October business update: Companies House changes, smart meters, cyber security, director reporting and Benefits In Kind
As experienced chartered accountants in Birmingham, Barnett Ravenscroft supports businesses, company directors, employers, shareholders, SMEs and family businesses with practical accounting, tax and business advice.
In this October business update, we look at several important developments affecting UK companies and business owners. These include Companies House login changes, new online rules for objecting to company strike-off, foreign investment in UK companies, the compulsory smart meter rollout for small businesses, cyber security warnings for internet-exposed systems, additional Self Assessment disclosures for directors of close companies, and mandatory payrolling of Benefits In Kind.
These updates highlight the importance of keeping company records, payroll processes, tax reporting and business systems up to date.
Companies House brings the changes
Companies House has changed its login process, and from December, objections to a limited company being struck off must be made through its ‘Make an objection’ online service.
As of last month, all new users must use a GOV.UK One Login to find and update company information services. Existing users with a registered Companies House account can continue to use their current login details for now, but these will need to be moved to the GOV.UK One Login system in the future.
A GOV.UK One Login allows individuals to use one email address and password to access many government services. To sign in, individuals will need an email address, password and a second check, using Multi-Factor Authentication through an authenticator app or SMS.
For companies, directors and anyone responsible for statutory records, this is a useful reminder to check who currently has access to Companies House services and whether internal processes need to be updated.
Shared Companies House accounts
If a business currently has a team sharing one account to access Companies House records, it should prepare for change.
Each GOV.UK One Login must belong to one person. To avoid problems, each person who needs access should create their own Companies House account linked to their own GOV.UK One Login.
Sharing a single account after linking it to GOV.UK One Login can trigger security checks that may lock users out.
This is particularly relevant for businesses where several people may need access to Companies House, such as directors, finance teams, company secretaries, administrators or external advisers.
Good housekeeping now can help avoid filing delays or access problems later.
Company strike-off objections
From 1 December 2026, objections to a limited company being struck off must be made through the ‘Make an objection’ online service.
Email objections will no longer be accepted.
Companies House says this change will make submitting objections easier, quicker and more secure.
For businesses, creditors, directors and advisers, it is important to understand this change. Where there is a reason to object to a company being struck off, the correct online process will need to be followed.
As Birmingham accountants supporting limited companies, Barnett Ravenscroft can help directors keep statutory records up to date and understand their ongoing filing responsibilities.
Foreign investors clean up on UK companies
The latest Mergers and Acquisitions data from the Office for National Statistics shows a significant increase in foreign acquisitions of UK companies.
Foreign acquisitions of UK companies rose to £25.4 billion, up £9.7 billion from Q1 2026 and £15.7 billion higher than Q2 2025.
The article highlights that this may reflect how relatively cheap UK company valuations appear compared with foreign markets.
This compares with only seven companies listing in London so far this year.
What the M&A data shows
The domestic UK M&A landscape is mixed.
UK-on-UK deals rose in value to £4.2 billion, more than doubling from £1.8 billion in Q1 2026.
However, the number of domestic transactions fell to 130, down from 142 in the previous quarter and significantly lower than the 241 recorded in Q2 2025.
The UK deal value of £4.2 billion also compares poorly with foreign investment into the UK of £25.4 billion.
Outward UK investment also declined, falling to £2.7 billion from £4.1 billion in Q1.
The Office for National Statistics cautions that these figures are provisional and subject to revision, but the data points to a market shaped by volatility and a few high-value deals.
Why company valuations matter
For business owners, this is a useful reminder of the importance of knowing what your company may be worth.
Even where a sale is not planned, understanding valuation drivers can help with:
succession planning;
shareholder discussions;
future investment;
exit planning;
business restructuring;
funding conversations;
management planning;
tax planning; and
long-term strategic decisions.
Business owners are often focused on day-to-day operations, but a company’s value is influenced by many factors, including profitability, recurring income, customer concentration, management structure, cash flow, assets, contracts, systems and the quality of financial records.
As family business accountants in Birmingham and Birmingham business advisors, Barnett Ravenscroft can help business owners review company valuations, prepare financial information and plan ahead for succession, sale or investment opportunities.
Compulsory smart meter roll-out for small businesses
The UK government has set out its response to the consultation on the post-2025 rollout of smart meters for non-domestic sites.
The initiative targets around three million smaller businesses and public sector locations across Great Britain.
Smart meters are expected to help organisations access real-time information about energy consumption, manage costs, identify savings and make better decisions about tariffs and operational efficiency.
For small businesses facing pressure from energy costs, this is an important area to watch.
Smart-contingent contracts
A key feature of the new framework is the introduction of smart-contingent contracts for non-domestic consumers.
Smart-contingent contracts are fixed-term non-domestic energy contracts that require the installation of a smart meter.
