News
| 12-03-2025
A new deal for GPs has been agreed between the government and the British Medical Association (BMA). Proposed reforms that were accepted by the BMA include an overall funding uplift of £889 million for the 2025/26 GMS contract.
| 12-03-2025
The Future of Roads Minister, Lillian Greenwood, has confirmed that the plug-in van grant will be extended for another year. The plug-in grant means that businesses can obtain grants of up to £2,500 when buying an
| 12-03-2025
The Public Procurement Act 2023, originally set for implementation on 28 October 2024, has now officially come into force. This legislation introduces new rules designed to make it easier for smaller businesses to
| 12-03-2025
News reported last week said that the Chancellor has put together draft plans for spending cuts to welfare and other government departments. At the time of the 2024 Autumn Budget, the Office for Budget Responsibility
| 26-02-2025
Inflation figures for January 2025 were released last week and showed a surprising jump to 3.0%, up from 2.5% in December. The Office for National Statistics (ONS)
| 26-02-2025
Latest figures released by the Office for National Statistics (ONS) show that average wages are continuing to grow faster than inflation. After adjusting for consumer price inflation (CPI), wages rose 3.4% between October
| 26-02-2025
Beginning last week (17 February), Local Authorities were able to begin awarding a 40% reduction in business rates bills to film studios. The tax relief is aimed at boosting the film industry in the UK and contributing
| 18-02-2025
Following the reduction in the Bank of England base rate, HM Revenue & Customs (HMRC) have confirmed that their interest rates will be reduced accordingly. Late payment interest will reduce to 7% from 7.25%.
| 18-02-2025
The UK government is consulting on changes that will require private landlords in England and Wales to meet higher energy performance ratings by 2030. Currently, 48% of all private rented homes have an Energy
| 18-02-2025
The government announced major plans last week to modernise the house buying and selling process. The reforms centre on digitalising and making property and identity data available electronically. This will allow
| 11-02-2025
Legislation was laid before Parliament last week confirming that the new National Living Wage and new Minimum Wage rates will take effect from 1 April 2025. While many businesses are feeling and have expressed
| 11-02-2025
The Charity Commission has issued a warning reminder to large, incorporated charities about changes to the law on preventing fraud. A new failure to prevent fraud offence will come into force on 1 September 2025 for
| 11-02-2025
HM Revenue and Customs (HMRC) have revealed that 37,000 people have plugged gaps in their National Insurance (NI) record since last April, boosting the amount of State Pension they will receive when they reach
| 11-02-2025
The Bank of England reduced their base rate to 4.5% last week, as had been widely expected in the days leading up to the decision. The decision was made by a 7-2 majority. The minority of two members were looking for
| 04-02-2025
The Prime Minister and Chancellor met with business leaders last week and unveiled proposals to give occupational defined
| 04-02-2025
The new economic secretary to the Treasury, Emma Reynolds, has said that there are no plans to regulate businesses, whether big or small, to compel them to accept cash.
| 04-02-2025
The annual self-assessment tax return deadline has just passed, and for many business owners,
| 28-01-2025
There are only a few days left now to file 2023-24 tax returns before the 31 January deadline. Failing to meet the deadline can result in penalties as well as interest on tax that’s paid late.
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A new deal for GPs has been agreed between the government and the British Medical Association (BMA).
Proposed reforms that were accepted by the BMA include an overall funding uplift of £889 million for the 2025/26 GMS contract. This represents a 7.2% boost to the contract, which is higher than the increase to the NHS budget as a whole. However, the BMA’s acceptance of the funding uplift was given on the proviso that the government commits to renegotiating a completely new national contract within this parliament. They are looking for confirmation of this in writing by mid March 2025.
The increase includes:
- Almost £800 million national funding into the ‘Global Sum’ to help cover the rising costs of staff, premises and patient list growth.
- The Primary Care Network rules will be relaxed, allowing individual practices to decide which roles to hire using their additional staff budgets rather than having this decided centrally.
- An increase to routine childhood vaccination fees.
