Tax Deadlines in 2025

Tax deadlines

Up and Coming Tax Deadlines in 2025.

Tax season can be overwhelming, especially with so many important dates to remember. Knowing the key tax deadlines for 2025 will help individuals and businesses plan their finances effectively. By staying organised and informed, taxpayers can avoid unnecessary penalties and ensure compliance with all financial obligations.

As the new year approaches, it becomes crucial for taxpayers to review their financial planning strategies. Understanding when payments and returns are due can aid in efficient budgeting and may even allow for better tax outcomes. Those who prepare ahead often find themselves less stressed and more in control of their financial situations.

For anyone seeking clarity on the upcoming tax dates in the UK for 2025, this article will provide essential insights that facilitate better preparation. Readers will learn valuable information to navigate the tax landscape confidently.

Key Takeaways

  • Key tax deadlines for 2025 are vital for financial planning.
  • Early preparation can minimise stress during tax season.
  • Staying informed helps ensure compliance and avoid penalties.

Key Tax Deadlines for the 2025/26 Financial Year

Staying informed about key tax deadlines for the 2025/26 financial year is crucial for effective financial planning. This section covers important dates for self-assessment, VAT, corporation tax, and National Insurance and PAYE.

Self-Assessment Deadlines

For those who need to file a self-assessment tax return, the deadline for submitting online returns is midnight on 31 January. This date is essential for individuals who are self-employed or have other sources of income.

It is important to remember that failure to meet these deadlines may lead to penalties. Late submissions could result in a fine of £100, with additional charges if submissions are considerably delayed.

Taxpayers should also ensure that they pay any tax owed by 31 January to avoid late payment penalties. It is advisable to keep financial records well-organised and start preparations early in the year.

Value Added Tax (VAT) Deadlines

Businesses registered for VAT must adhere to strict deadlines for filing and paying their VAT returns. The frequency of these returns often depends on the size of the business and the VAT scheme used.

The annual VAT return must be submitted and paid by 31 January for those on a yearly scheme. Keeping accurate sales and purchase records throughout the year can help ensure timely and accurate submissions.

Corporation Tax Deadlines

For companies paying corporation tax, the accounting period determines the deadlines. Typically, a company must file its corporation tax return within 12 months after the end of the accounting period.

Payment of the corporation tax owed is generally required within nine months of the end of the accounting period. For many companies, this means they need to pay by 31 December 2025 for profits made in the year ending on 31 March 2025.

Late payment can incur interest and penalties, so companies should keep track of their profits throughout the year and prepare for tax liabilities in advance.

National Insurance and PAYE Deadlines

Employers must manage their National Insurance contributions and PAYE (Pay As You Earn) deadlines effectively. Employers must submit PAYE information to HMRC on or before each payday.

The deadline for annual PAYE reporting is typically 19 April following the end of the tax year. For 2025/26, this means that the annual report must be submitted by 19 April 2026.

It’s important for employers to ensure that all payroll information is accurate and submitted on time. Ensuring compliance with these deadlines can help avoid penalties and ensure smooth operations.

Planning Ahead for Taxation

Effective tax planning is essential to manage finances and make informed decisions. Understanding tax reliefs, pension contributions, and payments on account can optimise a taxpayer’s situation and reduce liabilities.

Tax Relief and Allowances

Tax reliefs and allowances play a crucial role in reducing taxable income. Individuals need to be aware of available options like the Personal Allowance, which allows earners a certain amount before income tax applies. As of the 2025 tax year, the standard Personal Allowance remains £12,570.

Additionally, reliefs exist for specific expenses. For example, taxpayers can claim relief on business expenses, charitable donations, and marriage allowances. It’s important to maintain accurate records of eligible expenses throughout the year.

Key Tax Reliefs:

  • Personal Allowance
  • Marriage Allowance
  • Gift Aid Donations

When planning, individuals should evaluate which reliefs they can claim to ensure they’re reducing their taxable income effectively.

Pension Contributions and Inheritance Tax

Pension contributions not only assist with retirement planning but also provide tax benefits. Contributions to a pension scheme are eligible for tax relief, encouraging individuals to save.

Inheritance tax (IHT) is another vital aspect to consider. The current threshold is £325,000. Estates valued above this may be subject to a 40% tax. Individuals can take steps like making gifts or setting up trusts to mitigate IHT liability.

Pension Benefits:

  • Tax relief on contributions
  • Growth free from capital gains tax

Being aware of these strategies allows individuals to plan their finances in a more tax-efficient manner.

