Companies House identity verification, the new minimum wage rates for April and The Growth Agenda Report
Companies House are set to introduce identity verification to improve data security, we clarify the updated minimum wage rates set to take effect 1st April 2025 and take a deep dive into Goldman Sachs’ Growth Agency report.
Identity verification coming to Companies House
As part of the changes being gradually introduced by the Economic Crime and Corporate Transparency Act (ECCT), identity verification is set to become a Companies House requirement.
This is one of a number of changes that the Act is making to better protect the data held at Companies House.
Who will be affected by identity verification?
Identity verification will ultimately become a compulsory part of incorporation and new appointments for new directors and persons with significant control (PSCs).
All existing directors and PSCs will also need to verify their identity as part of the annual confirmation statement filing, once Companies House make this mandatory. Anyone who files a document will also need to have their identity verified.
Mandatory identity verification is still being prepared for. However, individuals will be able to voluntarily verify their identity from 8 April 2025 using their GOV.UK One Login or via an Authorised Corporate Service Provider (ACSP).
Changes for third party corporate service providers
Last week also saw the introduction of a new service for third party corporate service providers, such as accountancy firms, to apply to register as an ACSP.
Ultimately, third party providers will have to register to be able to file information and confirm they’ve verified the identities of their clients.
ACSPs have to be:
- Based in the UK
- Register with Companies House
- Be registered with a UK supervisory body for anti-money laundering (AML) services
- Retain records of identity verification checks.
Are you ready for April 2025?
The new National Living Wage and National Minimum Wage rates will come into force from 1 April 2025.
There are also changes to the National Insurance employers pay that take effect from 6 April. For many businesses, the April payroll will represent a sizeable step up in labour costs.
As a reminder, here is a quick recap of the changes.
National Minimum Wage rates
The new minimum wage rates are as follows:
| Hourly Rate | |
| National Living Wage (21 and over) | £12.21 |
| 18-20 Year Old Rate | £10.00 |
| 16-17 Year Old Rate | £7.55 |
| Apprentice Rate | £7.55 |
| Accommodation Offset | £10.66 |
Employers National Insurance changes
The percentage rate of Employers’ National Insurance (NI) that’s paid on an employee’s earnings increases to 15% (from 13.8%).
The threshold that an employee needs to be earning before any Employers’ NI is due drops to £5,000 a year. Previously this was £9,500.
If you use online payroll software, the new Employers’ NI rates should be automatically included. However, please check with your payroll software provider if you are not sure.
If you need any help using the new rates or calculating the amount of minimum wage that is due to a worker, please get in touch. We would be happy to help you!
The Growth Agenda: Small businesses putting forward ideas for growth
Goldman Sachs published their “The Growth Agenda” report last week. This is a report that puts forwards the ideas of small business owners that could help to boost the UK economy.
The report looks at issues around several areas that affect small businesses and include ideas that may help to drive growth. The main areas discussed in the report include:
- Access to finance
- Talent and the workforce
- Artificial intelligence
- Taxation & trading
- International markets
- Infrastructure
- Climate transition
For each area, the report includes a summary of the main challenges and then some key ideas that would help to mitigate some of the challenges.
The ideas have then been summarised into a 2-page ‘Key Calls to Action’ summary. These are split between quick wins (straightforward initiatives that could be introduced relatively easily), momentum builders (initiatives that will require time and investment), and fundamental changes (ambitious ideas and major transformations).
As examples of the ideas included, a suggestion is made to expand R&D credits to include AI implementation and training to incentivise AI implementation. A business rates reform is also proposed to protect sectors that are property-intensive.
Whether these policy ideas are likely to come to fruition remains to be seen. However, the government has confirmed that it will consult on establishing the Business Growth Service it announced in December. This is to be a one-stop shop that will provide government advice and support to small businesses and help with raising finance.
To review the report in full, see: https://www.goldmansachs.com/images/community-impact/10000-small-businesses/uk/news-and-programme-information/generation-growth-the-growth-agenda/Report.pdf
Chancellor announces Fintech reforms to boost UK capital markets
Chancellor Rachel Reeves met with senior Fintech representatives at No. 11 Downing Street last week to discuss growth opportunities as well as new draft legislation aimed at streamlining financial regulations.
The proposed reforms focus on updating the Markets in Financial Instruments Directive (MiFID) rules inherited from the EU. These changes will empower the Financial Conduct Authority (FCA) to eliminate redundant regulations, creating a more business-friendly regulatory environment that supports economic growth.
This initiative, first announced in the Chancellor’s Mansion House speech last November, is a key step in the government’s broader plan to reform the UK’s wholesale financial markets and enhance the country’s global investment appeal.
Chancellor Reeves emphasised that these changes will make the UK’s financial rulebook more competitive, enabling firms to grow, invest, and contribute to economic expansion.