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Managing a business in today’s environment entails navigating a web of regulations, compliance standards, and administrative responsibilities. This is where Authorised Corporate Service Providers (ACSPs) come in. ACSPs are trusted intermediaries who file information and verify identities on behalf of firms with Companies House, assuring compliance and fraud prevention.

With new guidelines enacted under the Economic Crime and Corporate Transparency Act, all ACSPs will be required to register their businesses beginning in Spring 2025. This blog will explain all you need to know about ACSPs, including why and how to register.

What Are Authorised Corporate Service Providers (ACSPs)?

Authorised Corporate Service Providers (ACSPs) assist UK firms in meeting their compliance needs. Experts, such as accountants, solicitors, and company formation agents, undertake crucial activities such as filing legal documents and verifying identities. They ensure that businesses comply with regulations without difficulty.

Here’s what ACSPs typically do:

• Help with company formation by filing the necessary documents.
• Manage ongoing compliance by submitting annual confirmation statements and updating company information.
• Ensure Anti-Money Laundering (AML) requirements are followed.

But starting in 2025, these responsibilities will come with stricter oversight. To keep offering these services, ACSPs will need to register with Companies House.

Why Register as an ACSP?

The new registration process isn’t just about meeting legal requirements—it’s about building trust and transparency:

1. Accuracy and Transparency

By verifying identities, Companies House can ensure that the information on the public register is accurate and dependable, resulting in a system that businesses can trust.

2. Fraud Prevention

Knowing exactly who is submitting information helps Companies House quickly spot and address fraudulent or suspicious activities.

3. Enhanced Collaboration

Registration makes it easier for Companies House and regulatory bodies to share data, strengthening efforts to prevent economic crimes and protect businesses.

If you’re an agent working with Companies House, these new changes mean you should start preparing for the registration process, so you’ll be fully prepared when it launches.

How to Register as an ACSP with Companies House

The registration process will open in Spring 2025. Here’s how you can prepare:

1. Review the Requirements

• Familiarise yourself with the changes introduced by the Economic Crime and Corporate Transparency Act.
• Ensure your business is AML-regulated and locate your membership number.
• Update your internal processes to meet identity verification standards.

2. Submit Your Application

When the registration portal opens, you will need to:

• Provide details about your business, including the AML supervisory body membership number (sometimes called an ID number).
• Verify the identity of key individuals, such as directors or sole traders.

3. Get Your ACSP Credentials

Upon approval, you will receive:

• A digital account to manage filings more efficiently.
• A unique identification number that confirms your authority to act on behalf of clients.

4. Add Team Members

Following registration, you can grant access to other employees in your business. While these employees won’t need to undergo identity verification themselves, they will be able to help with filings and identity checks for clients.

What’s in It for You?

Becoming an ACSP is not only about compliance but also about building trust and streamlining operations.

• Stay Compliant: Make sure your business meets UK company law and follows Anti-Money Laundering (AML) regulations.
• Save Time: Streamline the process of managing filings and verifying identities for your clients.
• Increase Credibility: Clients will trust you more if you are registered and authorised by Companies House.

 

Next Steps

Although registration won’t open until Spring 2025, you can start preparing now:

• Examine the changes to UK company law and comprehend the new obligations of ACSPs.
• Double-check your compliance with AML regulations and locate your membership number.
• Stay updated by following announcements from Companies House and GOV.UK.

 

Conclusion

The ACSP registration process in the UK significantly improves company compliance. By registering as an ACSP, you meet legal requirements while also promoting your company as a trustworthy partner in managing filings and fostering transparency.

For additional information on ACSPs, visit the DataTracks blog 

Tax systems in the UK are undergoing a digital revolution and Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is leading this charge. This is a big change for sole traders and landlords. MTD for ITSA is designed to reduce mistakes, save time, and simplify compliance with digital record-keeping and regular updates.

In this blog, we’ll explain MTD for ITSA, when it’s happening, and why it’s important for you.

Who Will Get Affected by MTD for ITSA?

The implementation of MTD for ITSA begins in April 2026 for:

• Sole traders earning over £50,000 annually.
• Landlords with rental revenue of more than £50,000 each year.

By April 2027, the threshold will be reduced to £30,000, bringing more people under its scope. For those with incomes below this, voluntary sign-ups are available for a head start.

Looking ahead, the government has hinted that the threshold could drop to £20,000, but there’s no set timeline yet.

What Do You Need to Do Under MTD for ITSA?