Payments on Account

Payments on account enable taxpayers to manage their tax bills effectively by spreading payments throughout the year. These are advance payments towards the next year’s income tax. They apply to those who owe more than £1,000 in tax, helping to avoid financial strain.

The system involves two payments, typically due by 31 January and 31 July. Each payment is based on the previous year’s tax bill and is half of the total due.

Payment Schedule:

  • First Payment: Due by 31 January
  • Second Payment: Due by 31 July

Taxpayers should monitor their taxable income closely and use their tax returns to anticipate payments on account. Proper planning can help manage cash flow and avoid larger bills.

Frequently Asked Questions

This section addresses key questions about the important tax dates and regulations for the upcoming 2024/25 UK fiscal year. Readers can find out crucial deadlines and how new regulations may impact their tax filing.

What are the important tax deadlines for the 2024/25 UK fiscal year?

The main deadlines include 31 January 2025 for online Self Assessment tax returns and 31 July 2025 for the second payment on account. Additionally, businesses need to be aware of the VAT return submission dates.

When does the 2024/25 UK tax year commence?

The 2024/25 UK tax year starts on 6 April 2024. This date marks the beginning of the annual tax cycle for individuals and businesses.

What is the deadline for submitting the Self Assessment tax return for the 2024/25 tax year?

The deadline for submitting the Self Assessment tax return for the 2024/25 tax year is 31 January 2026. It is crucial to file on time to avoid penalties.

How do the new tax regulations in the UK for 2025 affect filing?

New regulations set to take effect in 2025 may change how individuals and businesses report their income. Taxpayers should stay informed about any adjustments that could impact their tax obligations.

When must taxes be filed for the 2024 fiscal year in the UK?

All taxes for the 2024 fiscal year must be filed by 31 January 2025 for Self Assessment tax returns. Businesses must also adhere to specific deadlines for corporate taxes and VAT.

What are the closing dates for the UK tax year ending in 2025?

The UK tax year will close on 5 April 2025. Any income earned before this date must be reported in the 2024/25 tax return.

Do You Have a Business Plan for 2025?

Business Plan

Business plan and coaching for 2025.

Many business owners may overlook the importance of a solid business plan for the upcoming year. Having a clear business plan for 2025 can set the foundation for success and help navigate challenges. By engaging in twelve-month planning and quarterly coaching sessions, Swan Saunders can offer the guidance needed to make informed decisions and optimise business performance.

Effective planning and regular check-ins facilitate accountability and keep strategies aligned with long-term goals. These sessions provide valuable insights, allowing businesses to adapt quickly to any changes in the market. Investing in a structured approach to business planning can lead to sustainable growth and improved results.

With the right support and resources, 2025 can be a transformative year for any organisation. Taking action now can create a competitive edge and ensure every step taken is meaningful and strategic.

Key Takeaways

  • A clear business plan is essential for success in 2025.
  • Quarterly coaching sessions enhance performance tracking and accountability.
  • Invest in planning to adapt to market changes efficiently.

Strategic Business Planning for 2025

In 2025, effective strategic business planning is essential for navigating a competitive landscape. Key actions include assessing the external environment, setting clear and achievable objectives, and developing a strong marketing strategy to engage customers.

Assessing Your Business Landscape

Understanding the current market conditions is vital for any business. This involves analysing industry trends, competitor behaviour, and customer preferences.

Key steps include:

  • Market Research: Conduct surveys or focus groups to gather insights on customer needs.
  • SWOT Analysis: Identify Strengths, Weaknesses, Opportunities, and Threats to clarify the business’s position.

Keeping abreast of economic indicators and policy changes is also crucial. This knowledge helps businesses adapt strategies and take advantage of potential growth areas. A well-informed assessment provides a solid foundation for future planning.

Setting Achievable Goals

Goals should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. These criteria ensure that targets are clear and realistic.

Examples of goals include:

  • Sales Targets: Increase sales by 15% by the end of Q4.
  • Customer Engagement: Boost social media followers by 30% in 12 months.

Regularly reviewing these goals allows businesses to stay on track and make necessary adjustments. Aligning team efforts with these targets fosters accountability and boosts motivation.

Developing a Robust Marketing Strategy

A comprehensive marketing strategy is needed to reach and retain customers effectively. This involves defining target audiences, creating compelling messages, and selecting the right channels.

Consider these elements:

  • Digital Marketing: Utilise social media, email campaigns, and SEO to enhance online presence.
  • Content Creation: Regularly produce valuable content to engage visitors and position the brand as an authority.

Evaluation is crucial. Businesses should track performance metrics like conversion rates and return on investment. This approach allows for continuous improvement and adaptation to changing market dynamics.

