So, who does it affect?
If your total turnover (from self-employment, property income, or both) exceeds:
- £50,000 in the 2023/24 tax year – MTD starts for you from April 2026
- £30,000 in the 2024/25 tax year – you’re in from April 2027
- £20,000 in the 2025/26 tax year – your start date is April 2028
What will you need to do?
You’ll need to:
- Keep digital financial records using MTD-compliant software such as Xero
- Report income and expenses quarterly to HMRC via that software
- Submit a final year-end report (this replaces your usual Self Assessment return) by 31 January
- Register for MTD before your start date
If you earn from both rental and self-employed income, you’ll need to report each separately.
How can we help?
At Richard Riley & Associates, we’re ready to support you at every stage of your MTD journey. From helping you choose the right software and providing training, to managing the whole process for you, we tailor our support to suit your needs.
Companies House ID Verification – Action Required from 18 November 2025
From 18 November 2025, all company directors and people with significant control (PSCs) must verify their identity under the Economic Crime and Corporate Transparency Act 2023. This is to help prevent misuse of UK companies.
Key points for directors:
- A transition year begins on 18 November – all directors must verify their identity before filing the company’s next confirmation statement.
- Example: If your statement is due 31 March 2026, all directors must be verified before then.
- You’ll need a personal code and a verification statement for each director on the confirmation statement.
- If you’re a director of multiple companies, you must complete this for each one (using the same code).
- From 18 November, new directors must verify before appointment.
Key points for PSCs:
- PSCs must also provide their personal code to Companies House.
- A 14-day deadline applies to submit your code once the requirement takes effect.
- If you’ve already verified, you won’t need to do it again – but you must provide your code for each role.
How to verify:
- Online via GOV.UK One Login – guided process using photo ID.
- Through an Authorised Corporate Service Provider (ACSP) – we can handle this for you as we are an ACSP with Companies House.
Action:
- Check your confirmation statement date and ensure all directors/PSCs verify in time.
- Overseas directors/PSCs should allow extra time for verification.
If you’d like us to handle verification as your ACSP, contact our team today to get started on admin@richardrileyassociates.co.uk
Are You Claiming All the Business Expenses You’re Entitled To?
If you’re an SME, freelancer, or contractor, understanding what you can and can’t deduct could make a real difference to your tax bill. From travel and training to software subscriptions and home office costs, there’s often more you can claim than you might realise, as long as it’s genuinely business-related and properly recorded.
- Stay compliant
- Reduce your tax bill
- Enjoy peace of mind
Want to make sure you’re not missing out? Email us at admin@richardrileyassociates.co.uk and we’ll send you our handy guide to tax-deductible expenses, packed with practical tips to help you get it right.
New Faces, New Space!
We’re recently welcomed Nutshell Accounts to the Richard Riley & Associates family and with our newly expanded team, we’re already looking forward to a summer social to celebrate together. As part of this exciting growth, we’re also in the process of moving to a larger office space at Howbery Business Park in Wallingford, a prestigious business location set in 70 acres of beautiful Oxfordshire parkland, right on the banks of the River Thames. Watch this space for more updates!
If you have any questions or would like to discuss your business’s finances, don’t hesitate to get in touch. We’re always here to help. Wishing you a fantastic month ahead!
Richard