Autumn Bulletin 2025
Welcome to our Autumn Bulletin
As the evenings draw in and autumn takes hold, attention is turning to the Autumn Budget on 26 November, where Chancellor Rachel Reeves is expected to outline key tax and economic changes. In this issue, we share the latest tax updates and reminders to help you stay ahead.
We will share a full budget update once it is announced.
This month's ABMV tax bulletin will cover:
Companies House Identity Verification – Starts 18 November 2025
Marginal Tax Relief
Statutory Sick Pay Changes – From April 2026
Coming Soon: New Student Loan Plan 5
Extra Time to Apply for Tax-Free Childcare
Travel Costs During Rail Strikes – Is It a Taxable Benefit?
HMRC Relaunches Direct Debt Recovery
Budget Watch - 26 November
2024/25 Personal Tax Returns – Get Ahead Early
Supporting you through the MTD for Income Tax Transition
Companies House ID Verification
With Companies House ID Verification now less than a month away, you might feel like you’re scrambling to get up to speed, and begin the process to meet the deadline.
Identity verification is mandatory from November 18th it’s important to prepare.
New directors must verify their identity upon appointment, while existing directors will need to do so when they file their next annual confirmation statement.
For more information with verification link http://bit.ly/4oxsaBd
Marginal Tax Relief
Do you have control of more than one company?
If so, these may be considered associated companies, which could impact your corporation tax position due to marginal tax rates.
If you’d like to discuss this further, please get in touch.
Statutory Sick Pay Changes – From April 2026
Big changes are coming to Statutory SickPay (SSP) from April 2026. The reforms will improve employee rights but could increase costs for employers.
Key points:
SSP will be payable from day one of sickness (currently from day four).
The £125 per week earnings threshold will be removed.
Employees earning less than £125/week will receive the lower of 80% of their usual pay or the SSP rate (currently £118.75).
Employers should note:
SSP cannot be reclaimed from HMRC, unlike maternity or paternity pay.
Payroll systems must be updated to calculate the new rates correctly.
Forecasting potential cost increases is recommended, especially for businesses with high staff absence.
Coming Soon: New Student Loan Plan 5
A quick heads-up for employers. HMRC has announced a new student loan repayment type, Plan 5, starting from 6 April 2026.
Here’s what you need to know:
It’ll work the same way as the current student loan plans (1, 2, and 4).
The repayment threshold will be £25,000 a year.
Employees will repay 9% of earnings above that amount.
Plan 5 applies to students who took out loans through Student Finance England and started courses from August 2023 onwards.
You’ll start seeing Plan 5 start notices from March 2026.
A few reminders:
You can only deduct one student loan plan at a time (Plan 1, 2, 4 or 5).
You can deduct a postgraduate loan at the same time as a student loan plan.
Payroll software and forms will be updated in time for April 2026.
Extra Time to Apply for Tax-Free Childcare
Good news for working parents - there’s now more time to register for Tax-Free Childcare if you’re starting a new job or returning from maternity, paternity, shared parental or adoption leave.
From 15 September 2025, parents can apply earlier than before, giving them extra flexibility and more weeks of eligibility.
Key dates:
Back at work 1 Oct 2025 – 31 Jan 2026 → Apply 1 Sep – 31 Dec 2025
Back 1 Feb – 30 Apr 2026 → Apply 1 Jan – 31 Mar 2026
Back 1 May – 30 Sep 2026 → Apply 1 Apr – 31 Aug 2026
This update helps families line up their childcare support sooner when returning to work.
Travel Costs During Rail Strikes – Is It a Taxable Benefit?
If your business helped staff get to work during the recent Tube strikes by covering extra travel costs - good news! HMRC allows a tax exemption for these situations.
Normally, reimbursing commuting costs creates a taxable benefit in kind. However, when public transport is disrupted by a strike or other industrial action, employers can pay or reimburse travel (and even overnight stays) tax-free, with no Income Tax or National Insurance implications.
A few quick notes:
The exemption only applies where disruption is due to industrial action, not general travel delays.
It covers employer-paid or reimbursed costs only — employees can’t claim a personal deduction.
Make sure your expense policy is clear on what’s covered.
In short, if you helped staff travel to work during strike disruption, no taxable benefit arises, and the costs remain deductible for the business.
HMRC Relaunches Direct Debt Recovery
HMRC is restarting its Direct Debt Recovery (DRD) process, which allows unpaid tax to be collected directly from bank accounts.
Don’t panic — it’s used very rarely and only for debts over £1,000, where the taxpayer has the means to pay but refuses, and all other contact attempts have failed.
If you or your employees are struggling to pay tax, it’s best to contact HMRC early to set up a payment plan.
Budget Watch – 26 November
Chancellor Rachel Reeves has confirmed the Autumn Budget will be delivered on 26 November. With pressure mounting to boost growth and repair public finances, a range of tax changes may be on the table, including possible reforms to Inheritance Tax, ISAs, property taxes, CGT, and pensions.
We’ll share a full update once the Budget is announced.
2024/25 Personal Tax Returns – Get Ahead Early
It’s never too early to get started on your 2024/25 personal tax return. Submitting your information early means we can confirm your Making Tax Digital (MTD) status (if relevant) and ensure everything is filed smoothly.
The HMRC filing deadline is 31 January 2026, but we recommend getting your details to us as soon as possible.
If you’d like us to handle your return, please contact the personal tax team to get started.
Supporting you through the MTD for Income Tax Transition
Starting in 6 months April 2026, Making Tax Digital (MTD) for income tax begins and 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.
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.
