September Business Insights from Barnett Ravenscroft: MTD, Labour Market, Electric Cars, Small Business Reforms & More
At Barnett Ravenscroft Chartered Accountants in Birmingham, we work closely with our clients to help them navigate the ever-changing financial and business landscape. In this month’s update, we’re covering everything from Making Tax Digital for Income Tax to changes in Companies House WebFiling, government electric vehicle incentives, and critical small business policy updates.
If you’re a family business in Birmingham, a sole trader, or an owner-managed company in Edgbaston, this article is packed with expert insights to keep you ahead of the curve.
📊 Making Tax Digital for Income Tax – Are You Ready?
The government is moving forward with Making Tax Digital (MTD) for Income Tax, affecting sole traders and landlords with qualifying income above £20,000 by 2028. As a leading team of Birmingham tax advisors and small business accountants, we want to make sure you’re prepared for what’s coming.
What’s Changing?
Under the new MTD rules, sole traders and landlords with qualifying income will be required to:
Keep digital business records
Use HMRC-approved accounting software
Submit quarterly updates and a final declaration
When Will It Affect You?
Qualifying Income over £50,000, MTD becomes mandatory 6 April 2026
Qualifying Income £30,000 - £50,000, MTD becomes mandatory 6 April 2027
Qualifying Income £20,000 - £30,000, MTD becomes mandatory 6 April 2028
What Should You Do Now?
Check your income level
Review your bookkeeping systems — paper records will no longer be accepted
Switch to cloud accounting software like Xero or QuickBooks
As experienced digital accountants in Edgbaston, we can help you choose and manage MTD-compliant software or even provide a full bookkeeping service so you can stay focused on running your business.
📞 Call 0121 454 7241 or email info@braccountants.co.uk to get MTD-ready today.
📉 UK Labour Market Cooling – What Businesses Should Know
Recent data from the Office for National Statistics shows a continued softening in the UK labour market. Job vacancies dropped by 5.8% and payroll employment fell by 8,000. While the unemployment rate remains steady at 4.7%, it’s clear that employers are exercising more caution.
Why This Matters for Small Businesses in Birmingham:
Hiring costs have risen due to higher NI and minimum wage increases
Slower recruitment may affect growth plans
Wage growth remains strong at 5%, but could slow if vacancies continue to decline
As your trusted Birmingham payroll accountants, we can help you optimise your staffing and payroll costs while staying compliant with changing legislation.
⚡️ Electric Car Grant Expanded – A Smart Move for Your Business?
The government's Electric Car Grant (ECG) is gaining momentum. Over £650 million is now available for electric car buyers — and more models are included from brands like Nissan, Renault, Vauxhall, and Citroën.
Key Points:
Save up to £3,750 at point of sale on eligible EVs under £37,000
BIK tax rates for electric company cars remain low at 3% in 2025/26
Claim 100% first-year capital allowances on qualifying new electric vehicles
Lower Class 1A NI costs for employers
This grant, paired with ongoing tax reliefs for electric vehicles, makes now a great time for Birmingham-based companies to review their fleet strategy.
🚘 Need help deciding if an EV is right for your business? Contact Barnett Ravenscroft – your expert business accountants in Birmingham.
🧾 Small Business Plan: Will It Help You?
The UK government recently launched its Small Business Plan, aiming to simplify compliance and boost growth. If you’re an owner-managed company in Edgbaston, here’s what to watch:
Highlights:
Late payment reforms: Stricter rules on payment terms, fines for repeat offenders
Improved access to finance: £3 billion boost to British Business Bank, Start-Up Loans and regional funds
Red tape reduction: Promising 25% cut in compliance costs
Support for local businesses and new entrepreneurs
These changes could significantly ease cash flow and admin burdens for SMEs in Birmingham.
🧩 Why Systemising Your Business Increases Value
One of the most overlooked strategies for long-term business success is systemisation. Many owner-managed businesses in Birmingham find themselves caught up in day-to-day tasks, unable to step back and focus on growth.
Benefits of Systemising Your Business:
Frees up your time
Creates a consistent customer experience
Makes your business more valuable to potential buyers
Examples of Processes to Systemise:
Onboarding and training
Sales funnel and client communications
Invoicing, credit control, and marketing
Customer service workflows
Thinking of exiting your business in 3–5 years? Start systemising now. As leading business advisors in Birmingham, we help our clients maximise their business valuation and prepare for a smooth exit.
🏢 Companies House WebFiling Changes: Action Needed by October 2025
From 13 October 2025, Companies House will switch to the new GOV.UK One Login system.
What You Need to Know:
You'll need to link your WebFiling account to a GOV.UK One Login
Shared accounts will require each user to have a separate login
Directors and PSCs will need to verify identity by November 2025
Plan ahead to avoid disruptions. Need help? As experienced limited company accountants in Birmingham, we can guide you through the changes.
Let’s Future-Proof Your Business Together
Whether you need help preparing for Making Tax Digital, exploring the Electric Car Grant, or reviewing your business systems, Barnett Ravenscroft are your dedicated accountants in Edgbaston and Birmingham.
We’re not just here for tax returns — we’re your strategic business partners, helping you grow, systemise, and stay compliant.
📞 Call 0121 454 7241
📧 Email info@braccountants.co.uk
🌐 Visit braccountants.co.uk