In addition to the £889 million uplift, there will also be an £80 million investment for a new Enhanced Service that compensates GPs for advice and guidance requests when unsure about making a referral to hospital. This funding will allow doctors to liaise with specialist consultants and help to avoid people being added to waiting lists unnecessarily.
The BMA sees the new contract as an important first step for GPs as they aim to address underfunding over the next few years.
See:
https://www.bma.org.uk/bma-media-centre/bma-accepts-202526-contract-for-gps-in-england-as-a-starting-pointThe Future of Roads Minister, Lillian Greenwood, has confirmed that the plug-in van grant will be extended for another year.
The plug-in grant means that businesses can obtain grants of up to £2,500 when buying an eligible small van up to 2.5 tonnes and up to £5,000 for an eligible larger van up to 4.25 tonnes.
The grant is made available through the dealer or manufacturer as a discount on the purchase price when the van is purchased. So, there is no need for each purchaser having to go through a grant application themselves.
The government is also removing the requirement for additional training that is currently required for zero emission vans but not petrol or diesel ones.
Zero emission vehicles also carry some attractive tax advantages. If you are looking at replacing vehicles and would like help to know what the end costs are for you, please get in touch. We would be happy to help you!
See: https://www.gov.uk/government/news/120-million-to-roll-out-more-electric-vans-taxis-and-motorbikes
The Public Procurement Act 2023, originally set for implementation on 28 October 2024, has now officially come into force. This legislation introduces new rules designed to make it easier for smaller businesses to compete for and win public sector contracts.
Key changes under the Act
The Act establishes clear rules that all public bodies must follow when buying goods and services. One of the most significant updates is the introduction of a Central Digital Platform. This is now available and allows businesses to register their details and access all potential bidding opportunities in one place.
An end to late payments
A particularly welcome change is the introduction of a mandate of 30-day terms for all public sector contracts. This measure is expected to improve cash flow for smaller businesses, which often struggle with delayed payments.
Cabinet Office Minister Georgia Gould highlighted the benefits of the new legislation, stating that the new Procurement Act will “tear down barriers that stop small businesses from winning government work, giving them greater opportunity to access the £400 billion spent on public procurement every year.”
New powers to deal with poor suppliers
The Act also introduces new powers to investigate and take action against poorly performing suppliers or those that pose security risks to supply chains. The Procurement Review Unit (PRU) and National Security Unit for Procurement (NSUP) will oversee these investigations. Underperforming suppliers could face exclusion from future contracts or even debarment.
A boost for small businesses
Public sector spending is significant, and this legislation marks a significant step towards creating more opportunities for smaller businesses. By reducing bureaucratic hurdles, ensuring fairer payment terms, and increasing transparency, the Act provides SMEs with a greater chance to secure valuable government contracts.
For small business owners, now is the time to explore these new opportunities and take advantage of the changes aimed at levelling the playing field in public procurement.
See: https://www.gov.uk/government/news/new-public-procurement-rules-to-drive-growth-opportunities-for-small-businesses-and-exclude-suppliers-that-fail-to-deliver
News reported last week said that the Chancellor has put together draft plans for spending cuts to welfare and other government departments.
At the time of the 2024 Autumn Budget, the Office for Budget Responsibility (OBR) said that there was a £9.9 billion buffer available against the Chancellor’s own self-imposed borrowing rules.
However, the OBR’s spring forecast seems likely to show that this buffer has disappeared due to the events of the last few months, including trade tariffs, the war in Ukraine and higher inflation and borrowing costs.
It could be argued that an alternative strategy would be for the Chancellor to amend her borrowing rules. However, to do so would risk losing credibility with the financial markets and the Chancellor has described her rules as “non-negotiable.” So, it seems that spending cuts are now likely, mainly to welfare payments.
How could welfare cuts affect my business?
Such cuts are likely to have ripple effects on small businesses, impacting both their customers and employees. Here are some key ways that these cuts could affect your business:
- Reduced consumer spending: If welfare payments are reduced, lower-income households will have less disposable income, leading to decreased sales for businesses that depend on everyday spending, such as shops, cafes, and tradespeople. It can also lead to less demand for non-essential goods and services, such as entertainment, beauty treatments, and leisure activities.
