SMEs are missing opportunities to innovate, grow, increase productivity and contribute more to the wider economy by not making effective use of artificial intelligence (AI), according to a new report.

Research carried out among small business owners by Censuswide for Google revealed that 59 per cent of those questioned had paused “game changing” ideas, because they didn’t have time to bring their innovations to life.

Almost two thirds (64 per cent) of UK SME owners believe that having more time to innovate could unlock significant revenue growth, with a third citing that their innovations could increase revenues by 30 per cent.

Economic analysis from business management consultancy Public First has also shown that AI-powered tools could boost SME productivity by 20 per cent.

This is comparable to adding an extra day to each working week – giving SME leaders more time to bring their game changing ideas to life.

Against this backdrop, Lancashire County Council, in collaboration with Code Institute, has launched a free AI Maturity Assessment to help businesses across the county understand their readiness for AI and identify the next steps in their journey.

The partnership will help businesses futureproof their operations and contribute to a stronger regional AI strategy.

It is designed to help businesses of all sizes, whether they’re just starting to explore AI or already implementing it by giving access to:

• A personalised AI readiness report
• A clear benchmark across six key areas: strategy, value, data, technology, people and governance
• Actionable recommendations to bridge capability gaps
• Access to expert-led guidance and short educational workshops

The initiative will also contribute to shaping Lancashire’s future AI skills strategy and funding programmes by building a regional picture of where support is most needed.

Companies can access the survey, which will provide them with their free AI readiness report, through the website of Boost, Lancashire’s Business Growth Hub: www.boostbusinesslancashire.co.uk

As we reported in our October newsletter, the Economic Crime and Corporate Transparency Act (ECCTA), which became law in October 2023, has created a raft of new measures affecting companies and their directors.

Identity Verification is a new legal requirement under the ECCTA. This means that Companies House will require formal identity verification for anyone involved in running or filing on behalf of a company.

By law you will need to verify your identity if you are:

• a director
• the equivalent of a director – for example, a managing officer
• A PSC (Person of Significant Control) – someone who owns or controls a company
• Someone who files for a company, such as a company secretary

Whilst this is a procedure that individuals can perform themselves via GOV.UK, many clients have sought help from our team of company secretarial experts that have been specially trained to deal with the procedures and are on hand to help.

If you would like some help with this, WNJ is a registered ACSP, which means that we are able to assist you with the process.

However, this still does involve you having to complete cryptographic/biometric checks.

If you wish us to assist, please complete a copy of the form using the link below for each Director/PSC you wish to be verified and return to us together with a clear pdf copy of the relevant passport photo page.

You will then receive by email a personalised request to verify your ID through our software.

https://acrobat.adobe.com/id/urn:aaid:sc:eu:b9d9883f-3327-4b43-a98c-c80fc6661418

• If you have any questions, please contact us by email acsp@wnj.co.uk or call the WNJ office on 01772 430000 and ask to speak to the company secretarial team

Companies House will require identity verification for anyone involved in running or filing on behalf of a company

The Economic Crime and Corporate Transparency Act (ECCTA), which became law in October 2023, has created a raft of new measures affecting companies and their directors.

Identity Verification is a new legal requirement under the ECCTA. This means that Companies House will require formal identity verification for anyone involved in running or filing on behalf of a company.

In the first of a series of articles we look at what the implications are for business owners and directors.

By law you will need to verify your identity if you are:

• a director
• the equivalent of a director – for example, a managing officer
• A PSC (Person of Significant Control) – someone who owns or controls a company
• Someone who files for a company, such as a company secretary

When you need to verify varies depending on your role. Directors are required to provide their personal verification code in the company’s next confirmation statement after November 18, 2025.

A PSC, who is not a director, will need to verify within 14 days from the start of their birth month.

Individuals can verify their identity through several different means, including through accountancy and law firms registered as ACSPs – however, we cannot do this without co-operation from the individuals concerned.

One way is by using the ‘Verify your identity for Companies House’ service, which uses a Gov.uk One login to verify the identity across all UK government services online or through the Gov.uk One app available on Apple and Google.

There are some simple questions to find the best way to verify the user’s identity. Depending on the answers, ID can be verified using the app, by answering security questions online, or by entering details from a photo ID online and getting verification in person at a participating Post Office.

It will be an offence not to comply with the new ID verification requirement. Penalties could be charged for non-compliance once the system is up and running.

As an indication, the penalty for failure to file accounts on time ranges from £150 to £750 depending on company size.

If the ID procedures are not completed, companies will not be able to file their confirmation statements leaving them open to penalties and further action by Companies House.

It is understood that no documents will be filed at Companies House if the identification procedures for all directors and PSC’s have not been completed.

How to verify your ID

You can complete the ID verification yourself via GOV.UK, Verify your identity for Companies House, or in person at some Post Offices.

When you have completed the process, you will need to provide WNJ with your identity verification code to enable us to continue filing for your company.

Please email this to us at acsp@wnj.co.uk, giving details of the company/companies with which you are involved.

