Many businesses have a 31 March year end date, which means they are now in the last quarter of their current financial year and have an opportunity to review their business finances.

The last quarter of the year is a crucial time for businesses to review, evaluate, and prepare for both year-end and the year ahead. Here are some business finance-related tasks worth focusing on:

1. Year-End Financial Review

• Reconcile Accounts: Ensure all bank accounts, credit cards, and financial transactions are reconciled.
• Review Outstanding Invoices: Follow up on overdue payments to improve cash flow before the year’s end.
• Analyse Profit and Loss Statements: Identify trends, key expenses, and areas for improvement.

2. Tax Planning

• Utilise Allowances: Maximise annual allowances like the Annual Investment Allowance (AIA) or other reliefs before the tax year ends.
• Plan for Corporation Tax: Estimate your liability and consider deferring or accelerating expenses and income to optimise tax.
• VAT Review: Ensure VAT returns are up to date and assess eligibility for any VAT schemes.

3. Budget and Forecasting for the Next Year

• Set a New Budget: Base it on this year’s performance and anticipated changes.
• Forecast Cash Flow: Account for seasonal fluctuations and expected outlays.
• Scenario Planning: Prepare for various outcomes such as economic changes or market shifts.

4. Capital Expenditures

• Investment Opportunities: Evaluate if there are capital expenditures worth making to take advantage of or other tax benefits.
• Equipment Upgrades: Replace ageing equipment to improve efficiency or productivity.

5. Employee and Payroll Planning

• Bonuses and Incentives: Plan and allocate year-end bonuses if applicable.
• Review Payroll Systems: Ensure compliance with HMRC regulations and confirm all data is accurate.
• Pension Contributions: Consider making employer contributions to employee pension schemes, which may also reduce taxable profits.

6. Review Financing Options

• Debt Management: Refinance existing loans or pay down high-interest debt to improve financial health.
• Credit Facilities: Check if your business has access to adequate credit facilities for the next year’s needs.
• Grants and Incentives: Research government or local grants that align with your business activities.

7. Inventory Management

• Stocktaking: Conduct a thorough inventory review to manage obsolescence and reduce holding costs.
• Discount Slow-Moving Stock: Use end-of-year sales or promotions to free up cash tied in inventory.

8. Corporate Compliance and Governance

• Review Policies and Contracts: Update supplier agreements, insurance policies, and service contracts.
• File Annual Returns: Ensure your company’s filings with Companies House are current.
• Update Director Records: Review and confirm director and shareholder information.

9. Cost Management

• Assess Fixed and Variable Costs: Identify areas for cost reduction without compromising quality or service.
• Review Supplier Contracts: Renegotiate terms to secure better pricing for the coming year.
• Utility Costs: Shop around for better deals on utilities like energy and telecoms.

10. Plan for Growth

• Explore New Markets: Research potential new customer bases or territories.
• Marketing Budgets: Allocate funds for marketing initiatives that will drive growth in Q1 of the next year.
• Talent Acquisition: Plan for hiring to fill gaps in your workforce.

11. Insurance and Risk Management

• Renew Policies: Review coverage for liability, property, and other business risks.
• Mitigate Risks: Assess and implement measures to reduce financial and operational risks.

12. Stakeholder Communication

• Update Investors or Shareholders: Provide end-of-year reports to ensure transparency.
• Employee Meetings: Share year-end results and next year’s goals with your team to build morale.
• Customer Engagement: Strengthen relationships with customers through personalised offers or appreciation.

13. Technology Investments

• Software Upgrades: Consider investing in accounting or operational software to improve efficiency.
• Cybersecurity: Strengthen your business against cyber threats, particularly if you manage sensitive customer data.

14. Succession and Exit Planning

• Business Valuation: Assess your company’s value if you’re planning an exit or transition.
• Update Wills and Trusts: Ensure business interests are properly accounted for in personal estate planning.

15. Charitable Contributions

• Make Donations: Consider making tax-deductible contributions to charities or community programmes.
• Community Engagement: Use this as an opportunity to enhance your business’s reputation.

By considering these and other relevant tasks, you’ll not only optimise your financial position for year-end but also set a strong foundation for the next financial year.

Please note, the above check list may contain or exclude issues that are relevant or not relevant to your business. Before taking any action, please call so we can help you create a year end review that is impactful for your specific business circumstances.

