September Bulletin 2025
Welcome to our September Bulletin
As summer comes to a close and autumn approaches, it’s a good time to review the latest developments affecting businesses and individuals. The Autumn Budget is set for 26 November 2025, with updates on tax, investment, and economic policy expected.
Meanwhile, the Bank of England cut its Bank Rate to 4% on 7th August 2025 and kept it unchanged again last week. Financing is now easier than it was a year ago, though the Bank cautions that returning inflation to its 2% target won’t be simple.
This month's ABMV tax bulletin will cover:
Companies House Identity Verification – Starts 18 November 2025
Crackdown on Late Payments
HMRC Checking “Associated Companies” on Corporation Tax Returns
New Advisory Fuel Rates for Company Cars – From 1 September 2025
Online “Time to Pay” Now Available for More Simple Assessment Users
HMRC Going Digital – Fewer Tax Letters by Post
ACSP - Authorised Corporate Service Providers
Supporting you through the Making Tax Digital (MTD) for income tax transition
ABMV staff take on the Walk Tonbridge marathon
Companies House Identity Verification – Starts 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.
Directors
Existing directors will need to provide their personal verification code when filing the next confirmation statement after 18 November 2025.
New directors appointed after that date must provide the code when incorporated or appointed.
People with Significant Control (PSCs)
PSCs will have 14 days to submit their personal code once the requirement begins.
An online service will be available from 18 November 2025 to make the process straightforward.
Crackdown on Late Payments
What Small Businesses Need to Know
The UK Government has announced tough new rules to tackle late payments, which affect over half of small firms.
From 2026, large companies that pay suppliers late could:
Be removed from the Prompt Payment Code
Lose access to public sector contracts
Finance directors will be personally accountable for payment practices, and poor behaviour will be harder to hide.
Why it matters:
Late payments tie up an estimated £20bn in unpaid invoices, damaging cashflow and limiting growth — especially for sole traders and SMEs.
Key changes:
Persistent late payers risk losing government work
30-day terms will be standard for public sector suppliers
A new Payment & Cashflow Review Board will oversee progress
Remember: under the Late Payment of Commercial Debts Act, you can charge 8% above the Bank of England base rate plus recovery costs on overdue invoices.
These reforms aim to make prompt payment the norm and support small business cashflow.
HMRC Checking “Associated Companies” on Corporation Tax Returns
HMRC is contacting businesses that may have claimed marginal relief incorrectly by not including all their associated companies on Corporation Tax returns.
Since 1 April 2023, Corporation Tax rates are:
19% for profits up to £50,000
25% for profits over £250,000
Profits in between may qualify for marginal relief, but the thresholds reduce if you have associates (e.g. with one, they drop to £25,000 and £125,000).
Associated companies are those under the same control — a complex area where mistakes are common.
If you receive an HMRC letter:
Check your associated companies for the period.
Amend your return (within the 12-month window) or make a voluntary disclosure if it’s too late.
Reply within 30 days.
Similar rules affect other taxes, such as the employment allowance, so review those too.
Please get in touch for any further advice.
New Advisory Fuel Rates for Company Cars – From 1 September 2025
HMRC has updated the advisory fuel rates (AFRs) for company cars, which set the mileage amounts employers can reimburse (or employees repay) without triggering tax or NIC charges.
Rates from 1 September 2025:
Engine size Petrol LPG Diesel
Up to 1,400cc 12p 11p 12p
1,401–2,000cc 14p 13p 13p
Over 2,000cc 22p 21p 18p
Electric vehicles:
8p per mile if charged at home
14p per mile if charged at a public charger (new this quarter)
Hybrids follow petrol or diesel rates.
Online “Time to Pay” Now Available for More Simple Assessment Users
HMRC has widened access to its online payment plan service for those with tax bills issued by simple assessment.
Simple assessment is used where you owe tax (e.g from your state pension) that can’t be collected through PAYE and you don’t need a full self-assessment return. HMRC sends a letter showing the calculation, and payment is normally due by 31 January after the tax year (or within 3 months if the letter arrives after 31 October).
You can now set up a Time to Pay arrangement online, no phone call required if:
Your tax bill is £32 to £50,000; and
You have no other payment plans or debts with HMRC.
Apply through the self-service area of your personal tax account via the Government Gateway.
HMRC Going Digital – Fewer Tax Letters by Post
HMRC has confirmed it is moving to a digital-by-default approach, meaning most tax letters (e.g. reminders and return notices) will no longer arrive by post unless you’re classed as digitally excluded.
Messages will instead be sent via your Personal Tax Account or Business Tax Account, with email or text alerts where enabled. Only key legal notices and letters for digitally excluded taxpayers will still be posted. HMRC expects the change to save around £50m.
What to do:
Make sure you’re registered for your online tax account and can log in.
Turn on email or text notifications — but watch for phishing scams.
Contact us if you’d like help setting up your account or reviewing messages.
We’ll continue to support clients through the transition to ensure deadlines and notices aren’t missed.
ACSP - Authorised Corporate Service Providers
Under the Economic Crime and Corporate Transparency Act 2023, Companies House must now verify the real identity of individuals involved in corporate governance, including directors, PSCs, and third-party filers, to reduce fraud and improve transparency.
This can be done through your Gov One account, or as Authorised Corporate Service Providers (ACSPs), we offer this service to everyone.
Timeline
From Autumn 2025, it will become mandatory for new company incorporations, director appointments & PSCs to verify their identity.
From Spring 2026, it will become mandatory for all filings at Companies House, including filings by ACSPs, to verify their identity.
Supporting you through the MTD for Income Tax Transition
Making Tax Digital (MTD) for income tax will affect businesses and individuals in different ways — for some, it may require only minor changes, while others may need to overhaul parts of their current processes.
Whether you need advice on choosing the right software, setting up digital record-keeping, or simply understanding what’s changing, we’re here to help.
If you'd like to discuss how MTD may impact you and your business and how to prepare effectively, please don’t hesitate to get in touch.
Charity News
On Sunday, September 21st, Team ABMV (plus four friends!) joined more than 150 fellow walkers to take on the incredible challenge of a 26.2-mile marathon walk from Tonbridge Baptist Church to the Old Fire Station.
It wasn’t easy; we’re all feeling those sore muscles today, but the team spirit carried us through. A special shout-out goes to Charlie the dog, who trotted along without a hint of tiredness!
We were lucky enough to get the sunny skies we’d hoped for, which made the day even more memorable. Huge thanks to everyone who helped organise the event, and to all the amazing volunteers who kept us going along the way.
We’re so proud to have been part of this walk, kindly supported by CooperBurnett Solicitors, raising much-needed funds for Sustain, the Tonbridge-based food bank working tirelessly to tackle food poverty in our community.
If you have any questions or would like to learn more about how we can help you with your accounting and business advisory needs, please don’t hesitate to contact us. Our team of experts is always ready to assist you with any queries you may have.