- Workforce challenges: Employees who may also rely on welfare support, such as Universal Credit top-ups or childcare subsidies, could be affected by cuts. This could lead to increased financial strain for them that leads to reduced productivity, higher stress levels, and even absenteeism. It may also mean difficulties in retaining staff if they seek higher wages elsewhere or struggle to afford travel and childcare costs.
- Higher pressure on business owners: Less support may be available for self-employed individuals who rely on welfare payments during periods of fluctuating income. There may also be increased pressure to raise wages for affected employees, potentially squeezing already tight margins.
- Local economy knock-ons: Local economies shrink when people have less money to spend. For businesses that rely on strong community support, particularly in areas with high welfare dependency, this can present challenges.
- Impact on Business-to-Business (B2B) services: If welfare cuts lead to a slowdown in consumer spending, other small businesses that provide services to local companies (such as marketing, IT, and consulting) could also suffer as their clients tighten budgets.
What can you do?
Some basic steps you could consider include:
- Diversifying your customer base to reduce reliance on low-income consumers.
- Explore alternative revenue streams, such as online sales or subscriptions.
- Support employees through flexible working arrangements or other benefits to help offset financial strain.
While government decisions on welfare are often made with national budgets in mind, businesses are often on the front line of these changes. While this can create uncertainty, with the right planning and business strategy, you can take proactive steps to protect and even strengthen your business during challenging times.
Staying ahead of economic shifts is key to long-term success. If you’d like expert guidance on how to navigate the impact of welfare spending cuts on your business, get in touch with us today. We’d be happy to help you!
See: https://www.bbc.co.uk/news/articles/c1lpjqg2mp5o
Inflation figures for January 2025 were released last week and showed a surprising jump to 3.0%, up from 2.5% in December.
The Office for National Statistics (ONS) reported that the largest upward contribution to the change came from transport, and food and non-alcoholic beverages.
The upward pressure in transport costs came from air fares and motor fuels. Traditionally air fares increase in December before falling in January, however January 2025 saw the smallest January fall since January 2020.
Many businesses are feeling the pinch of increasing costs and news that inflation is rising may not be good news. Some economists believe that the rise will not affect the Bank of England’s plans for the interest base rate – the Bank has already forecast that inflation will increase to 3.7% later this year. However, regardless of this, inflation can squeeze profit margins and put a strain on cash flow.
However, inflation doesn’t have to derail your business. Read on to see how with the right strategies you can mitigate the impact and even uncover new opportunities. Here are some key steps you can take to navigate inflationary pressures.
Review pricing regularly
During periods of rising inflation, it’s essential to review your pricing strategy. Ensure that your prices are reflecting the increased costs of goods and services.
This can be easier said than done because of not wanting to upset your customers. So, one strategy could be to look at smaller, incremental increases rather than implementing one large hike.
Also, be transparent about the reasons behind any changes – many customers understand inflationary pressure and appreciate it when they are clearly communicated with.
Focus on efficiency
Look for areas within your business where you can improve efficiency. Perhaps you have opportunities to eliminate areas of wastage, or there are processes that could be automated, or you might be able to renegotiate contracts with your suppliers.
As an example, switching to digital invoicing or using cloud-based software may reduce your administrative costs. Small wins can be worthwhile as each small saving adds up over time.
Manage cash flow prudently
When inflation is on the rise, managing healthy cash flow is crucial. Monitor your cash inflows and outflows regularly, and identify any areas of concern.
If your business uses credit, try to lock in interest rates to protect yourself against potential rate hikes. You might also want to consider offering early payment discounts to customers to improve cash flow.
Adjust your stock strategy
If inflation is pushing up prices, holding too much stock may be tying up cash in goods that become more expensive to store. However, stocking up on items that are likely to increase in price could save you money in the long term.
Review your stock levels on a regular basis and this will help you to strike a balance that protects your margins.