The consultation response noted a growing trend among energy suppliers using these contracts to drive smart meter uptake, particularly among smaller organisations that have been slower to engage with the technology.
These contracts may be significantly cheaper than alternatives, but concerns were raised about inconsistent implementation. This included complex contract terms or unfair penalties if installations are delayed for reasons beyond the customer’s control.
New rules from 2027
To address these issues, the government proposes to standardise the rollout of smart-contingent contracts.
From January 2027, suppliers must begin communicating upcoming changes.
By September 2027, all new fixed-term contracts for designated premises must include a smart meter installation clause.
Suppliers will also be required to follow a legally binding consumer protection code, designed to ensure transparency, fairness and flexibility. This is especially important for customers facing financial difficulties or those needing additional works before installation.
An assessment accompanying the policy estimates significant net benefits, with anticipated smart meter uptake reaching 88% of non-domestic sites by 2030 and annual bill savings of up to £29 million.
For businesses, this is a good time to review energy contracts, understand renewal terms and consider how better energy data could support cost control.
As Birmingham business advisors, Barnett Ravenscroft encourages businesses to monitor overheads, energy usage and supplier terms carefully, particularly where costs remain under pressure.
SMEs warned on all internet-exposed systems
Small and Medium-Sized Enterprises have been warned that disruptive cyber attacks are increasingly moving beyond office computers and into manufacturing, processing and operational systems.
The National Cyber Security Centre has seen a concerted and increased number of attacks on Operational Technology across numerous sectors, both globally and domestically.
These attacks can have real-world effects.
The article gives the example of hackers cutting 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 Operational Technology to balance local baseload and feed into the national grid.
What is Operational Technology?
Operational Technology includes hardware and software systems that monitor, control and automate infrastructure and processes.
This can include systems used in:
manufacturing;
engineering;
processing;
energy;
utilities;
production;
logistics;
industrial control;
plant and machinery;
remote monitoring; and
automated systems.
For many SMEs, cyber security is still thought of mainly in terms of laptops, email accounts, cloud storage and passwords. However, this warning shows that operational equipment, legacy systems and connected devices can also create significant risk.
Why businesses should not assume systems are safe
The National Cyber Security Centre is warning that organisations should not assume their equipment is not internet-exposed.
Without testing legacy structures, older equipment or misconfiguration, systems can be easier to exploit by state and non-state actors.
Companies should examine all:
Programmable Logic Controllers;
Industrial Control Systems;
Supervisory Control and Data Acquisition systems;
web interfaces;
management interfaces;
management protocols;
external connections;
unmanaged assets; and
legacy connectivity.
For businesses in manufacturing, engineering and technical sectors, this is particularly important.
A cyber incident could disrupt operations, halt production, damage customer relationships, increase costs and create serious business continuity problems.
Practical cyber security steps for SMEs
The National Cyber Security Centre has outlined a series of steps that organisations should consider.
Businesses should build a definitive view of their Operational Technology architecture, including all assets, communications pathways and external connections.
This can help identify internet-exposed systems, unmanaged assets and legacy connectivity that may introduce risk.
Businesses should also ensure that Operational Technology devices are not directly exposed to the public internet.
Default credentials should be changed, and shared passwords should be avoided on web interfaces, management interfaces and management protocols.
Unique accounts should be used for administrators, and Multi-Factor Authentication should be enabled wherever supported.
The National Cyber Security Centre also recommends segregated management networks and ensuring that management of these devices is only possible from a segregated network that is not connected to the internet.
Monitoring, backups and recovery
Businesses should log and monitor all connectivity to and within Operational Technology networks.
Because Operational Technology environments are often static and predictable, baseline monitoring can be particularly effective in identifying unauthorised activity, misconfigurations or potential cyber compromise.
Programmable Logic Controllers should not be left in programming or maintenance modes and should be in write-protected mode where possible.
The National Cyber Security Centre also recommends separating networks. For example, business and management systems should be separated from Operational Technology and security systems.
Backups and recovery procedures are also vital.
It is not enough to keep backups; businesses should test backups and recovery procedures. Many organisations, including those regarded as technically capable, have experienced problems when trying to restore data.
Cyber security should therefore be seen as a business continuity issue, not just an IT issue.
As Birmingham business advisors, Barnett Ravenscroft encourages SMEs to consider cyber risk as part of wider business resilience, risk management, continuity planning and financial forecasting.
Additional Self Assessment disclosures for directors in 2025/26
Additional reporting requirements for directors of close companies came into force for Self Assessment returns from 2025/26 onwards.
A close company is generally a company controlled by five or fewer shareholders, or by its directors.
The new requirements mean directors of close companies must report additional information on their tax return.
This is particularly relevant for company directors, owner-managed businesses, family companies and shareholders.
What must directors report?