If MTD for ITSA applies to you, here’s what you’ll need to do:

• Keep Digital Records: Get rid of paper receipts and spreadsheets. Use compatible software to log income and expenses.
• Quarterly Updates: Submit digital updates to HMRC every three months, offering a real-time snapshot of your finances.
• HMRC-Approved Software: Use software that meets HMRC’s standards for submissions.
• End-of-Year Statement: Reconcile and submit a final declaration at the year’s end.

Why Does MTD for ITSA Matter?

Managing taxes can be difficult, but MTD for ITSA is here to simplify the process. Here’s how:

• Closing the Tax Gap: Did you know errors in self-assessment filings account for around £5 billion in unpaid taxes each year? By using digital tools, MTD for ITSA aims to reduce these errors and ensure everyone pays the correct amount.
• Saving Time and Reducing Stress: Digital tools automate routine tasks, so you can spend less time on admin and more on running your business.
• Avoiding the Year-End Panic: Quarterly submissions ensure your records are up-to-date, easing the final filing.

What About the Costs? 

• Upfront Costs: You might need to spend around £320 to upgrade your software and equipment.
• Ongoing Costs: Software subscriptions cost about £110 annually, though costs might be lower for those already using digital tools for VAT.
• Support from HMRC: HMRC partners with software developers to provide affordable solutions and offers webinars, helplines, and guides.

When Does MTD for ITSA Start? 

• April 2026: Mandatory for incomes above £50,000.
• April 2027: Mandatory for incomes between £30,000 and £50,000.
• Future Plans: Likely to include those earning over £20,000.

If you fall outside these thresholds, consider signing up voluntarily. It’s a great way to familiarise yourself with the system before it becomes compulsory.

What’s the Bigger Picture?

MTD for ITSA is the next step in the digital transformation of tax, building on the success of MTD for VAT, which was introduced in 2019. Many businesses using MTD for VAT have already seen the benefits—fewer mistakes, smoother filing processes, and improved financial management. MTD for ITSA promises to deliver the same advantages, making tax compliance easier and more efficient.

But it’s not just about meeting tax requirements. Going digital can simplify your financial management, uncover new ways to save money, and help you make smarter business decisions.

For more details, visit the HMRC website. 

Conclusion: A Digital Tax Future Awaits

Making Tax Digital for Income Tax is more than just a requirement; it is an opportunity to streamline your tax procedure and focus on what is actually important. While the transition may seem difficult at first, the advantages outweigh the effort.

Ready to make the switch? DataTracks can support you every step of the way. With our expertise in digital tax solutions, we will ensure a seamless transition and full compliance with HMRC’s rules.

MTD for VAT made tax filing easier. Now, MTD for ITSA is set to do the same. Don’t wait—get ahead of the curve with digital tools! Get in touch with a DataTracks expert at +44 (0) 203 608 8035 or email [email protected].

 

The OECD/G20 BEPS 2.0 Pillar Two initiative is rewriting the rules for global tax compliance. If your company earns more than €750 million in annual revenue, you’ll soon need to comply with the new 15% global minimum tax rate. It is a game-changer for businesses with a global footprint.

Countries like Japan, South Korea, Australia, and New Zealand have already introduced Pillar Two rules and others like Singapore and Hong Kong are catching up.

How will this impact your business? How can you adapt without disrupting your day-to-day operations? Read on!

What BEPS 2.0 Pillar Two Means for Your Business

Pillar Two ensures that large companies pay a fair share of taxes, regardless of location. For companies that fall within its scope, this means filing a detailed GloBE Information Return (GIR). This isn’t like the existing Country-by-Country Reporting (CbCR)—it’s much more demanding. With over 200 data points required, it’s no small task.

While the safe harbor rules offer a temporary reprieve, full compliance is on the horizon. The clock is ticking, and the time to act is now!

Safe Harbor Rules: A Helping Hand

The transitional safe harbor rules offer some breathing space. They let businesses use their existing CbCR processes to meet early compliance requirements.

One cannot, however, become complacent because this support is not permanent. Melvin Song, Head of Group Tax at CapitaLand Investment Limited, cautions: “Safe harbor rules buy time, but you’ll need that time to build the systems, processes, and strategies to handle the real challenges of Pillar Two compliance.”

Why Technology Is Your Best Ally

Let’s face it – trying to manage it all manually is just not viable. The sheer volume of data and complexity involved in this exercise, make automation a non-negotiable need rather than a needless luxury.

The key to simplifying Pillar Two compliance lies in building an integrated IT solution. Your systems for Finance, Accounting, and Tax Reporting need to work together seamlessly. It is not just a tax problem but a company-wide effort. Teams from Finance, IT, Legal, and even HR need to collaborate to make it happen.