Quarterly Coaching and Performance Tracking

Quarterly coaching plays a crucial role in ensuring continuous progress within a business. It helps identify areas for improvement while also establishing a clear framework for measuring success. The focus is on developing actionable strategies that lead to tangible results over time.

Continual Improvement Through Coaching

Quarterly coaching sessions provide businesses with the opportunity to assess their current strategies and explore new approaches. These sessions often involve discussions on challenges faced, progress made, and adjustments needed to stay on track. By fostering a culture of open communication, coaching encourages individuals to share insights and ideas.

Coaching focuses on developing specific skills and knowledge, which can enhance overall business performance. This approach not only empowers team members but also aligns their efforts with the company’s goals. Regular check-ins during these sessions allow businesses to adapt quickly to any changes in their environment or objectives.

Measuring Success and Key Performance Indicators

Establishing key performance indicators (KPIs) is vital for tracking progress in any business. Quarterly coaching emphasises the importance of defining measurable targets that align with long-term objectives. This process ensures that everyone understands what success looks like for their specific roles.

KPIs can include metrics such as sales growth, customer satisfaction, and efficiency rates. Regularly reviewing these indicators allows businesses to celebrate achievements and identify areas needing improvement. It becomes easier to adjust strategies based on data-driven insights, leading to better decision-making.

Creating a clear set of KPIs makes it easier for teams to stay accountable. This kind of structured performance tracking is essential for continuous growth and success. Ultimately, it helps businesses reach their goals and fulfil their strategic vision effectively.

Frequently Asked Questions

This section addresses common queries about developing a business plan for 2025. It covers essential components, alignment with long-term goals, integration of coaching, structure for growth, updating practices, and measuring success.

What are the essential components of a one-year business plan?

A one-year business plan should include an overview of the business, goals, and objectives. It must detail strategies for achieving these goals, along with financial projections. Also important are market analysis and an outline of the target audience.

In what ways can I ensure my annual business plan aligns with long-term strategic goals?

To align the annual plan with long-term goals, it is critical to establish clear objectives that support the broader vision. Regular reviews of the plan with a business coach can help to make necessary adjustments.

What strategies are recommended for integrating quarterly coaching into a business plan?

Quarterly coaching sessions should be built into the business plan as regular checkpoints. Setting specific goals for these sessions ensures accountability. Encouraging feedback and adjusting strategies based on insights gained during coaching enhances overall effectiveness.

How should a business plan be structured to reflect a 12-month growth strategy?

A 12-month growth strategy should outline specific milestones and timelines for achieving each goal. This includes clear metrics for success and the resources necessary for implementation. Dividing the plan into quarterly segments aids in tracking progress. This is where solid business coaching helps to acheive all the elements of the business plan.

What are the best practices for updating a business plan on a quarterly basis?

Best practices for updating a plan include conducting a thorough review of performance against goals. Adjusting strategies based on market conditions and feedback ensures the plan remains relevant.

How can a business effectively measure the success of its annual plan?

To measure success, a business should establish key performance indicators (KPIs) aligned with its goals. Regularly assessing these KPIs allows for timely adjustments. Gathering customer and employee feedback can also provide valuable insights into success levels.

We work with many business owners creating smart, acheivable 12 month business plans delivering quertarly coaching sessions to track progress. Want to know more? Contact us to book a 20 minuite zoom call to find out more.

6 reasons why you need an accountant for your limited company

Limited company

Do I Need an Accountant to Help with My Limited Company?

Running a limited company comes with a variety of responsibilities and complexities. One might wonder if hiring an accountant is necessary to manage these tasks efficiently. While it is not legally required to have an accountant for a limited company in the UK, their expertise can be invaluable in handling financial matters.

An accountant can offer numerous advantages, such as managing bookkeeping, preparing tax returns, and running payroll. This allows business owners to focus on their core products and services. Moreover, as the business grows, the need for professional financial management becomes even more significant to ensure compliance and optimal financial health.

Although some entrepreneurs manage without one, the benefits of having a professional accountant can outweigh the costs for most limited companies. For those still questioning the necessity, understanding the value an accountant brings can make the decision clearer and more straightforward.

Key Takeaways

  • Limited companies in the UK are not required to use an accountant.
  • An accountant helps manage financial tasks, allowing business owners to focus on growth.
  • Hiring an accountant can provide significant benefits, especially as the business expands.

Determining the Need for an Accountant

Deciding whether a limited company needs an accountant depends on several factors. These include the complexity of financial tasks, legal obligations, and effective time management.