Revisit your value proposition
Inflation is likely to be putting pressure on your customers too. Therefore, it’s essential that you are able to highlight the unique value that your business is providing them.
Focus on quality, reliability, or customer service so that you can show that you are different to your customers. When you offer something to your customers that they can’t get elsewhere, they may be more willing to accept price adjustments.
Monitor market trends
Stay informed about broader market trends and how inflation is impacting the industry sector that your business is part of. By keeping an eye on your competitors and the behaviour of your customers, you will be able to adapt your strategy to stay competitive.
Being proactive rather than reactive in seeking knowledge can make all the difference.
Plan for the long term
Inflation often runs in cycles, so it’s important to continue to think beyond the immediate challenges you may be facing. Developing contingency plans and building financial buffers can help you to prepare for future economic shifts.
Businesses that plan ahead are more likely to emerge stronger once inflation subsides.
Final thoughts
While inflation can present some significant challenges, it also offers you an opportunity to review the way your business runs and make strategic improvements to it.
By focusing on pricing, efficiency, cash flow and customer value, you can build resilience and position your business for long-term success. Stay agile, be transparent and adapt to ongoing change – your business will be better for it.
If you need help with reviewing your business processes, cash flow or pricing, why not give us a call and see how we can help you?
Latest figures released by the Office for National Statistics (ONS) show that average wages are continuing to grow faster than inflation. After adjusting for consumer price inflation (CPI), wages rose 3.4% between October and December 2024 when compared with the same period in 2023.
Unemployment figures also appear to be encouraging, with the UK’s unemployment rate remaining at 4.4%. However, the ONS has cautioned that the response rate to its survey was low. So, these figures may not reflect the true position.
What will happen over coming months?
With the upcoming increases to national minimum wage and employers national insurance, it seems likely that pay growth will reduce over coming months. Many businesses are reporting that they plan to reduce their workforce due to the increased costs.
Increasing wages can also affect the Bank of England’s decision when they set the base rate. When wages grow this means more disposable income in the economy which tends to increase demand and therefore prices. These figures may therefore make the Bank cautious of making another rate cut too soon.
If you need help with budgeting increased wage costs from April, or to look at how your pricing could be adjusted to cover the increases, please get in touch. We would be happy to help you negotiate these changes so that your business continues to grow and thrive.
See: https://www.bbc.co.uk/news/articles/c4gwgpjgl5zo
Beginning last week (17 February), Local Authorities were able to begin awarding a 40% reduction in business rates bills to film studios. The tax relief is aimed at boosting the film industry in the UK and contributing towards more box office hits being made.
The creative industries sector employs 2.4 million people and provides £124.6 billion to the UK economy. The government hopes to boost both these figures by providing the relief. The Film Studio Business Rates Relief will be available to eligible studios in England until 2034. Where applicable, it can be backdated to 1 April 2024.
Eligible film studios should not need to apply for the relief, but should be awarded it automatically by their Local Authority.
This is one of several reliefs available or becoming available to the film and TV sector in the UK. Already available is the Audio-Visual Expenditure Credit (AVEC) that provides a tax credit of 34% on UK production costs on a film or high-end TV programme, increasing to 39% on the production costs for an animation or children’s TV programme.
From 1 April 2025, film and high-end TV companies will be able to claim a 39% credit on their UK visual effects costs. Also, the Independent Film Tax Credit will become available. This is for eligible films that have a budget of less than £15 million and will allow for claiming an enhanced 53% rate.
The film and TV industry is seen as significant contributor to the UK economy with the potential for further growth.
If you need help with understanding what tax reliefs are available for your film or TV production, please give us a call at any time. We would be happy to help you maximise the reliefs available to you.
See: https://www.gov.uk/government/news/lights-camera-action-40-business-rates-relief-for-film-studios-rolled-out
Following the reduction in the Bank of England base rate, HM Revenue & Customs (HMRC) have confirmed that their interest rates will be reduced accordingly.
Late payment interest will reduce to 7% from 7.25%. Repayment interest – paid on tax repayments – will be reduced to 3.5%.