A Simple Plan to Tackle BEPS 2.0 Compliance

Preparing for Pillar Two compliance might seem overwhelming. Let’s break down the process into clear steps to make it easier:

1. Discovery Phase:

Begin by figuring out where your data is, what’s missing, and who’s responsible for the lacuna. This involves engaging teams from across your organisation to ensure all bases are covered.

2. Design Phase:

Plan how your compliance system will operate. Can you adapt what you already have, or do you need anything new? Decide whether to tackle this in-house or seek outside assistance.

3. Implementation Phase:

Roll out your solution, test it, and train your team to use it. This process takes time, and most businesses take 6–9 months. So, don’t wait to get started!

Why XML Matters for Pillar Two and CbCR Compliance

XML plays a crucial role in simplifying compliance for both CbCR and Pillar Two filings. Its flexibility and ability to handle complicated data structures make it ideal for automating the reporting process. XML allows businesses to combine data from several systems, verify accuracy, and reduce manual errors. This streamlined technique is especially useful for managing Pillar Two’s complex data requirements.

Finding Opportunity in Compliance

Complying with BEPS 2.0 Pillar Two can be tough, but it is also a chance to enhance your company’s operations. The data gathered for compliance can serve multiple purposes, like

improving governance, supporting sustainability reporting, and aiding in strategic decision-making.

As tax compliance gets traction in the C-suite, your tax team gets the opportunity to demonstrate its value and play a more active role in driving your company’s strategy.

The Time to Act Is Now

Preparing for BEPS 2.0 Pillar Two isn’t just about ticking boxes—it’s about future-proofing your business. Using the right technology, creating a clear plan, and working closely with your teams can turn compliance into an opportunity to stay ahead.

Don’t wait for deadlines to loom. Start preparing now to handle these changes with confidence. Follow the DataTracks blog for the latest updates and insights to stay one step ahead.

If you’re a UK-based business selling non-food products into Northern Ireland and/or the European Union, you’ll be subject to GPSR as of 13^th December 2024. Failure to comply with these new rules could be costly. Read on to learn more about GPSR and what you need to do to stay on the right side of the law.

What is GPSR?

How does GPSR work?

GPSR replaces the existing EU’s General Product Safety Directive 2001 and the Food Imitating Product Directive of 1987. Enforced by market surveillance authorities, the rules aim to protect consumers and ensure accountability by bringing regulations up-to-date in light of new technologies, e-commerce, and global supply chains. GPSR applies to non-food consumer products and requires manufacturers, distributors, and online marketplaces to identify and mitigate risks, provide clear safety information, and swiftly recall unsafe products. GPSR emphasises transparency, including the use of digital tools such as QR codes for product traceability.

What you should know:

Are there exemptions from GPSR?

Are services also affected by GPSR? 

As the name suggests, GPSR only affects physical products. Services are not subject to this regulation.

How do I comply? 

What is the penalty for non-compliance with GPSR?

Penalties for non-compliance with GPSR can be severe, ranging from significant fines to product recalls and legal action. The exact penalties depend on the severity of the violation and the risks posed to consumers. In extreme cases, businesses may face fines of up to 4% of their annual worldwide turnover.

What’s meant by a ‘Responsible Person’?

How will GPSR impact my business?

GPSR will affect UK businesses by requiring enhanced product safety measures for goods sold into the EU. You’ll also need to designate a Responsible Person (RP) based in the EU to ensure compliance, which will add administration costs. You may also face additional expenses for updated safety assessments, traceability systems, and providing clearer labelling or digital tools like QR codes. For UK businesses that have limited sales into the EU or NI, the added costs of complying with GPSR may be more than their profits on such sales.

What should I do if I sell on eBay or Amazon? 

How does Swoop support international traders?

GPSR may place added burdens on your international business, but working with the best partners can help you overcome the challenges. Trust Swoop to introduce you to the best trade finance and other types of business funding, plus a range of insurance products to keep your business safe.

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Tax season can be stressful with various deadlines to remember. Missing any could result in penalties, so here’s a simple guide to key UK tax deadlines:

 

Registering for Self Assessment: 5th October

If you’re filing a self-assessment tax return for the first time, register with HMRC by 5th October. This is required if you’re self-employed or have extra income like rental or savings interest.

• Newly Self-Employed: Register online and get your Unique Taxpayer Reference (UTR).
• Returning Self-Employed: Update your details with HMRC using a CWF1 form.
• Additional Income: If you earn extra income but aren’t self-employed, fill out the form to register.