Financial Complexity

For limited companies, financial tasks can become complex. They involve bookkeeping, payroll, and tax planning. An accountant can streamline these tasks efficiently.

Bookkeeping: Accurate bookkeeping is crucial. Errors can lead to financial mismanagement. An accountant ensures that records are up-to-date and precise.

Payroll: Managing payroll involves calculating salaries, deductions, and taxes. An accountant can handle this with ease, ensuring employees are paid correctly.

Tax Planning: Proper tax planning helps to minimise tax liability. Accountants understand tax laws and can find deductions and credits, leading to significant savings.

Using an accountant to manage these tasks can prevent costly mistakes and ensure the business remains financially healthy.

Legal Obligations

Limited companies must comply with various legal requirements. These include filing annual accounts and submitting returns to HMRC.

Annual Accounts: Preparing and filing annual accounts can be complicated. An accountant ensures that all financial statements are accurate and submitted on time.

HMRC Returns: Late or incorrect submissions to HMRC can result in penalties. An accountant keeps track of important dates and handles the submission process correctly.

Compliance: Compliance with laws and regulations is vital. Accountants stay updated on legal changes and ensure that the company adheres to all requirements.

By having an accountant, companies can avoid legal issues and maintain good standing with regulatory bodies.

Time Management

Running a business is time-consuming. Handling all financial and administrative tasks can take focus away from core activities.

Focus on Core Activities: Business owners need to concentrate on growth and operations. An accountant takes care of financial tasks, allowing owners to focus on what they do best.

Efficiency: Accountants use their expertise to complete tasks more efficiently. This saves time and reduces the burden on company staff.

Stress Reduction: Managing finances can be stressful. Delegating this responsibility to an accountant can significantly reduce stress for business owners.

For many business owners, employing an accountant is an investment that allows them to prioritise and manage their time more effectively.

Benefits of Hiring an Accountant

Hiring an accountant for a limited company brings many advantages. These include expertise in tax matters, support for business growth, and detailed financial advice and planning.

Expertise in Taxation

Accountants have comprehensive knowledge of tax laws and regulations. This expertise ensures that all tax obligations are met accurately and on time. For instance, they can help with tax compliance by filing accurate tax returns and claiming appropriate deductions.

This assistance prevents costly mistakes and possible penalties. Additionally, an accountant can offer advice on tax-efficient ways to manage the company’s finances, thereby potentially reducing the tax burden.

Business Growth Support

Accountants are invaluable when planning for business growth. They can analyse financial data to identify trends and areas for improvement. This analysis helps in making informed decisions about expanding operations or entering new markets.

Moreover, accountants provide insights into cash flow management and can suggest funding options. Having an accountant can also improve a limited company’s credibility with investors and banks, which is crucial for securing funding.

Financial Advice and Planning

Accurate financial planning is essential for any business. Accountants assist in creating budgets and forecasting future financial performance. They help in setting realistic financial goals and devising strategies to achieve them.

Additionally, accountants can act as trusted advisors, offering detailed financial advice tailored to the company’s specific needs. This includes strategies for cost reduction, profit maximisation, and risk management.

Frequently Asked Questions

This section covers common questions about managing finances for a limited company, the benefits of hiring an accountant, and legal requirements in the UK.

Can I manage my own finances for a limited company?

Managing your own finances is possible. However, it can be complex and time-consuming. It requires a good understanding of accounting principles and HMRC regulations.

What are the advantages of having an accountant for my small business in the UK?

Accountants can improve tax efficiency, manage financial records, and offer strategic advice. They help ensure compliance with tax laws and filing deadlines, allowing business owners to focus on growth.

Is it a legal requirement to hire an accountant for the Self Assessment process?

No, hiring an accountant for Self Assessment is not legally required. However, it can prevent errors and ensure all deductions and allowances are correctly claimed.

As a sole trader, is it necessary to enlist the services of an accountant?

Sole traders are not required to have an accountant. Nonetheless, many choose to hire one for help with tax returns, financial planning, and ensuring compliance with HMRC rules.

How can I find a reputable accountant for a limited company near me?

Look for accountants with positive reviews and relevant qualifications.

What is the typical cost of accounting services for a limited company?

Costs can vary widely based on the services required and the size of the company. It’s important to get quotes from multiple firms to compare prices and services offered.

Need to hire an accountant? we can help you with your limited company, contact us today.

Christmas cashflow for your small business

Christmas Cashflow

As the Christmas season approaches, small businesses often face unique challenges that can impact their cashflow. While everyone is gearing up for a well-deserved break, it’s crucial for business owners to plan and ensure financial stability during this period.

