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Kenneth Morris Limited Chartered Accountants, Taxation Consultants, Business Advisers

29/10/2026

The Chancellor's Budget includes changes affecting savings, property income, business disposals, payroll, pensions and the way tax is reported and paid. Some measures are new, while others confirm plans announced previously. Many will not take effect immediately, giving taxpayers time to consider th...

28/10/2026

Could businesses benefit from greater software choice?The Competition and Markets Authority has announced a new investigation into competition within the UK business software market, raising questions about whether organisations have sufficient freedom to select, combine and change the software they...

27/10/2026

Concern about energy costs among UK businesses has reached its highest recorded level since the Office for National Statistics began asking its current survey question in March 2026. According to figures published on 8 October, 72% of businesses expressed some degree of concern about energy prices,....

26/10/2026

Changes to Self Assessment reporting for Directors

HMRC have clarified the position on Self Assessment tax return reporting requirements for directors of close companies and updated their guidance for directors of charities.

A close company is a company that is owned or controlled by a small number of people, usually five or fewer shareholders.

New requirements

Additional reporting requirements for directors of close companies came into force for Self Assessment returns from 2025-26 onwards. Those who are affected now need to report the following on their tax return:

The name of the close company.
The registered number of the close company.
The amount of income they receive from dividends from that company in that tax year.
The percentage of their shareholding.

Only close company directors who are currently required to complete a Self Assessment return need to report this information. However, the information must be provided even if the company is only a close company for part of the tax year.

Up until now it has been unclear whether directors who are unpaid or who are not shareholders of the company need to provide this information, and HMRC have now addressed this.

What have HMRC said?

HMRC have confirmed that when directors are unpaid and/or have zero shareholdings in the close company, they must still complete the new boxes on the tax return.

Directors of dormant close companies must also complete the new boxes.

Where no dividend income has been received, or there is no shareholding, '0' will need to be entered in the appropriate boxes.

However, directors of registered charities or Community Interest Companies do not need to complete the new boxes if they have not received, nor become entitled to receive, any employment income or dividend income. This includes any other type of distribution from that company or any connected company.

HMRC have highlighted that a £60 penalty may apply if the boxes on the tax return that are related to close companies are completed incorrectly.

If you need any help with completing your tax return, or are unsure whether these requirements apply to you, please get in touch. We’d be happy to help you.

[email protected]

KM continuing to support you

Do get in touch if you have any queries

If you have any questions on this or other related matters please continue to call and e-mail us for help.

If you would like to have a one-to-one discussion with one of the team, please e-mail us to sort an appropriate time for a call on
[email protected]
01527 872888

New contacts

Is there anyone in your network that you think would benefit from this kind of support in these challenging times? If so, please feel free to forward this message to them so they can benefit as well.

Thank you

The team at KM

22/10/2026

Cyber security is becoming an increasingly important concern for businesses of every size, particularly as criminals develop more convincing methods of impersonating suppliers, customers and senior employees. The Government's announcement on 12 October 2026 of further measures to strengthen Britain'...

20/10/2026

Small businesses considering taking on an apprentice have a new financial incentive to investigate following the introduction, from 1 October 2026, of a £2,000 hiring payment for eligible employers in England that do not pay the apprenticeship levy and recruit an apprentice aged between 16 and 24. ...

19/10/2026

Bank of England holds interest rates at 3.75%

A split decision by the Bank of England's nine-member Monetary Policy Committee has held interest rates at 3.75%. The 6-3 decision came in spite of the Office for National Statistics reporting UK inflation accelerating to 3.1% the day before. July's inflation rate was 2.9%.

Rising fuel prices due to war in the Straits of Hormuz, along with US tariffs, have seen global pressures on prices, with the UK's position exacerbated by poor domestic growth.

Businesses and homes have been put on notice by the Bank's governor, Andrew Bailey. He warned that should inflation move towards 4%, the Bank was likely to change its position.

In a surprise move, the Bank also announced that it was suspending an expected sale of £488 billion of government debt. £120 billion would be held to back the Bank’s issuance of banknotes. Other gilts would be sold to the market at a slower rate.

The Bank of England's decision came after the US Federal Reserve lifted borrowing costs for the first time since 2023.

And in other news ...

Do you know about the 159 service?

As online and telephone fraud rockets, employers and employees are being reminded of the 159 dedicated telephone number for helping people to safely contact their bank.

Launched in 2021, the service has received more than one million calls and provides a simple route for people receiving unexpected calls about financial matters to end the conversation and independently contact their bank.

The warning comes as the latest UK Finance Annual Fraud Report reveals criminals stole £1.28 billion through payment fraud during 2025, up 4% year-on-year. Authorised Push Payment (APP) fraud alone accounted for £576.4 million in losses, including £75.6 million in business losses.

England’s new tourist tax

Mayors across England are to be given the power to charge a tourist tax on overnight stays which would apply to British and foreign visitors alike.