• If you have any questions, please contact us by email acsp@wnj.co.uk or call the office on 01772 430000 and ask to speak to the company secretarial team.

Mark Gibbons is Funding and Partnership Manager at Rosebud, which is part of Lancashire County Council’s Business Growth Service. Rosebud provides growth support and business loans for growing businesses based in the county.

Through its range of financial and growth support services Rosebud enables businesses across Lancashire to innovate, diversify and expand.

Mark says: “There is a well-worn saying in business that ‘fail to prepare, prepare to fail’ – and nowhere is that truer than when seeking funding.

“For any business considering funding, preparation is the single most important step towards success. Lenders and funders alike want to see that a business has done the groundwork and is clear about both its needs and its future plans.”

Define the need

The first step is to understand exactly what the funding is for. Being precise about the requirement and building in a contingency will not only strengthen the case for support but also demonstrate a clear focus on return on investment.

Select the funding fit

Equally important is considering the most suitable form of borrowing.

Overdrafts, term loans and asset-backed working capital facilities all offer different advantages depending on the circumstances, so identifying the right structure early on will save time and ensure a better fit.

Show commitment

Funders and lenders also look to see what commitment the directors and shareholders are making. The introduction of additional capital from within the business helps de-risk the opportunity and provides reassurance that the management team is prepared to back its own growth ambitions.

Prepare financials

Having up-to-date financial information readily available is another crucial step. Not only does this reduce delays in obtaining a credit-backed decision, it also builds confidence with the lender.

Accurate figures show professionalism and attention to detail, both of which give weight to the business case.

Expect due diligence

Alongside this, management should be ready to answer questions on performance and outlook. This is an essential part of a lender’s due diligence process and should not be seen as a negative sign. It is simply their way of getting to know the business in depth and identifying any potential issues at an early stage.

Tell the story

Numbers alone rarely tell the full story. It is important for business leaders to provide context, especially if there have been challenging periods or more recent improvements. Framing the financials within the broader narrative of the company can bring the application to life and help decision makers see the resilience and potential of the business.

Seek support

Finally, seeking support through the process can make all the difference. Accessing the right support ensures that opportunities are not missed and that the case presented is as strong as possible. With careful preparation, clarity of purpose and the right guidance, businesses put themselves in the best position to secure the funding they need to move forward with confidence.

Mark says: “Preparation is key. Lenders want to see that you have a clear plan for growth and a robust understanding of your financial position. Before applying for funding, businesses should ensure they have strong financial systems in place, up-to-date accounts and clear cashflow forecasts. Demonstrating consistent revenue growth, profitability – or a clear pathway to profitability – can significantly strengthen your application.

“It’s also important to assess whether the timing is right. Debt finance works best when it is used for momentum, not to solve fundamental business problems, cash flow issues or to get your business off the ground. Can you clearly show that funding will generate increased revenues to service new debt?

“I would also say, look at what services are available to support you and chose the best fit for you. Rosebud, for example, specialises in Lancashire only. We have a proud track record of backing businesses that have gone on to scale into multi-million-pound operations – and even take on the business moguls in the Dragons’ Den!

“When preparing to apply, treat the process as seriously as raising investment. You’ll need a solid business plan, detailed financial projections and evidence of good governance and a strong management team. Think about how you’ll communicate your growth story and prove that the business is able to responsibly manage and utilise additional borrowing.

“Finally, don’t overlook the additional support available. Alongside funding, Rosebud provides access to valuable networks, strategic advice and resources that can all support business growth.”

• To explore how Rosebud can support your business on its growth journey, visit https://bit.ly/rosebudbusinessgrowth

Homebuyers are being warned to avoid Stamp Duty Land Tax scams following a landmark Court of Appeal decision.

HMRC is calling on people purchasing properties to be vigilant of tax agents offering to secure Stamp Duty Land Tax (SDLT) repayments on their behalf where repairs are needed to a property they have bought.

Some agents have suggested that, for a fee, they can reclaim SDLT the buyer has already paid by saying that the property is non-residential, because it’s uninhabitable.

However, HMRC warns that making claims of this kind often leave the homeowner liable for the full amount of SDLT, plus penalties and interest.

A recent Court of Appeal judgment has confirmed that housing in need of repair is chargeable at the residential rates of SDLT, and that repayment claims based solely on a property’s condition are not valid.

HMRC says the decision confirms its long-standing view that if a property requires repairs but retains the fundamental characteristics of a dwelling, it is still suitable for use as a dwelling and attracts residential rates of SDLT.

A key factor in determining suitability is whether a property had been previously used as a dwelling.

HMRC now says it is taking decisive action on spurious SDLT repayment claims, using civil and criminal powers to deal with the minority who undermine the tax system.

Anthony Burke, HMRCs deputy director of compliance assets, said: “The Court of Appeal’s decision is a major win, protecting public funds.

“Homebuyers should be cautious of allowing someone to make a Stamp Duty Land Tax repayment claim on their behalf. If the claim is inaccurate, you could end up paying more than the amount you were trying to recover.”

Anyone who is unsure of the rules should check the SDLT guidance on GOV.UK.