Companies House move online, and a downturn in construction
Today we give you the lowdown on Companies House as it switches to GOV.UK One Login, giving user a one stop shop for government services. We also unpick the news regarding Barrett Developments as their profits drop, could this be a sign of trouble ahead? As student loan interest rates decrease, will this affect you or your employees?
Companies House online services to move to GOV.UK One Login
Last week, Companies House confirmed that their online services will move to the GOV.UK One Login beginning from autumn 2024.
The GOV.UK One Login is becoming an increasingly important way of accessing government digital services. It means that you only need one account, one username, and one password to access a range of government services.
The Login is already used for a number of government services, including those related to being an apprenticeship provider, finding and applying for grants, and in Wales to manage fishing permits and catch returns.
Ultimately, the GOV.UK One Login will be used to access all GOV.UK services, which eventually would include tax services. Companies House services moving across will be a major step towards this goal.
The Find and update company information service will be the first to move across, with the Webfiling service being moved at a later date.
As part of the changes being made by the Economic Crime and Corporate Transparency Act, any person who sets up, runs, or controls a company in the UK will need to verify their identity.
The GOV.UK Login will be used when Companies House implement this requirement so that users can verify their identity directly.
If you need any help with your company secretarial requirements, please just get in touch, our team will be happy to help you!
See: https://www.gov.uk/government/news/companies-house-to-join-govuk-one-login
Barratt Developments’ profit drop sends ripples through construction and property sectors
Barratt Developments, the UK’s largest housebuilder, has reported a significant decline in pre-tax profits, down by three-quarters for the year ending June 2024. This comes as the company completed just 14,000 homes, a sharp decrease from 17,000 the previous year, with forecasts suggesting even lower figures of 13,000 to 13,500 homes for the upcoming year.
For businesses in the construction and property sectors, this slowdown could be a signal of challenging times ahead. High interest rates are deterring potential buyers, while inflation continues to push up costs, creating a ripple effect across the supply chain.
If housebuilders are scaling back their operations, then construction firms, contractors, and suppliers of building materials may need to brace for a reduction in demand.
Architectural firms and estate agents and mortgage brokers may also need to look at strategies to maintain profitability, if project pipelines thin and fewer new homes enter the market.
The new Labour government’s ambitious plans to build 1.5 million homes over the next five years could counter current estimates if the suggested planning reforms, green belt adjustments, and mandatory housing targets for local authorities are effectively implemented.
While these reforms are being welcomed, analysts are suggesting that a further easing of mortgage rates is needed before activity will pick up significantly.
See: https://www.bbc.co.uk/news/articles/c8rx23jdkd5o
Plan 1 student loan interest rate to change to 6%
The Plan 1 student loan interest rate reduced to 6% (from 6.25%) from 30 August. This rate change applies across the UK with the Department for Education (DfE), the Welsh Government and the Department for the Economy in Northern Ireland (DfE NI) all confirming the change.
The reduction follows the Bank of England Base Rate changing to 5% earlier in August.
Those running payrolls and payroll bureaus should notice a reduction in student loan deductions for relevant employees in their September payrolls. If not, you may need to confirm that your payroll software has correctly updated.
See: https://www.gov.uk/government/news/change-to-plan-1-student-loan-interest-rate-announcement