The change will come into effect from:
- 17 February 2025 for quarterly instalment payments.
- 25 February 2025 for non-quarterly instalments payments.
See: https://www.gov.uk/government/news/hmrc-late-payment-interest-rates-to-be-revised-after-bank-of-england-lowers-base-rate–2
The UK government is consulting on changes that will require private landlords in England and Wales to meet higher energy performance ratings by 2030.
Currently, 48% of all private rented homes have an Energy Performance Certificate (EPC) of C or above. However, under new plans the government is proposing that by 2030 all privately let properties will need to meet a minimum EPC C. Currently the minimum level required is EPC E.
The government estimates the average cost to landlords to comply with the proposals by 2030 would be between £6,100 and £6,800.
The consultation is looking for views from landlords and tenants on the proposals, including:
- Whether landlords should be required to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving onto other options including batteries, solar panels and smart meters.
- A maximum cap of £15,000 per property for landlords, with support schemes such as the Boiler Upgrade Scheme and Warm Homes: Local Grant.
- An affordability exemption that lowers the cost cap to £10,000.
- All landlords being required to meet the new standard by 2030 at the latest.
The consultation closes on 2 May 2025. If you are a landlord and wish to take part, the details can be found here.
In view of the potential costs involved, landlords will be following these proposals with interest.
See: https://www.gov.uk/government/news/warm-homes-and-cheaper-bills-as-government-accelerates-plan-for-change
The government recently announced major plans to modernise the house buying and selling process. The reforms centre on digitalising and making property and identity data available electronically. This will allow mortgage companies and surveyors to have information within easy reach.
It is thought that these changes will help to avoid surprises being encountered late in the process, with the waste of time and money that goes with that.
In Norway, property transactions complete in around one month and the reforms take account of learning about how this has been achieved.
HM Land Registry (HMLR) is involved in the changes and the next step is a 12-week project to identify the design and implementation of agreed rules so that the data can be easily shared. HMLR will also be working with councils over coming months on how to open up more of their data and make it digital.
For estate agents and surveyors these reforms could make a big difference to the amount of time and money lost in sales falling through.
See: https://www.gov.uk/government/news/home-buying-and-selling-to-become-quicker-and-cheaper
Legislation was laid before Parliament last week confirming that the new National Living Wage and new Minimum Wage rates will take effect from 1 April 2025. While many businesses are feeling and have expressed concern about the increases, the sight of the legislation suggests that no reprieve is in sight.
As a reminder, the National Living Wage will increase to £12.21 from 1 April. This is a 6.7% increase and will be worth £1,400 a year to an eligible full-time worker.
The National Minimum Wage for 18-20 year olds will increase to £10.00 an hour. For an eligible full-time worker, this will work out to an extra £2,500 a year.
An impact assessment published on the same day the legislation was laid indicates that these increases will put around £1.8 billion into the pockets of workers over the next six years.
While these measures will benefit many workers, you may be concerned about the anticipated cost of this increase causing problems for your business.
If you need help costing out what the increases will cost you and advice on the potential strategies you have to manage these costs, please get in touch and we would be happy to help you!
See: https://www.gov.uk/government/news/april-pay-rise-set-to-boost-pockets-of-over-3-million-workers
The Charity Commission has issued a warning reminder to large, incorporated charities about changes to the law on preventing fraud. A new failure to prevent fraud offence will come into force on 1 September 2025 for all large organisations, including charities.
Who does this apply to?
This new offence is introduced by the Economic Crime and Corporate Transparency Act 2023 and will affect large, incorporated charities that meet two of the following three criteria:
- More than 250 employees.
- More than £36m of income.
- More than £18m in total assets.
What is the change?
Where an employee, agent, subsidiary, or other “associated person”, commits fraud that intends to benefit the organisation (or its clients) and the organisation did not have reasonable fraud measures in place, the organisation may be criminally liable under the new law.
Guidance has been published on the new offence, which can be read here. This guidance has been published by the Home Office after consulting with the Scottish Government and Department of Justice in Northern Ireland.
