SME Accounting News & Deep Dives: Companies House ID Verification Prosecutions, the Dividend Tax Deep Dive & 5 October

UK SME director reviewing Companies House compliance requirements with a professional adviser in a modern office

Friday 18 September 2026 edition | Author: Richard

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For directors and growing businesses, this week brings three important reminders: Companies House identity verification is now being enforced, the 5 October Self Assessment registration deadline is approaching, and dividend and remuneration decisions need to be modelled carefully before the Autumn Budget.

Here is this week’s SME accounting news and practical action list.

Companies House identity verification: first prosecutions announced

The Insolvency Service announced the first prosecutions of directors who failed to verify their identity on 17 September 2026.

This is an important change in tone. Identity verification is no longer something directors can leave until a later administrative update. The 12-month transition period for existing directors and people with significant control (PSCs) ends on 17 November 2026.

Existing directors must verify by the date their company’s next confirmation statement is due. A director who acts for several companies must make sure their verified identity is linked to every company where they hold a directorship.

Failure to comply can lead to:

  • Criminal prosecution
  • Civil or financial penalties
  • The public company register being annotated as unverified
  • Problems filing the company’s confirmation statement
  • Further compliance difficulties for the company and its directors

Who must verify?

The requirement applies to:

  • Company directors
  • PSCs
  • Equivalent roles, such as members, general partners and managing officers
  • Directors of overseas companies registered in the UK
  • Other roles brought into the regime as the requirements develop

The official Companies House identity verification guidance explains the current requirements and available routes.

How does verification work?

There are three practical routes:

  1. Online through GOV.UK One Login and the Companies House online service
  2. In person at a participating Post Office
  3. Through an Authorised Corporate Service Provider (ACSP), such as an accountant or solicitor authorised by Companies House

After successful verification, you receive a personal code. This code belongs to you, not to your company. You must provide it to Companies House so your verified identity can be linked to your role.

If you use an accountant that acts as an ACSP, speak to them early. Do not assume that every accountant is automatically authorised to complete this process.

Practical steps for SME directors

Before your next filing:

  • Check every company where you are a director
  • Check each company’s confirmation statement due date
  • Complete identity verification in good time
  • Keep your personal code secure
  • Give the code to your accountant or filing agent when needed
  • Confirm that your identity is linked to every relevant company
  • Check the verification status of other directors and PSCs

The first prosecutions are a clear warning that directors need to treat identity verification as part of normal company compliance. It should sit alongside confirmation statements, annual accounts, payroll and Corporation Tax planning.

For wider context, see our Monday 14 September SME accounting news edition, which covered related company reporting and distribution developments.

Professional adviser discussing company compliance and tax planning with SME directors

Dividend tax 2026/27: why director remuneration needs a fresh review

Dividend tax rates rose by two percentage points from 6 April 2026.

For 2026/27, the dividend tax rates are:

  • Ordinary rate: 10.75%
  • Upper rate: 35.75%
  • Additional rate: 39.35%
  • Dividend allowance: £500

This means the traditional “low salary plus dividends” approach should be re-tested rather than automatically repeated.

The right remuneration mix depends on the company’s profits, the director’s wider income, available allowances, pension planning and cash-flow requirements. Salary and dividends are not interchangeable from a tax and compliance perspective.

Salary, dividends, National Insurance and pensions

A salary may create:

  • Employee National Insurance considerations
  • Employer National Insurance costs
  • Potential use of the Employment Allowance, where the company qualifies
  • PAYE administration
  • Pension contribution opportunities

Dividends are paid from distributable post-tax profits and do not operate in the same way as salary. They also need to be considered alongside the shareholder’s other income and personal tax bands.

Employer pension contributions may form part of a wider remuneration strategy, but they still need to be assessed against the company’s circumstances, affordability and long-term plans.

The important point is that there is no single extraction formula that suits every director. A company should model salary, dividends, pensions and retained profits together.

Corporation Tax rates for the year beginning 1 April 2026

For financial years beginning on 1 April 2026:

  • The small profits rate is 19% on profits up to £50,000
  • The main rate is 25% on profits over £250,000
  • Marginal relief applies between those thresholds, with an effective marginal rate commonly stated as 26.5%

The thresholds are reduced for associated companies and short accounting periods.

