May 2025 Tax Update: ID Checks, Making Tax Digital, Non-Dom Rules & Property Tax Changes
At Barnett Ravenscroft, we pride ourselves on being proactive and transparent in supporting our clients through financial changes. As trusted chartered accountants in Birmingham, we’re here to keep you informed of developments that could impact your business or personal finances.
In this month’s update, we’re covering important updates on:
Companies House identity verification rules
The fast-approaching deadline for Making Tax Digital for Income Tax
Major changes to the tax treatment of non-UK domiciled individuals
The end of the Furnished Holiday Lettings regime
If you’re a company director, sole trader, landlord, or expat, this is one to bookmark.
✅ Companies House ID Checks — What They Mean for You
From 8 April 2025, Companies House introduced a new identity verification process under the Economic Crime and Corporate Transparency Act 2023. These changes apply to:
Company directors
People with Significant Control (PSCs)
Anyone who files information on behalf of a company
What’s Required:
Identity verification must be completed through either:
Your GOV.UK One Login, or
A registered Authorised Corporate Service Provider (ACSP) — like Barnett Ravenscroft
Although currently voluntary, verification will become a legal requirement by autumn 2025, and for existing companies, it will be integrated into the confirmation statement process.
How We Can Help:
As an approved ACSP and leading accountants in Edgbaston, we can handle the identity verification process on your behalf:
No GOV.UK login needed
Compliance handled with ease
Integrated into our company secretarial services
If we already manage your company filings, we’ll include this service automatically. If not, and you’d like to simplify your compliance, just get in touch.
📆 Making Tax Digital for Income Tax – Less Than a Year to Go
From 6 April 2026, sole traders and landlords with income over £50,000 will be required to comply with Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).
This marks one of the most significant tax system overhauls in decades and affects how income is reported and how records are kept.
What’s Changing:
You must keep digital records using MTD-compatible accounting software.
Submit quarterly updates of income and expenses to HMRC.
Submit a final digital end-of-year return.
MTD aims to reduce errors and modernise tax filing — but it also introduces an increased administrative burden, particularly for those not currently using cloud-based accounting software.
Timeline:
April 2026: For incomes over £50,000
April 2027: For incomes over £30,000
April 2028: For incomes over £20,000
HMRC is inviting businesses to join a pilot testing programme, offering a penalty-free period to become familiar with the system.
How We Can Support You:
As leading chartered accountants in Birmingham, we offer:
Help choosing and setting up MTD software
Quarterly bookkeeping support
Guidance on digital record-keeping requirements
If you’re unsure how this affects you, get in touch now — preparation in 2025 is key to avoiding stress in 2026.
🌍 New Tax Regime for Non-UK Domiciled Individuals (Non-Doms)
From 6 April 2025, the UK tax regime for UK resident but non-domiciled individuals has changed significantly. These changes affect expats, global families, and international professionals residing in the UK.
What’s Changed:
Previously, non-doms could choose the remittance basis, where only foreign income brought into the UK was taxed. From 2025, this option is abolished.
Now:
All UK residents are taxed on the arising basis — on all worldwide income and gains.
A new 4-year Foreign Income & Gains (FIG) regime is available for new UK residents (after 10 years non-residency), allowing tax exemption on FIG for 4 years.
Inheritance Tax (IHT) Implications:
IHT now applies based on UK residency, not domicile.
If you’ve been UK resident for 10 out of the last 20 tax years, you’re considered a “long-term UK resident”.
If you leave the UK, you’ll still be in scope for IHT for 3 to 10 years after departure.
If you're a non-dom or international individual living in the UK, these rules could have a serious impact on your estate planning and investment strategy.
🏡 End of Furnished Holiday Lettings (FHL) Regime – What This Means for Landlords
As of 6 April 2025, the Furnished Holiday Lettings regime has been abolished. If you own a holiday let in the UK or overseas, your property is now part of your general property business for tax purposes.
What’s Lost:
No more 100% relief on interest payments — now capped at 20%
Capital allowances will no longer apply
Loss of valuable Capital Gains Tax reliefs such as Business Asset Disposal Relief and Rollover Relief
Income will no longer count as relevant UK earnings for pension contribution limits
Transitional Measures:
FHL losses up to 5 April 2025 can still be carried forward
Capital allowance pools can be transferred to your general property business
BADR may still apply if your business ceased before April 2025 and the asset is sold within three years
As experienced tax advisors in Birmingham, we can help you assess your position, update your records, and make the most of any available reliefs before deadlines expire.
🗂️ Need Advice on Any of These Changes?
Whether you need support with Companies House compliance, Making Tax Digital software, international tax planning, or property tax restructuring, we’re here to help.
As leading chartered accountants in Edgbaston and Birmingham, we combine technical expertise with a personal, relationship-led approach.
📧 Get in touch today to speak to a member of the Barnett Ravenscroft team.