If you would like any help with reviewing your approach to fraud prevention, please get in touch. We would be happy to help you!
See: https://www.gov.uk/government/news/failure-to-prevent-fraud-offence-regulatory-alert
HM Revenue and Customs (HMRC) have revealed that 37,000 people have plugged gaps in their National Insurance (NI) record since last April, boosting the amount of State Pension they will receive when they reach retirement age.
The amount of State Pension you will receive is based on how many completed years you have in your NI record. Currently it is possible to review your record going back to 2006, and where there is a gap, you can contribute to plug the gap and ensure that you maximise the amount of State Pension that will be available to you.
There is limited time to be able to do this though. From 6 April 2025, you will only be able to make voluntary NI contributions for the previous 6 tax years. This means there is now less than two months left to be able to plug any gaps that go back to 2006.
HMRC have an online service that allows you to check and view any gaps in your NI record, calculate the difference any payment will make to your State Pension and then make a payment for the years you would like to top up.
If you would like any help in finding out whether you have any missing years and how much benefit you could get from a top up, please contact us and we would be happy to help you!
See: https://www.gov.uk/government/news/35-million-added-to-state-pension-pots
The Bank of England reduced their base rate to 4.5% last week, as had been widely expected in the days leading up to the decision. The decision was made by a 7-2 majority. The minority of two members were looking for the rate to be reduced to 4.25%.
In announcing their decision, the Monetary Policy Committee (MPC) outlined their thoughts on the economy. Here are some highlights.
Inflation forecasts
The Consumer Price Index (CPI) was 2.5% for the last quarter of 2024. The Bank expects CPI inflation to increase to 3.7% by autumn 2025 due to higher global energy costs and regulated price changes.
However, the MPC also feel that pressures on inflation at a domestic level are moderating and will wane further as 2025 progresses. So, they expect CPI inflation to fall back to 2% from the end of 2025.
Growth forecasts
The Bank expects GDP growth to pick up from the middle of this year. They believe that the economy’s ability to produce goods and services has grown more slowly than previously estimated. So, while they’ve noted a slowdown in demand, they judge that only a small amount of unused capacity has been created in the economy.
These and other factors led the MPC to reduce the rate to 4.5%.
Will there be future rate cuts?
Looking forward to future potential rate cuts, the MPC has said “a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.” They stressed that there are ongoing uncertainties around demand and supply in the economy.
The MPC also highlighted the global economic uncertainty and a pickup in financial market volatility due to the recent announcements in the US on trade tariffs and subsequent retaliatory measures. This is something they continue to monitor.
To review the Monetary Policy Summary in full, see: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/february-2025
The Prime Minister and Chancellor met with business leaders last week and unveiled proposals to give occupational defined pension schemes more flexibility.
Restrictions will be lifted on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds. It is hoped that this will pave the way for future growth across the economy.
Currently, around 75% of such pension schemes are in surplus amounting to £160 billion. However, restrictions have meant that businesses have found it difficult to invest these funds, even when both trustees and sponsors want to do so.
The proposals will allow trustees, if they agree, to share a portion of the scheme surplus with a sponsoring employer. The employer can then choose to invest the funds in its core business and/or provide additional benefits to members of the pension scheme.
Jonathan Lipkin, Director of Policy, Strategy & Innovation at the Investment Association said: “With the right guardrails in place, the government’s proposals could help channel more funding into the economy, by enabling schemes to invest more widely and take on greater risk, while allowing for members to receive an uplift to pension benefits.”
See: https://www.gov.uk/government/news/pension-reforms-to-go-further-to-unlock-billions-to-drive-growth-and-boost-working-peoples-pension-pots
The new economic secretary to the Treasury, Emma Reynolds, has said that there are no plans to regulate businesses, whether big or small, to compel them to accept cash.
Concern has been raised about various shops and service firms not accepting cash and therefore excluding those who rely on cash to pay for things. While some countries appear to be planning to put rules in place that require essential services to accept cash, the UK does not seem as though it will be following suit.