Before the year end, directors should ask their accountant to model:

  • Expected taxable profits
  • Corporation Tax
  • Salary and dividend options
  • Retained cash requirements
  • Pension contributions
  • Associated-company effects
  • The timing of distributions

This is particularly important before the Autumn Budget on 28 October 2026. Avoid making dividend, salary or remuneration decisions based on rumours. Use confirmed rules and updated calculations.

A suitable limited company accountant or one of the corporation tax accountants available through Accountant Search can help you compare the options. This is generic information, not personal tax or accounting advice.

5 October Self Assessment registration deadline

The self assessment deadline approaching on 5 October is a registration deadline, not the deadline for filing the tax return.

Anyone filing a 2025/26 return for the first time must tell HMRC by 5 October 2026. That is now roughly two and a half weeks away.

The online filing deadline is later: 31 January 2027.

HMRC’s improved online registration service means a Unique Taxpayer Reference should appear in the taxpayer’s online account within about 72 hours rather than being sent by post.

Company directors should check whether they need to file personally because of:

  • Salary
  • Dividends
  • Benefits
  • Property income
  • Savings or investment income
  • Other taxable income

For the official timetable, see the GOV.UK Self Assessment deadlines reference.

Self-Assessment tick-box

If you need personal tax support, complete the Accountant Search SA registration form and tick the Self-Assessment box.

Accountant Search is a curated directory and digital matchmaking/referral platform, not an accountancy practice. It collects your requirements and helps introduce you to suitable professionals. Self Assessment support starts from £300 inc VAT.

You can also learn more about finding a Self Assessment accountant or search for an accountant near me.

SME adviser and business owner reviewing a tax calendar and digital records

MTD for Income Tax: 7 November quarterly update

The first MTD for Income Tax cohort is made up of taxpayers with qualifying income over £50,000.

For this group, the next quarterly update deadline is 7 November 2026.

HMRC has confirmed that there will be no penalty points for late quarterly updates during 2026/27. However, the reporting obligation still applies. Late annual returns and late payments can still result in penalties.

The next wave begins on 6 April 2027 for taxpayers with qualifying income over £30,000, based on their 2025/26 figures. The first quarterly period for that group runs from 6 April to 5 July 2027.

HMRC has also been auto-signing-up eligible taxpayers who did not register. Directors and business owners should check their position rather than assuming that no contact means no obligation.

Our 11 September 2026 SME tax update covered MTD auto-sign-up and related compliance changes.

Autumn Budget: 28 October 2026

The Autumn Budget is now only a short time away.

Growing businesses should use the remaining weeks to:

  • Update cash-flow forecasts
  • Review outstanding tax liabilities
  • Check upcoming Corporation Tax and Self Assessment payments
  • Model dividend and salary scenarios
  • Review pension contribution plans
  • Avoid making decisions based on speculation

The objective is not to predict every Budget announcement. It is to understand your current position so that you can respond quickly when confirmed measures are published.

SME action checklist

This week, limited-company directors should:

  • Complete Companies House identity verification
  • Check the next confirmation statement deadline
  • Link the personal code to every company role
  • Ask whether their accountant acts as an ACSP
  • Review 2026/27 salary and dividend assumptions
  • Model Corporation Tax before the year end
  • Check whether personal income creates a Self Assessment filing obligation
  • Register by 5 October if filing for 2025/26 for the first time
  • Prepare for the 7 November MTD quarterly update, where relevant
  • Review cash flow before the 28 October Autumn Budget
  • Avoid tax decisions based on rumours

For another perspective on choosing support, read our 17 September guide to curated accountant matchmaking for UK SMEs.

If you are searching for accountants for small business or a business accountant UK companies can work with, start with Find an Accountant and complete the form with your requirements.

Disclaimer dated 18 September 2026: This article provides generic information for limited companies and growing SMEs. It is not personal tax, accounting or legal advice. Rules, rates, deadlines and guidance can change, so obtain professional advice based on your circumstances before acting.