Rather than being a flat fee, it would be a percentage of the visitor’s total spend, with proponents saying the money raised could be ring-fenced for tourism-related spending. The rules published so far, however, will allow mayors and strategic authorities to decide how levy revenues are spent.

The government consulted on the introduction of an overnight visitor levy between November 2025 and February 2026 and has decided to implement its consultation outcome document.

It will bring a bill to Parliament ‘in due course’ to introduce the levy.
All mayoral and foundation strategic authorities in England will be able to introduce an overnight visitor levy, subject to consulting locally and giving businesses advance notice of its introduction and any changes.

It will apply to all short-term visitor accommodation although there can be local exemptions for charitable accommodation, campsites or shelters. To avoid confusion for visitors and businesses, exemptions for localities will not be allowed.

Accommodation providers will be liable for the levy that will be paid through a self-assessment process. It’s up to these providers to pass on the levy to their customers or not. Local authorities will oversee both tax collection and regulation.

[email protected]

KM continuing to support you

Do get in touch if you have any queries

If you have any questions on this or other related matters please continue to call and e-mail us for help.

If you would like to have a one-to-one discussion with one of the team, please e-mail us to sort an appropriate time for a call on
[email protected]
01527 872888

New contacts

Is there anyone in your network that you think would benefit from this kind of support in these challenging times? If so, please feel free to forward this message to them so they can benefit as well.

Thank you

The team at KM

15/10/2026

When businesses think about recruitment, they can easily concentrate on attracting younger workers. The latest employment figures suggest there may be another group worth considering.Official PAYE statistics for August 2026 show that the number of payrolled employees aged 65 and over increased by 62...

14/10/2026

Another significant change to payroll is now only six months away.From 6 April 2027, employers will have to report and account for tax on several common benefits in kind through payroll in real time.The first phase covers company cars, car fuel, vans, van fuel and employer-provided medical benefits....

12/10/2026

SMEs warned on all internet-exposed systems

Disruptive cyber attacks are going beyond computers and into manufacturing and processing systems, Small to Medium-Sized Enterprises (SMEs) have been warned.

The National Cyber Security Centre (NCSC) has seen a concerted and increased number of attacks on what’s known as Operational Technology (OT) in numerous sectors both globally and domestically. These attacks have had real-world effects.

Hackers cut off a small gas-fired 'peaker' power station earlier this year. These UK plants have small local capacities, are remote with no employees and use OT to balance local baseload and feed into the national grid.OT is both the hardware and software systems that monitor, control and automate infrastructure and processes across a variety of sectors.

The NCSC is warning that organisations should not assume their equipment is not internet-exposed. It said, “Against the backdrop of technology-enabled uplifts in cyber capability and increased geopolitical instability, the NCSC assesses that the threat from state use of offensive cyber, including outside of conflict, has almost certainly increased.”

Without organisations testing legacy structures, older equipment or misconfiguration, systems can be easy to exploit for state and non-state actors.

Companies should examine all their Programmable Logic Controllers (PLCs), Industrial Control Systems (ICS) and Supervisory Control and Data Acquisition (SCADA) systems to ensure their security.

The NCSC has outlined a series of steps that should be taken.

Build a definitive view of your OT architecture, including all assets, communications pathways and external connections. This will help identify internet-exposed systems, unmanaged assets and legacy connectivity that may introduce risk.
Ensure OT devices are not directly exposed to the public internet.
Change any default credentials and prevent the use of shared passwords on web interfaces, management interfaces, and management protocols.
Use unique accounts for administrators and enable multi-factor authentication (MFA) wherever supported. Any stronger authentication mechanisms, such as public/private key authentication, are recommended.
This includes the control of access to OT networks. The NCSC recommends updating systems efficiently. This also includes ensuring that the management of these devices is only possible from a segregated management network that is not connected to the internet.

The NCSC proposes updating certain industrial protocols and security applications, which it lists on its website, including procedures.

If it wasn’t important before, IT departments should ensure they log and monitor all connectivity to and within OT networks. As OT environments are typically static and predictable, baseline monitoring can be highly effective at identifying unauthorised activity, misconfigurations, or potential cyber compromise.

Monitoring is also important during normal operations. PLCs, in particular, should not be left in programming or maintenance modes and should be in write-protected mode where possible.

The NCSC also recommends the separation of networks; for example, the business and management system should be separated from OT and, come to that, security systems.

Don’t just keep backups; it is important to test the backups and your recovery procedures. Many organisations, including those regarded as ‘tech-savvy’, have been diligent in backup procedures but then hit problems when it came to restoring their data.

[email protected]

KM continuing to support you

Do get in touch if you have any queries

If you have any questions on this or other related matters please continue to call and e-mail us for help.

If you would like to have a one-to-one discussion with one of the team, please e-mail us to sort an appropriate time for a call on
[email protected]
01527 872888

New contacts

Is there anyone in your network that you think would benefit from this kind of support in these challenging times? If so, please feel free to forward this message to them so they can benefit as well.

Thank you

The team at KM

Address

Bromsgrove
B603AL

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Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

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