Cards have been used for many years in the UK, with mobile payments by smartphone now becoming increasingly popular. 72% of 16-24 year olds now regularly use mobile payment services. This increase is reflected across all age groups, with 27% of those aged 45-54 now also regularly using this method.
However, cash still remains a popular choice for making payments. Cash was used in a fifth of shop transactions last year. After decades where use of cash has been shrinking, this is the second year in a row where cash use in shops has increased. It seems that many find that using cash helps them to budget better.
Should you accept cash?
The answer to this question really depends on who your customers are. If your customers are largely older or more value conscious, then it seems that these types of customers are more likely to rely on paying with cash. If you don’t accept cash, you may risk losing sales.
On the other hand, if you mainly sell to younger, more digital savvy customers, not accepting cash may have little effect on sales. This may help you save the costs and security issues involved in handling cash.
See: https://www.bbc.co.uk/news/articles/c20gevkx8gyo
The annual self-assessment tax return deadline has just passed, and for many business owners, the experience may have been a mad scramble to gather documents, double-check figures, and submit their returns and pay the tax on time.
If that was your situation, you were in good company! HM Revenue and Customs said that 3.4 million taxpayers, almost a third, hadn’t submitted their tax return yet going into the final week before the deadline.
The stress of last-minute filing may have made you determined to get it all done earlier this year. The good news is that with proactive planning, next year’s tax return can be a much smoother process.
Here are some practical steps you can take now to avoid a last-minute rush and enjoy a more relaxed 2025.
- Review and reflect on this year’s process
Start by evaluating what worked well and what didn’t during this year’s filing. Did you struggle to locate receipts or invoices? Were you unclear about certain tax rules? Taking stock of these challenges now allows you to address them early. Make a list of improvements to implement, such as better record-keeping or seeking professional advice.
- Organise financial records regularly
Committing to updating your financial records on a regular basis can really help to eliminate last-minute stress. This could involve:
- Digitising receipts and invoices: There are apps and software you can use to scan and store receipts as they come in. Many programs will even categorise expenses automatically, saving you time later.
- Reconciling accounts monthly: Regular reconciliation ensures that your bank statements and your financial records match up. This can really help you to avoid missing something out.
- Maintaining a tax file: You could create a dedicated file (digital or physical) to store documents like business expenses, income records, and correspondence with HMRC. That way everything can easily be found when you need it.
- Use accounting software
Investing in reliable accounting software can simplify your tax preparation work significantly. Many modern tools will integrate directly with your bank accounts and track your income and expenses. Popular options include Xero, Sage and QuickBooks.
- Understand tax allowances and deductions
Tax rules can change annually, so it helps to stay informed and up to date. Try to familiarise yourself with the allowable expenses, reliefs, and deductions that are relevant to your business. For example, you may be able to claim for home office expenses, equipment, or professional services.
- Set up a tax savings account
Noone likes paying tax at the best of times, but a large, unexpected bill can cause a lot of financial strain. To avoid that, you could set aside money regularly for your tax. For instance, you could open a dedicated savings account and deposit a percentage of the income received each month.
- Plan ahead with a tax calendar
Many find it useful to create a tax calendar that highlights the key dates and deadlines that apply to them. Setting reminders well in advance can help to give you more time to prepare and avoid penalties.
These proactive measures can help you turn filing your tax return from a stressful ordeal into a manageable task. By starting early, staying organised, and making good use of technology you’ll save time, reduce stress and allow yourself to focus on growing your business.
If you would like any personalised advice on how to keep your tax records or advice and training on using accounting software, please give us a call and we would be happy to help you!
There are only a few days left now to file 2023-24 tax returns before the 31 January deadline. Failing to meet the deadline can result in penalties as well as interest on tax that’s paid late.
If you are self-employed and usually complete your own tax return, you may find that the 2023/24 tax return requires you to complete extra entries due to basis period reform. There may also be additional tax to pay as a result.
If you need any help with your tax return, please do not hesitate to get in touch and we will be happy to help you.