One effective strategy to secure your business’s financial health is to focus on cashflow management. By taking proactive steps, you can minimise the impact of potential disruptions and set the stage for a stress-free Christmas season.

One key element is invoicing. Sending out invoices early, and even in advance, if possible, ensures that you’re not left waiting for payments during the holiday lull. Consider offering retainer deals to regular clients, encouraging them to book services or make purchases in advance.

Chasing outstanding payments is another crucial step. Maintaining strong communication with clients and promptly addressing overdue invoices can significantly improve your cash flow. It’s a chance to reinforce relationships while ensuring timely payments.

Open and honest communication extends beyond clients to suppliers. Approach them early and discuss the possibility of extending credit terms. Many suppliers understand the challenges faced by small businesses during the holiday season and may be willing to offer some flexibility to maintain a positive and long-lasting business relationship.

A comprehensive review of your costs is also essential. Evaluate your payroll and planned expenses and conduct a thorough examination of all regular payments and subscriptions. Identifying areas where costs can be trimmed or managed more efficiently can contribute to a healthier bottom line.

For businesses facing tight cashflow, early conversations with banks are crucial. Establishing lines of credit or exploring other financial solutions in advance can provide the necessary support to navigate any challenges that may arise.

Will a business budget will help with your financial decision making

Business Budget

A Business budget is crucial for small businesses as they provide a roadmap for financial success. They offer a clear framework for managing expenses, optimising resource allocation, and achieving strategic goals. In a small business, where resources are often limited, effective budgeting ensures financial discipline, helps in identifying areas for cost savings, and facilitates better decision-making. Moreover, budgets act as a safeguard against unforeseen challenges, providing stability and resilience. Small businesses that prioritise budgeting are better positioned to navigate uncertainties, seize opportunities, and build a foundation for long-term growth and success..

In this blog post, we will delve into the ways in which budgeting profoundly influences businesses and how seeking professional advice can enhance this process.

The Power of Budgeting

Budgeting involves estimating revenues, projecting expenses, and meticulously allocating funds within predetermined limits. The overarching goal is to ensure that businesses adhere to their agreed budget ceiling, fostering financial discipline and resilience. Let’s explore the transformative impact of budgeting on business operations.

  1. Better Financial Control

A well-crafted budget provides a clear roadmap for managing a company’s finances. By adhering to the budget, businesses can exercise better control over expenses, minimise wastage, and optimise resource utilisation. This, in turn, enhances overall financial control and stability.

  1. Achieving Financial and Strategic Goals

Budgets serve as a dynamic tool for setting and tracking financial goals. They act as a compass, guiding businesses to align their strategies with desired outcomes. Whether the focus is on growth, profitability, or debt reduction, a budget provides a structured framework for achieving these goals.

  1. Improved Cashflow Management

Effective budgeting enables businesses to anticipate cashflow fluctuations. By forecasting financial needs during both lean and prosperous periods, companies can ensure they have the necessary funds to cover expenses and seize opportunities. This proactive approach to cashflow management is integral to sustained financial health.

  1. Resource Allocation

Budgets serve as a guiding force for resource allocation. Businesses can strategically decide where to direct their funds, whether towards investments, marketing efforts, operational enhancements, or overall growth. This ensures that resources are deployed in alignment with overarching business objectives.

  1. Performance Tracking

Comparing actual financial results to budgeted projections provides a mechanism for assessing business performance. Variances can be identified promptly, allowing for timely adjustments to stay on course toward achieving financial and strategic objectives.

How Our Firm Can Assist

Navigating the intricacies of budgeting requires expertise and a comprehensive understanding of a business’s unique dynamics. As your trusted adviser, our firm is committed to helping you establish budgets aligned with your strategic business plans. We offer clear tracking and reporting mechanisms, ensuring that you stay informed and empowered to meet your financial targets.

 

Writing a business plan? Read our guide

business plan

Your business plan is the sat-nav that keeps the company moving in the right direction.

Having that guidance can be a massive benefit to your success as a business. But what elements should you include, and what are the main considerations to think about?