Registering on time ensures you’re ready to file your tax return.

 

 Start of the New Tax Year: 6th April

The UK tax year begins on 6th April, often bringing new tax codes and allowance updates.

• Personal Allowance: The amount you can earn before paying tax is £12,570 for 2024/25.
• New Tax Codes: Check for any changes to avoid paying too much or too little tax.

Being aware of these changes helps prevent surprises later.

 

Payment on Account: 31st July

If you’re required to make payments on account, the deadline is 31st July. This is an advance payment toward next year’s tax bill based on what you owed last year.

• Payment on Account: Spread out your tax payments to avoid a big bill in January.
• Payment Methods: You can pay online, by BACS transfer, or by cheque.

Staying on top of this mid-year payment makes tax season easier.

 

Paper Filing Deadline: 31st October

If you’re filing a paper return, the deadline is 31st October. Though many prefer to file online, paper returns are still allowed.

• Going Digital: HMRC is encouraging online filing, which is faster and easier.
• Missed the Deadline? File online by 31st January instead.

 

Final Deadline for Online Submissions: 31st January

31st January is the final day to file your online self-assessment and pay any due taxes. Missing this deadline could lead to penalties.

• Payment on Account: You may also need to make your first payment on account for the next year.
• Why File Early? Early submission gives you time to fix any issues and ensures you’re set for the next year.

For more information, visit the official HMRC website.

 

How DataTracks Can Help

Need assistance with iXBRL compliance for HMRC CT600 filings? Our experts can help ensure you’re always in compliance. Contact us at +44 (0) 203 608 8035 or email [email protected].

 

 

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“The CGT increase on asset sales/business sales could affect future retirement plans, meaning clients are working longer to some degree or saving more heavily. Salary sacrifice is now more attractive given that NI rates have increased.”

Stamp Duty Land Tax: The increase in Stamp Duty Land Tax for additional properties will affect businesses purchasing property.

This is bad news for budding property barons:the Higher Rate for Additional Dwellings surcharge of Stamp Duty Land Tax will rise from 3% to 5% as of 31 October 2024, providing those looking to move home, or purchase their first property, with a comparative advantage over second home buyers, landlords, and businesses purchasing residential property.

At the moment, buyers of homes worth less than £250,000 don’t pay stamp duty. This was doubled from £125,000 under Liz Truss’s mini-Budget in September 2022.

The threshold is £425,000 for those buying their first property. This was raised from £300,000 as part of the mini-Budget. These higher thresholds will end in March 2025, when they will revert to their previous levels. 

Current thresholds:

• £0-£250,000 (£425,000 for first-time buyers) = 0%
• £250,001-£925,000 = 5%
• £925,001-£1.5m = 10%
• £1.5m+ = 12%The single rate of stamp duty charged when firms buy dwellings worth more than £500,000 will also increase from 15% to 17%.

The single rate of stamp duty charged when firms buy dwellings worth more than £500,000 will also increase from 15% to 17%.

For small business owners in the UK, recent news of an interest rate cut from 5% to 4.75% is a welcome relief. This change marks the lowest rate in over a year and offers real benefits for businesses looking to reduce financing costs, manage debt more effectively, or explore new growth opportunities. In this blog, we’ll discuss how this rate cut could benefit your business and practical steps to make the most of it.

Andrea Reynolds, CEO of Swoop, shares her perspective:

“Another rate cut is starting to move the dial back in favour of borrowers which is great news following an eventful couple of weeks with the Labour budget and the US election. We all needed a bit of cheer going into the weekend.”

What this rate cut means for small businesses

A lower interest rate means borrowing becomes cheaper, which can have many positive effects for small business owners. Whether you’re looking to finance new projects, invest in property, or refinance existing loans, this reduced rate can further your money by lowering your repayment costs.

3 key opportunities for small business owners:

With interest rates now lower, here are some practical ways to make the most of the change:

1. Refinancing current loans  

   If you have existing loans or debts, refinancing them at a lower rate could save you money on monthly payments, freeing up cash flow that can be reinvested into your business. Check with your lender or speak to Swoop to see if refinancing could reduce your overall costs.

2. Considering growth plans 

   If you’ve been holding back on growth plans due to high borrowing costs, this rate cut might be a chance to move forward. Lower interest rates mean it’s more affordable to access funds for growth projects like new equipment, staff, or expansion. This could be a good time to work with your financial advisor to revisit those plans and see if they’re achievable with the new rates.

3. Exploring property investments 

   For businesses looking to invest in property, such as buying premises or expanding locations, lower interest rates on commercial mortgages can make financing these projects more attainable. This cut could help reduce the monthly costs of a mortgage, which might make property ownership a sound long-term investment.