Artificial Intelligence (AI) is no longer a futuristic concept; it’s becoming an integral part of various industries, including those you might not immediately associate with high-tech solutions. The UK government has recently announced a significant initiative to integrate AI into small businesses across the country, aiming to boost productivity and efficiency. Here’s a closer look at how AI is set to transform sectors ranging from baking to road maintenance.

Government’s AI Initiative

On 14 January 2025, the Department for Science, Innovation and Technology unveiled a plan to fund 120 projects with a share of £7 million. These projects are designed to evaluate and implement AI technologies in small businesses across diverse sectors, including agriculture, retail, and construction. The goal is to harness AI’s potential to drive economic growth, enhance public services, and improve living standards nationwide.

AI Applications in Various Sectors

• Baking Industry: One of the funded projects involves a bakery utilizing AI to reduce food waste. By accurately predicting daily sales, the AI system can forecast the exact quantity of each product to bake, ensuring freshness while minimizing surplus. This not only enhances efficiency but also protects profit margins.
• Road Maintenance: Another innovative application is the development of an AI tool capable of predicting potholes before they form. By analysing road conditions and environmental factors, the system can identify potential problem areas, allowing for proactive repairs. This approach promises to reduce maintenance costs and prevent vehicle damage caused by potholes.
• Agriculture: In the farming sector, AI models are being trialled to help farmers optimize dairy production. By analysing data on cow health, feed, and milking patterns, AI can provide insights to increase yields, contributing to more efficient and sustainable farming practices.

Broader Implications

The government’s investment in these AI projects reflects a commitment to making the UK a global leader in AI adoption. By focusing on small businesses, the initiative ensures that the benefits of AI are accessible across the economy, not just within large corporations. This democratization of technology is expected to lead to:

• Increased Productivity: AI can automate routine tasks, allowing employees to focus on more strategic activities.
• Cost Savings: Predictive tools can help businesses anticipate issues before they become costly problems.
• Enhanced Competitiveness: Small businesses equipped with AI capabilities can compete more effectively in both domestic and international markets.

Conclusion

The integration of AI into everyday business operations signifies a transformative shift in the UK’s economic landscape. By supporting small businesses in adopting AI, the government is fostering an environment where technology drives growth, efficiency, and innovation. As these projects develop, we can anticipate a future where AI plays a pivotal role in sectors as diverse as baking and road maintenance, heralding a new era of productivity and prosperity.

As we kick off the New Year, it’s a great time to take control of your finances, especially if debt has been weighing you down. The Insolvency Service has highlighted several options to help you manage and alleviate serious debt. Here’s a rundown to get you started on your journey to financial freedom.

1. Seek Free Debt Advice

First things first, connect with a regulated debt advisor. Many offer free services and can guide you toward the best solution for your situation. The UK government provides resources to find free debt advice services.

2. Explore Debt Management Solutions

Depending on your circumstances, consider the following options:

• Debt Management Plan (DMP): An informal agreement with your creditors to pay off your debts at a manageable rate. A debt advisor can help set this up.
• Administration Order: If you have a County Court Judgment (CCJ) or High Court Judgment (HCJ) against you and owe less than £5,000, this court-based arrangement allows you to make single monthly payments to cover your debts.
• Breathing Space Scheme: Officially known as the Debt Respite Scheme, it provides temporary protection from creditors, pausing enforcement action and freezing charges on qualifying debts. You’ll need to apply through a debt advisor.

3. Consider Debt Relief Options

If repaying your debts isn’t feasible, these options might be suitable:

• Debt Relief Order (DRO): For those owing less than £50,000, with limited income and assets, a DRO can freeze your debts for a year, after which they’re written off if your situation hasn’t improved.
• Individual Voluntary Arrangement (IVA): A formal agreement with your creditors to pay back debts over a set period, often at a reduced amount.
• Bankruptcy: A legal status for individuals unable to repay their debts, leading to the sale of assets to pay creditors. This is a serious step with significant implications and should be considered carefully.

4. Act Early

Addressing debt issues promptly can prevent them from escalating. The sooner you seek advice and explore your options, the better positioned you’ll be to regain control over your finances.

Remember, you’re not alone in this journey. Many have faced similar challenges and found relief through these avenues. Take the first step today by reaching out to a debt advisor and exploring the solutions best suited to your needs.

We have set out below some of the issues you will need to consider if you are contemplating selling your goods or services online for the first time. 

