April Business Update: Director Responsibilities, Digital Tax Changes, and New Payroll Rates Explained
As trusted chartered accountants in Birmingham, we’re committed to helping business owners, directors, and employers stay compliant, informed, and confident in their financial responsibilities. In this month’s business update, the team at Barnett Ravenscroft Chartered Accountants covers three key developments that could impact your business—from director duties to tax digitisation and payroll changes.
Whether you're a limited company director, a landlord, or a sole trader, staying ahead of these changes is essential for financial health and compliance.
📌 Lessons for Directors: What We Can Learn from Ant Middleton’s Disqualification
The recent disqualification of TV personality Ant Middleton and his wife, Emilie Middleton, as company directors has sparked conversation in the business world. Their company, Sway and Starting Limited, earned over £4.5 million in income but failed to pay over £1 million in taxes. The company went into liquidation with a large overdrawn director’s loan account.
As experienced accountants in Edgbaston, we see this case as a valuable reminder of the responsibilities all company directors hold.
Key lessons for business owners and directors:
Pay Your Taxes on Time: Missing VAT or Corporation Tax payments—especially when income is available—can result in severe penalties, director disqualification, or insolvency.
Manage Director’s Loans Carefully: If you take money out of your business as a director’s loan, ensure it's properly documented and repaid in line with HMRC rules.
Understand Your Legal Duties: As a director, you have a legal obligation to act in the best interest of your company and its stakeholders.
Maintain Strong Financial Management: High turnover means nothing without financial discipline. Keep accurate records, monitor cash flow, and establish internal controls.
At Barnett Ravenscroft, we help company directors put systems in place to meet legal and financial responsibilities confidently. If you're unsure about your obligations, speak to our team of chartered accountants in Birmingham.
💻 Making Tax Digital for Income Tax – What Smaller Businesses Need to Know
The government’s Making Tax Digital for Income Tax (MTD for IT) initiative is expanding—and more sole traders and landlords will soon be required to comply.
If you are self-employed or rent out property, here’s how the phased rollout will affect you:
From 6 April 2026: MTD for IT applies to individuals earning over £50,000
From 6 April 2027: The threshold drops to £30,000
From 6 April 2028: Individuals earning over £20,000 will need to comply
Those affected must submit quarterly updates and end-of-year returns through MTD-compatible software—HMRC's free platform will no longer be an option.
If you’re not sure how this change will impact your reporting or what software to use, our experienced accountants in Birmingham are here to help. We offer MTD-compliant solutions and hands-on training to make the transition as smooth as possible.
📊 New Payroll Costs: Minimum Wage and Employer’s National Insurance
From April 2025, businesses across the UK will see increased labour costs due to changes in National Minimum Wage and Employers’ National Insurance.
New minimum wage rates effective April 2025:
New Hourly Rates:
Age GroupRate21+ (National Living Wage) hourly rate = £12.21
18–20 hourly rate = £10.00
16–17 hourly rate = £7.55
Apprentice hourly rate = £7.55
Accommodation Offset hourly rate = £10.66
Employer’s National Insurance (NI):
Rate increase: From 13.8% to 15%
Threshold decrease: NI now applies from £5,000/year, previously £9,100
Payroll software should reflect these changes automatically, but we always recommend double-checking. If you use manual calculations or need assistance applying the new rates correctly, our Edgbaston-based team can provide guidance.
🤝 How Barnett Ravenscroft Can Help
As one of the leading chartered accountants in Birmingham, we understand how overwhelming regulatory updates and tax changes can feel. Whether you’re a growing business or an established company director, our goal is to provide reliable, straightforward support that helps you make informed decisions.
If you'd like to speak to someone about:
Your duties as a company director
Preparing for Making Tax Digital
Managing payroll and labour costs
Please don’t hesitate to contact us.
📍 Based in Edgbaston, Birmingham, we serve businesses across the West Midlands with tailored accounting, tax planning, and advisory services.