A detailed business plan will generally include

  • A clear direction for the business – a well-crafted business plan gives you a defined path to follow, outlining the company’s purpose, goals and strategies. This helps everyone understand the business’s mission, so you’re pulling in the same direction.
  • An overview of your financial strategy – your plan will include revenue projections, expense forecasts and funding requirements. This financial guidance gives you the foundations for mapping out your budgeting, cashflow and securing investments.
  • An overview of threats and opportunities – a robust plan will identify the potential challenges and risks faced by the business. This helps you develop contingency plans for overcoming these challenges, reducing your risk and keeping the company on track.
  • A summary of your sales and marketing strategy – outlining your sales and marketing strategy helps you target the right audience and differentiate your business in the market. This is vital for winning customers and driving your sales revenue.
  • Attract the right investors and lenders – a solid business plan enhances your credibility when you’re approaching investors or lenders. A good plan will demonstrate your commitment to the business, your understanding of the market and your ability to achieve long-term success. This is essential for securing investment and funding.

7 steps to creating a plan for your business

There’s no ‘one size fits all’ business plan. Your business plan should clearly outline your goals and how you intend to reach them. As a starting point, this should include how you intend to set up, finance, manage and run your business.

Use the following seven headings to kick-start your planning process. We can help you work through the numbers and strategic thinking to support your goals:

  1. Describe your business idea – what’s the idea and how does it work? Try to have an ‘elevator pitch’ that quickly and simply describes the potential of your idea.
  2. Set out your business goals – what are your objectives for the business? Set out your vision for the business and what your core mission will be.
  3. Outline your ideal customer – do the research to provide an overview of your target market (the people or organisations you’ll sell to).
  4. Do some competitive analysis – who are your competitors? Consider all the possibilities. They may not be in your precise sector but still compete for the same consumer dollar. What is your competitive advantage (the reason they pick you over your competition)?
  5. Perform a business financial analysis – How will you fund your business and can you demonstrate the financial viability of the business idea?
  6. Sketch out your sales and marketing plans – show how you’ll win customers and generate revenue. Consider the 4 Ps of marketing (Product, Price, Place, Promotion). Plan your budget and work out what your return on investment (ROI) will be.
  7. Outline your business structure – give an overview of your organisational structure and your strategic and operational roles as directors.

A well-structured business plan is an essential document, whether you’re a new founder that’s just starting out, or a seasoned business owner looking to grow and diversify.

Your business plan is never written in stone. It’s a dynamic and evolving document that changes as the business progresses. Revising your business plan on a regular basis helps you improve your goals, refine your strategy and adapt to meet changing circumstances and markets.

How can our firm help you with your business plan?

Having a solid business plan is what gives your company direction, structure and meaningful objectives as an enterprise. As your adviser, we’ll help you understand your business goals and vision, and will help you translate this into a watertight business plan. We’ll also help you track your performance against this plan, and will work with you to update the strategy as the business evolves.

If you’d like to know more about business planning, we’ll be happy to explain. Get in touch to discuss your business plan or ead over to our business planning page to begin your journey.

Want to spend more time doing what you love?

Want to spend more time doing what you love?

Want to spend more time doing what you love?

A key benefit of owning your own business is choosing your working hours.

That was probably a drawcard when you started out. Chances are, you planned to spend less time in your business and more time with your friends and family. Then reality kicked in and you found yourself coming in earlier, staying later, and taking work home with you on the weekend. This probably wasn’t the life you’d imagined.

So, how do you start reducing your hours so that you can spend more time doing what you love?

1. Identify the biggest time wasters in your day.
We live in a time-pressured world where urgency and distraction impede our achievements. How often do you have to stop what you’re doing to respond to a crisis or pressing problem? Do you feel like you need to respond to emails and phone calls immediately?

Sometimes things can feel important because they’re urgent, but really the urgency stems from a lack of planning and preparation. The Achiever Matrix breaks your tasks into four quadrants and helps you identify which tasks you can delegate, which tasks you can stop doing, and which tasks you need to prioritise.

By spending more time on tasks in the ‘quadrant of quality’, you’ll achieve more each day and minimise the risk of tasks becoming urgent.

2. Identify how you can better utilise your team and resources.
Ineffective delegation, or no delegation at all, could be monopolising your time. It’s important that you trust your team, and that they have enough training and resources so that you can empower them with new tasks.

We can help you develop your Organisation Structure with clearly defined roles and responsibilities so you can gain time for yourself to concentrate on key activities, such as revenue generation, more family time, or hobbies. We’ll also help you identify delegation opportunities.

Don’t employ a team? What tasks could you outsource to free up your time? Consider things you don’t enjoy or that aren’t your strength. The most commonly outsourced departments are marketing, administration, HR and finance.

3. Plan for your desired lifestyle.
Setting clear SMART goals, along with monitoring relevant KPIs, can help you to prioritise your most important tasks and get time freedom. If something’s not helping you achieve one of your goals, consider whether it’s really necessary, and if it is, whether someone else can do it. If not, schedule time to get it done before it becomes urgent.