Directors of close companies must report:
the name of the close company;
the registered number of the close company;
the amount of dividend income received from that company in the tax year; and
the highest percentage shareholding held.
The Self Assessment return already included boxes to indicate whether a taxpayer was a director of a close company, but completing these boxes was previously optional.
The new rules mean directors of close companies are now required to complete the boxes.
Only directors who currently need to complete a Self Assessment return need to report close company information.
If the company is only a close company for part of the tax year, the new boxes must still be completed.
HMRC clarification for directors
HMRC has confirmed several important points.
Where directors are unpaid and/or have zero shareholdings in the close company, they must still complete the new boxes on the tax return. Listing unpaid directorships in the additional information box is not an acceptable alternative.
Directors of dormant close companies must also complete the new boxes.
Directors of registered charities or Community Interest Companies do not need to complete the new boxes where they did not receive, or become entitled to receive, any employment income or dividend income.
A £60 penalty may apply for incorrect completion of the close company boxes.
It is therefore important that you advise us of any directorships held in a tax year.
As company director tax advisers in Birmingham, Barnett Ravenscroft can help directors understand their Self Assessment obligations, dividend reporting, close company disclosures and director tax planning.
Mandatory payrolling of Benefits In Kind
The tax rules on Benefits In Kind are changing.
From 6 April 2027 to 5 April 2028, Phase 1 of HMRC’s mandatory payrolling of Benefits In Kind and expenses comes into force.
Phase 1 will apply only to:
company cars;
car fuel;
vans;
van fuel; and
medical benefits.
Mandatory payrolling for most other benefits will be introduced from April 2028.
Employers need to begin preparing for these changes. This will include ensuring that payroll software and internal processes are correctly set up.
However, employers should also consider communication with staff. This is important because employees may be affected in a way that is not immediately obvious to them.
Why employee communication matters
Early communication is key to helping staff understand how mandatory payrolling may affect their tax code and take-home pay.
Employees who currently pay tax in arrears on Benefits In Kind will not do so from April 2027 onwards for any Benefits In Kind included in Phase 1.
Many employees may not realise that this is how they currently pay tax on Benefits In Kind.
From April 2027, they will pay tax on Benefits In Kind for cars, vans, fuel and medical benefits in the year they receive them.
They may currently have a deduction in their tax code so that they pay tax on an estimated benefit. This will no longer be the case from April 2027 for Phase 1 Benefits In Kind.
Tax on Phase 1 Benefits In Kind must be paid in real time in the year they are received.
Avoiding confusion over take-home pay
In practice, some employees could end up paying tax in real time on some benefits they are receiving in 2027-28, while also catching up with payments for Benefits In Kind from the previous tax year.
This might make it seem to employees that they are paying tax twice.
This is not the case, but it could be confusing if it is not explained clearly.
Employees can be advised to contact HMRC to discuss options based on their circumstances if overlapping taxation causes hardship.
For employers, this change is not just a payroll software issue. It is also an employee communication, HR and finance issue.
Employers should consider:
reviewing current Benefits In Kind;
checking payroll software capability;
identifying which employees will be affected;
preparing communication for staff;
considering joiners and leavers;
reviewing payroll processes; and
planning for questions about tax codes and take-home pay.
As payroll accountants in Birmingham and business tax advisers, Barnett Ravenscroft can help employers prepare for mandatory payrolling of Benefits In Kind and explain the changes clearly to staff.
What should businesses take from this October update?
This month’s update highlights several practical areas where businesses should prepare early.
Companies House users should be ready for GOV.UK One Login and the new online process for strike-off objections.
Business owners should keep an eye on M&A activity and consider whether they understand the value of their own company.
Small businesses should monitor energy supplier communications and understand how compulsory smart meter changes may affect future contracts.
SMEs using connected manufacturing, processing or operational systems should treat cyber security as a business continuity issue.
Company directors should be aware of new Self Assessment disclosure requirements for close companies.
Employers should prepare for mandatory payrolling of Benefits In Kind and communicate early with employees.
Need advice from Birmingham accountants?
Barnett Ravenscroft Chartered Accountants, based in Edgbaston, Birmingham, provides practical accounting, tax, payroll and business advice to companies, directors, employers, shareholders, SMEs and family businesses.
Whether you need help with:
Companies House changes;
statutory records;
company filings;
company valuations;
business valuations;
shareholder and succession planning;
smart meter and energy cost planning;
cyber security risk from a business continuity perspective;
Self Assessment;
director tax reporting;
close company disclosures;
dividend reporting;
Benefits In Kind;
P11D reporting;
payroll support;
corporation tax;
business tax planning;
cash flow and forecasting;
family business advice;
our team is here to help.
If any of the topics in this October business update affect you, your company or your employees, please get in touch. We would be happy to help you understand the rules, plan ahead and make confident decisions.