Episode overview
Ryan Lincoln re-joins James in the first of a mini series where James and Ryan discuss current issues affecting SME’s. In this episode the focus is on upcoming changes at Companies House including identity verification for shareholders, digital filing of accounts and the prospect of all small companies reporting profit and turnover information to the public record.
Episode summary
In this episode of Summing Up, host James is joined by Ryan Lincoln to discus significant reforms being introduced at Companies House, designed to improve corporate transparency and combat fraud. Ryan explains the new identity verification requirements for company directors and shareholders, how the verification process will work in practice, and the potential consequences of failing to comply with the new regulations.
The conversation also explores the move towards mandatory digital filing and the impact this could have on smaller businesses. James and Ryan discuss proposed changes that may require small companies to file profit and loss information on the public record, raising questions around transparency, privacy and competitive advantage. They examine how these reforms could affect business owners and why organisations should begin preparing now for future compliance requirements.
Beyond Companies House reforms, the episode touches on other important developments affecting SMEs, including changes to audit thresholds, the rollout of Making Tax Digital for Income Tax, wider business uncertainty and inheritance tax planning considerations. The episode provides practical insight for company directors, shareholders and business owners looking to stay ahead of regulatory changes and understand the implications for their business operations and reporting obligations.
Key takeaways
New identity verification requirements are being introduced for company directors and shareholders.
Businesses need to understand how the verification process will work and the deadlines for compliance.
Failure to comply with new regulations could result in penalties and administrative issues.
Electronic filing of accounts is becoming increasingly important under the reforms.
Small companies may be required to publicly disclose profit and loss information in the future.
The changes aim to increase transparency and reduce fraudulent activity.
Business owners should assess the potential competitive impact of greater financial disclosure.
The episode also covers audit threshold changes and what they mean for SMEs.
Making Tax Digital remains a significant consideration for affected businesses.
Early preparation can help businesses navigate the evolving regulatory landscape more effectively.
Chapters
00:00 - Introduction: focus on small and medium businesses
00:37 - Mandatory Identity Verification (ECCTA 2023)
01:34 - Personal verification codes and ACSP role
02:02 - How the verification process works
03:31 - Deadlines and confirmation statement requirements
04:42 - Move to mandatory electronic filing (April 2027)
06:19 - Profit and loss account filing changes and pause
07:44 - Impact of public P&L: sensitivity vs transparency
10:01 - Benchmarking opportunities for businesses
11:54 - New audit thresholds (April 2025)
13:13 - Weighing voluntary audits vs strategic advisory
15:30 - Making Tax Digital (MTD) update (April 2026)
16:42 - UK business sentiment, budget speculation and wrap-up
Guest bio
Ryan Lincoln is a Chartered Accountant and Partner at Lovewell Blake, specialising in accountancy and tax advice for SMEs, family businesses, start-ups and agricultural clients. With a practical, down-to-earth approach, Ryan helps businesses navigate complex financial and regulatory issues while supporting their long-term growth and success.