1. Business and Legal Considerations

• Determine Online Sales Goals
  Define whether you are selling locally, nationally, or internationally and the expected scale of operations.
• Legal Compliance
  Ensure you comply with UK laws, including the Consumer Contracts Regulations, GDPR for data protection, and any industry-specific regulations.
• Tax Obligations
  Register for VAT if required and understand how online sales affect your tax responsibilities, including cross-border VAT rules.
• Business Structure
  Check if your current business structure supports online trading, or if adjustments are needed (e.g., sole trader, limited company).

2. Products and Services

• Catalogue Your Offering
  Create a detailed inventory of goods or services, including descriptions, prices, and stock levels.
• Pricing Strategy
  Consider online pricing, factoring in delivery costs, transaction fees, and competitors’ pricing.

3. Online Store Setup

• Choose a Platform
  Select a suitable e-commerce platform like Shopify, WooCommerce, or Squarespace, or consider marketplaces like Amazon or Etsy.
• Domain Name and Hosting
  Secure a domain name that reflects your business and arrange reliable hosting services.
• Website Design
  Ensure the site is user-friendly, visually appealing, mobile-responsive, and has clear navigation.

4. Payment and Security

• Payment Gateways
  Set up secure payment options (e.g., PayPal, Stripe, or credit card processors).
• SSL Certificate
  Install an SSL certificate to encrypt customer data and build trust.
• Fraud Prevention
  Implement measures to detect and prevent fraudulent transactions.

5. Shipping and Delivery

• Delivery Options
  Decide on shipping providers and delivery timescales, offering options such as standard, express, or free delivery.
• Returns and Refunds
  Develop a clear returns and refunds policy in line with legal requirements and display it prominently.

6. Marketing and Branding

• Brand Identity
  Establish a consistent brand, including logo, colours, and messaging, to stand out online.
• SEO and Content
  Optimise your website for search engines with keywords, quality content, and blog posts to attract traffic.
• Social Media and Advertising
  Set up social media accounts and consider paid advertising, email campaigns, or affiliate marketing.

7. Customer Support

• Contact Channels
  Provide easy ways for customers to reach you, such as live chat, email, or a helpline.
• FAQs and Policies
  Include an FAQ section and make terms and conditions readily available.

8. Analytics and Feedback

• Track Performance
  Use tools like Google Analytics to monitor traffic, sales, and customer behaviour.
• Customer Feedback
  Encourage reviews and feedback to improve your service and build trust.

This checklist provides a reasonable foundation to help you transition into online selling smoothly and successfully. Please get in touch if you would like our help preparing a budget and forecast to assess viability.

Chancellor Rachel Reeves has scheduled the UK’s Spring Statement for 26 March 2025. This event will feature the Office for Budget Responsibility’s (OBR) latest economic and fiscal forecasts, accompanied by a parliamentary statement from the Chancellor. Reeves has emphasized her commitment to delivering one major fiscal event annually to provide stability and certainty for families and businesses, supporting the government’s growth mission. 

While the Spring Statement is not traditionally a full budget, it offers an opportunity to address pressing economic issues. Given the current economic challenges, including a £22 billion deficit in public finances and recent economic contractions, there is speculation about potential adjustments to previously announced measures.

One area of focus is the planned increase in employers’ National Insurance Contributions (NICs). Set to rise to 15% on salaries above £5,000 from April 2025, this proposal has faced significant backlash from businesses and the charity sector. Experts suggest that the Spring Statement could be an opportunity for the Chancellor to reconsider or modify this measure to alleviate concerns. 

Additionally, the government has announced plans for a multi-year Spending Review, now scheduled to conclude in June 2025. This review aims to embed a mission-led approach, drive public service reform, and optimize the use of technology in service delivery. The outcomes of this review will set spending plans for at least three years, influencing future fiscal policies and priorities. 

In the lead-up to the Spring Statement, various sectors are voicing their concerns and expectations. For instance, the farming industry is organizing a UK-wide day of action on 25 January to protest proposed inheritance tax changes affecting family farms. Such demonstrations highlight the pressures on the Chancellor to address sector-specific issues in her forthcoming statement. 

It’s also worth noting that the Spring Statement will occur amidst ongoing economic challenges, including sluggish growth and high inflation. The Chancellor has expressed her determination to restore economic stability and has indicated that while the Spring Statement may not introduce new tax hikes or increased borrowing, it will provide an update on the government’s fiscal strategy and economic outlook. 

In summary, while the Spring Statement on 26 March 2025 is not expected to serve as a full budget, it presents an opportunity for the Chancellor to provide updates on the UK’s economic situation, potentially adjust previously announced measures, and outline the government’s fiscal strategy in response to current economic challenges.