If you struggle to hold yourself accountable to achieving your goals, we can be that accountability backstop to ensure you act to free up your time. You don’t need to be spending 80+ hours in your business (unless that’s really how you want to spend your time!). We can advise on the latest apps and help you put better systems in place to reduce the amount of time you need to spend at work. Get in touch!

“Most of us spend too much time on what is urgent and not enough time on what is important.” – Stephen Covey

Requesting payment of overdue accounts in an economic slowdown

economic downturn,

Cash has always been king but it’s even more important during times of economic slowdown. The slower the economy, the less cash is available in businesses, and the more likely it will be for some customers to be unable to pay.

To protect your business and minimise the risk to your cashflow, follow these six steps to help ensure you get paid.

1. You must continue to enforce your Terms of Trade, however, your approach must change.
Do not adjust your expectation to receive what you are owed but tread carefully with your payment request, or you could risk irreparable damage to your brand and reputation.

2. Triage your debtors.
Consider each customer’s likely financial position; how impacted will their cashflow be in these times? Those who are most at risk need to be treated with empathy and flexibility.

3. A phone call is likely to be the most appropriate contact method.
An email may get missed or inadvertently deleted. Also, it’s hard to portray empathy in an email. A quick, polite phone call to your customer will be respected.

4. When you call customers with outstanding payments, first ask how they are.
Your initial assumptions may be wrong, and they may have been more impacted than you realise. Be respectful and kind in your positioning. If your customer is genuinely struggling, demanding payment within 48 hours may not be appropriate.

5. Offer severely impacted customers options to resolve their balance.
Be honest and tell the customer you are calling to discuss their overdue account and offer them some options, such as spreading payments across the next 6-12 months. Empathy, directness and professionalism are key.

6. Reach an agreement, record the details and set a reminder to check when due again.
If payment doesn’t come through on the agreed date/dates, follow up with the customer (again, with empathy, flexibility and options). Flexibility now will pay off in the future.

In reality, some customers may simply be unable to make payments. If this is the case, referring their account to a debt collection agency may be pointless. Consider the potential brand damage of appearing aggressive during difficult times.

Nobody is immune to the impact of an economic downturn, now or in the future.

Contact us for some scripts that will help you achieve better debtors’ outcomes when phoning clients to discuss overdue accounts. We can also provide you with a Credit Management Guide to support you to manage your accounts receivable and ensure your best shot at getting paid.

Understanding your working capital to maintain business success

working capital

If cashflow is the lifeblood of your business, then working capital is the health check you should regularly undertake to keep your business alive. Regularly checking working capital will play an essential part in maintaining business success during these times of greater economic insecurity.

What is working capital?

Working capital is your current assets minus your current liabilities. It measures the surplus (or deficit) you have to keep your business afloat without needing to sell assets, borrow more, or add your own money into the business. The more working capital you have, the easier it is to fund growth or weather any downturns.

To calculate your working capital: Cash + debtors + stock + work in progress – creditors – taxes owing

For example, if your business had the following balances:

  • Cash £150,000
  • Debtors £120,000
  • Stock £100,000
  • Creditors £45,000
  • Taxes owing £25,000

Then your working capital would be £300,000 (£150,000 + £120,000 + £100,000 – £45,000 – £25,000).

If the business had an overdraft of £150,000 rather than a positive cash balance, the working capital would be zero. This means the business would have no cash to cover any slowdown in debtor payments or a downturn in sales (which would lead to higher stock levels). Worse, the business could be in serious trouble for trading while insolvent.

Now is the time to review your processes and boost your working capital. Consider the following strategies:

1. Build up enough cash to cover at least 2 months’ sales value.
A key learning from the pandemic was how important it is for businesses to have enough cash in the bank to get them through a major disruption. Use the average sales value for the last six months to calculate the amount you’ll need, then manage your expenses to build your cash stocks up to this level.

2. Renegotiate your debt.
If your business has an overdraft, could the core debt be negotiated into a term loan? Have you spoken to your bank manager about options for managing your debt? We can work with you and your bank manager to determine your best finance options.

3. Negotiate with suppliers.
Speak to your suppliers and see if you can negotiate better terms. This might be a discount for early payment or longer payment terms. They could be in the same situation as you, so work together to agree on the best arrangement that suits you both.

4. Set aside money for taxes.
Calculate the percentage of sales you need to put aside for taxes and put this aside in a separate bank account so you have the cash to cover tax payments as they fall due.

5. Inject sufficient funds.
If the above strategies don’t boost your working capital, you’ll need to invest your own funds into the business to cover your working capital requirements.