How Swoop can support you

At Swoop, we’re here to help small business owners make sense of their options. With our platform, you can compare financing options—from loans and refinancing to commercial mortgages—tailored to your business needs.

Next Steps: Make the Most of the Rate Cut

This rate cut provides a valuable moment for UK small business owners to evaluate their financial strategies. Whether it’s refinancing current debt, investing in growth, or exploring property ownership, now could be an ideal time to act.

If you’re considering your financing options, visit Swoop to see how we can help. By exploring your funding options with us, you’ll be well-positioned to make the most of this lower interest rate environment and plan for a strong year ahead.

Here’s what our team has to say about the rate cut:

Ciaran Burke, Co-Founder and COO at Swoop emphasises the impact of the recent change, stating:

“After the recent budget brought tough news for many businesses, this rate cut is a welcome relief. I anticipate a surge in activity within the commercial mortgage market as savvy business owners move quickly to capitalise on the current lower rates and stamp duty rules before these are set to rise in April next year.”

AnnMarie Swift, Senior Funding Manager Commercial Property at Swoop added:

“The expected, but not guaranteed base rate cut is a relief to see – it comes on the back of a more settled economic environment with the budget now behind us, and the political landscape more clear. The lower rate is welcomed for property-based transactions, as borrowing costs start to edge down. Increased activity is expected to result”

The Economic Crime and Corporate Transparency Act (2023) will bring about some of the most substantial changes to company law since 1844. Its main goal is to make business practices more transparent and tackle financial crime more effectively.  

So, what does this mean for small and large businesses? Let’s break down the key points and what you need to know to stay ahead.  

A Stronger Role for Companies House  

Companies House has always played a key role in maintaining company records, but the new legislation gives it far more power. In the past, it acted more as a passive record-keeper, checking that documents were filed and available to the public. Now, it’s shifting to a much more proactive role. Companies House will actively make sure that the information it holds is accurate, trustworthy, and up to date. It will also have the power to prevent companies from being used for unlawful activities such as money laundering and fraud.   

Key Changes for Businesses  

The new Act presents some of the following important changes that will affect the operation of businesses in the UK. Here’s a closer look at what you need to know:  

1. Identity Verification 

One of the biggest changes is that company directors, people with significant control (PSCs), and anyone submitting filings on behalf of a company will now have to verify their identity. This means no more anonymous registrations. If you’re involved in running or managing a business, you’ll need to prove who you are. It’s a straightforward step but an important one, helping to make the system more accountable and transparent for everyone.  

2. Increased Data Sharing and Enforcement Powers 

Companies House will also be able to improve investigation by sharing information with law enforcement agencies. If something looks suspicious in a company’s filing, it can be flagged, questioned, and even rejected. This added scrutiny is crucial for preventing companies from being used for illegal activities like fraud or money laundering.  

3. Changes for Limited Partnerships (LPs) 

By spring 2026, limited partnerships (LPs) will also be subject to new transparency rules. In the past, LPs have sometimes been used to conceal ownership or shady activities. Under the new regulations, LPs will need to be more upfront about who owns and manages them. This shift will align them with other types of businesses, ensuring a consistent level of transparency and accountability.  

Timeline for the Changes  

These changes aren’t happening overnight. The government is phasing them in over the next few years, giving businesses time to adapt. Here’s a brief overview of when you can expect the key reforms to come into play:  

• March 2024: Companies House began using its new powers to query filings and remove suspicious or incorrect information. 

• Spring 2025: The first wave of identity verification starts, initially focusing on Trust and Company Service Providers (TCSPs). 

• Autumn 2025: Identity verification becomes mandatory for new company incorporations, with a 12-month window for existing companies to comply. 

• Spring 2026: Further reforms, including changes for limited partnerships, will come into effect. 

 You can visit the  Companies House for more information. 

What Should You Do to Prepare?  

For most businesses, these changes won’t cause too much disruption, provided you follow the rules. The main thing to focus on is ensuring your company’s information is accurate and up to date and that all directors and PSCs verify their identities.  

It is a good idea to start reviewing your filings now instead of waiting until the last minute. If companies ignore these changes or don’t follow the new rules, they could face penalties. On the bright side, adopting these changes early shows you are serious about transparency and good governance, which will help boost your reputation with clients and investors. 

iXBRL Tagging

If you are looking for support with converting your financial statements into iXBRL, the team at DataTracks is here to help. You can contact them at +44 (0) 203 608 8035 or via email at [email protected].