The ongoing refusal of the UK government to compensate women affected by changes to the state pension age, often referred to as WASPI (Women Against State Pension Inequality) claimants, continues to provoke widespread criticism. This controversy centres around women born in the 1950s who were significantly impacted by the transition from a state pension age of 60 to 66, introduced in the Pensions Act 1995 and accelerated by the Pensions Act 2011. Many argue that the lack of adequate notice left them unprepared, causing severe financial hardship and emotional distress.

The WASPI campaign highlights the struggles of women who, having worked and contributed to the state pension system for decades, found themselves blindsided by the pension age changes. While the government insists these reforms were necessary to ensure the sustainability of the pension system and to address gender inequality in retirement ages, critics argue that the abrupt nature of the changes disproportionately affected this group of women. For many, the issue lies not with the equalisation itself but with the failure to provide sufficient warning and transitional arrangements.

A key grievance among WASPI women is the absence of proper compensation for the financial and emotional damage caused. Many of these women were relying on receiving their pensions at 60, having made life plans and financial decisions based on this expectation. The sudden extension of their working years, often without the chance to save more or adjust plans, has pushed thousands into financial precarity. Some were forced to take on unsuitable jobs, dip into savings, or rely on benefits, undermining the dignity and security they had expected in their later years.

The government’s refusal to compensate these women has been particularly contentious given findings from the Parliamentary and Health Service Ombudsman (PHSO). The Ombudsman found that the Department for Work and Pensions (DWP) was guilty of maladministration, citing its failure to adequately communicate the changes to affected women. Despite this ruling, the government has maintained its stance, arguing that compensation is not warranted and claiming that the measures were implemented fairly.

This position has sparked outrage among campaigners, many of whom view it as an abdication of responsibility. WASPI campaigners have consistently argued that the government’s failure to act on the Ombudsman’s findings undermines public trust in institutions and suggests a lack of accountability. The refusal to provide redress has also intensified calls for judicial review and further legal challenges, as many affected women refuse to accept the decision without a fight.

Critics of the government’s approach point to the broader societal implications of ignoring the plight of WASPI women. This case raises fundamental questions about fairness, justice, and the treatment of citizens who have contributed to the welfare state. Many believe that the government’s intransigence risks alienating a generation of women who feel betrayed by the system.

Ultimately, the WASPI controversy reflects a broader tension between fiscal responsibility and social justice. While the government prioritises managing public finances, the affected women argue that their sacrifice has come at an unacceptable cost. As the campaign for compensation continues, the government’s refusal to act remains a stain on its commitment to fairness and equality. Without resolution, the issue is likely to remain a significant point of contention in public discourse.

Selling online? From 2024, digital platforms must report your information to HMRC if sales exceed £1,700 or 30 goods a year. Casual sellers are exempt, but regular traders may need to register for Self-Assessment.

New rules, which became effective from 1 January 2024, require digital platform operators in the UK to collect and verify information about sellers on their platforms. The first reports due under these new rules must be submitted by 31 January 2025. HMRC has released a press release to make it clear that the tax rules for sellers have not changed despite rumours to the contrary.

These new rules mean that if you are using online platforms to sell goods or services, any pertinent information collected about you between 1 January 2024 to 31 December 2024 will be reported to HMRC by 31 January 2025. The information will only be shared with HMRC if you sell 30 or more goods or earn approximately £1,700 (equivalent to EURO2,000) or more in a calendar year. The online sellers are also required to give you a copy of the reported information. This can help if you have to make tax returns.

HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:

We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due. As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self-assessment.

You may need to register for self-assessment and pay tax if you:

• buy goods for resale or make goods with the intention of selling them for a profit;
• offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website;
• AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.

Can’t pay your tax bill in full by 31 January 2025? HMRC’s online Time to Pay system lets self-assessment taxpayers spread the cost over monthly instalments. With plans available for tax bills up to £30,000, this flexible option can help you avoid late payment penalties.

Those eligible for the self-serve option can arrange payments online without needing to contact an HMRC adviser. HMRC has revealed that more than 15,000 taxpayers have already set up a Time to Pay payment plan for the 2023-24 tax year.

To qualify for the online Time to Pay option, taxpayers must meet these conditions:

• No outstanding tax returns
• No other tax debts
• No existing HMRC payment plans

For taxpayers who do not meet these requirements or owe more than £30,000, other payment arrangements may be available. These are typically agreed on a case-by-case basis, tailored to individual circumstances and liabilities, allowing businesses and individuals to pay off their debt over time.