Even with the many challenges of a slowing economy, regular working capital checks are an effective way to help increase your business’s cashflow. We can help you calculate your working capital requirements and identify strategies you can implement to increase your working capital.

“Change is not a threat, it’s an opportunity. Survival is not the goal, transformative success is.” – Seth Godin

Your Q3 2023 deadlines for the diary

tax deadlines

We’re always here to keep you up to date with the latest accounting, tax and compliance deadlines. Here are the forthcoming deadlines and cut-off points for Q3 of 2023 to add to your diary.

Screen Shot 2023-03-01 at 1.49.54 PM

NOTE: If your company’s accounting period is longer than 12 months, the first tax payment deadline is normally 21 months and 1 day after your accounting period started, and the second one is 9 months and 1 day after your accounting period ends.

For example, a company with an accounting period running from 01/09/2021 to 31/12/2022 will pay the first tranche of corporation tax by 01/06/2023 and the balance by 01/10/2023.

If your profits are more than £1.5 million, then tax is payable quarterly with two payments before the end of your accounting period and two after. The first payment is normally six months and 13 days after the start of the period, with the others three-monthly from that point.

Some general deadlines to plan for:

  • Employment related securities (ERS) schemes need to be registered (for the previous tax year): 6 July 2023
  • ERS Annual Return (for previous tax year) must be submitted: 6 July 2023
  • Enterprise Management Incentives (EMI) schemes ‘notice of options granted’ to be submitted: within 92 days of grant.
  • Submit your P11D, P11D(b) and P9D returns (for 2022/23 tax year): 6 July 2023
  • Pay Class 1A National Insurance contributions to HMRC (for 2022/23 tax year): 19 July 2023
  • Make your second payment on account for 2022/23 personal tax: 31 July 2023
  • Make Capital Gains Tax payment for gains on residential property: 60 days after completion
  • PAYE and National Insurance payments due: 19th calendar day of the month after end of month or quarter as applicable (22nd for electronic payments)

Talk to us about hitting your deadlines

If we’re looking after your payroll and tax returns, we’ll be monitoring these dates and deadlines automatically – but don’t forget that you remain legally responsible for meeting all deadlines.

Keep an eye on all the upcoming deadlines and check the upcoming dates for all relevant activities. Pay particular attention to those where we don’t carry out the task for you. Missing a compliance deadline can result in fines and penalties, so it’s good practice to keep everything well-organised and on time.

Get in touch to discuss your deadlines.

Regain control of your business with the three essential tools

regain control f your business

Business owners often feel like they’re not in control of their business. The number of hours they’re working starts creeping up, they start experiencing more stress, and it starts affecting their personal life.

So, how do you regain that much needed control? How do we gain more financial, time and mind freedom?

There are three essential tools all businesses must have:

  1. An annual Business Plan.
  2. An annual forecast.
  3. Ongoing reporting and accountability.

The annual Business Plan

Your Business Plan shouldn’t be a lengthy document living in a drawer. It should be on one page and displayed somewhere highly visible so you can review it regularly.

Best developed using an independent facilitator, your Business Plan should articulate exactly what you want from your business; the hours you want to work, the holidays you want to take, and the income you need.

You’ll identify Key Performance Indicators (KPIs) to monitor, vulnerabilities to manage, and opportunities to act upon. You’ll set four key goals for the year, breaking these down into quarterly goals with clear actions to complete in order to achieve them.

The annual forecast

Your forecast will record how cash must flow throughout the year to give you what you want from your business. Too often business owners only create a forecast because the bank has requested one.

The forecast highlights your business’s weaknesses, when cashflow problems might arise, and how you need to manage your business financially to achieve the goals in your Business Plan. Don’t wait for your bank to request a forecast; it’s an essential tool to ensure the success of your business every year.

Ongoing reporting and accountability

The value lies in the implementation of your Business Plan and annual forecast. Constantly reviewing your progress against your targets is crucial. Ongoing reporting allows you to track actual results against your forecast to ensure progress towards your goals.

The best way to ensure you don’t fail to implement the plan is to be held accountable by someone independent. Every business owner needs a coach. A great coach will work with you to get a result better than you could achieve on your own. They’ll uncover the root causes of problems in your business and empower you to do better. Most importantly, they’ll hold you accountable to getting the important stuff done.

There are no magic bullets to business success. All businesses need these three tools.

Get in touch to discuss how we can work together – to help you gain control of your business and ensure your business delivers on your vision.

“Dreams x Goals x Plans x Actions = Your success.” – Brad Sugars