HMRC’s Director General for Customer Services, said:

We’re here to help customers get their tax right and if you are worried about how to pay your self-assessment bill, help and support is available. Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.

Over one million parents have now claimed Child Benefit online or via the HMRC app, with 87% of new claims using this speedy service. If you’ve recently had a baby or a child joins your family, applying online ensures you get support quickly-right when you need it most.

HMRC’s Director General for Customer Services, said:

“Having a baby is a busy and expensive time but claiming Child Benefit online or via the app means you’ll get cash in your bank account as soon as possible. Claim now and you could get your first payment in time for your baby’s first Christmas. Download the HMRC app today.”

You can apply for Child Benefit starting the day after you register your child’s birth or when a child comes to live with you. Claims can be backdated up to 12 weeks. Applying online is usually the fastest way to complete your claim.

If you are unable to claim online, you can complete the Child Benefit form CH2 and send it to the Child Benefit Office. The address can be found on the form. If you are claiming for more than two children, you will need to complete the additional child form CH2(CS) and send it with your CH2 form. Alternatively, you can contact HMRC by phone if online or postal methods are not suitable.

Child Benefit is typically available for children who move to the UK. However, there are certain requirements that must be met to claim. If a child receiving Child Benefit moves permanently abroad, HMRC must be notified as soon as possible.

The child benefit rates for the only or eldest child in a family is currently £25.60 a week and the weekly rate for all other children is £16.95. The rates are set to increase to £26.05 and £17.25 respectively from April 2025.

Do you have a zero target for your Inbox or are you the victim of an ever growing list of emails?

This post sets out a number of ideas that you may want to consider starting 2025 with an ambition to restore sanity to your email management.

Adopt the “Inbox Zero” Mentality
Aim to keep your inbox as close to empty as possible by the end of the day. Treat your inbox as a temporary holding area, not long-term storage.

Set Aside Specific Times for Emails
Allocate 2-3 dedicated times per day to check and respond to emails. Turn off notifications to avoid constant interruptions.

Prioritise with Rules and Filters
Use your email client’s filtering system to automatically sort incoming emails into folders based on importance or category. Mark newsletters, promotions, and non-urgent messages to skip your inbox and go directly to a specific folder.

Unsubscribe Ruthlessly
Unsubscribe from newsletters or mailing lists you no longer find useful. Use tools like Unroll.me or perform a manual clear-out.

Use Folders and Labels
Create folders or labels for common categories such as “Invoices”, “Clients”, “Personal”, etc. File emails immediately after reading or replying.

The Two-Minute Rule
If an email takes less than two minutes to address, deal with it immediately. For more complex emails, move them to a “To Do” folder or add them to your task list.

Leverage Email Tools and Features
Use tools like Snooze (Gmail) or Schedule Send for reminders and timely replies. Use canned responses or templates for repetitive emails.

Avoid Email as a Chat Tool
If the discussion requires multiple back-and-forth messages, consider a quick phone call or a chat app instead. Keep emails concise to reduce the risk of long, time-consuming threads.

Set Clear Expectations
Let colleagues or clients know your typical response time to manage their expectations. Add an out-of-office or delayed response note if you’re unable to reply quickly.

Regularly Declutter
Spend a few minutes weekly deleting or archiving old emails. Use the search function to find and delete large or unnecessary files clogging your storage.

Use Multiple Email Accounts
Keep work, personal, and subscriptions/emails-for-signups separate. This makes it easier to focus on what’s important in each account.

Limit Forwarding and CC-Ing
Avoid unnecessarily forwarding or CC-ing emails to others, as this can contribute to clutter on both sides. Politely discourage others from CC-ing you unless it’s essential.

Archive Don’t Delete
Archive emails you might need later instead of deleting them. This helps you maintain a clean inbox while still having access to old information.

Use a Task Manager
Convert actionable emails into tasks using apps like Todoist, Trello, or Microsoft To Do. This separates your to-do list from your inbox, reducing mental clutter.

Review Before Logging Off
Spend 5-10 minutes at the end of your day reviewing your inbox. Respond to quick messages and file or snooze what remains.

Final Thought
The key to inbox management is consistency. While these tips may seem straightforward, applying them regularly will help you maintain a streamlined inbox without feeling overwhelmed. A clean inbox not only boosts productivity but also reduces stress, making it easier to focus on more important tasks.