, Get Ahead: Essential End of Tax Year Planning Guide

Hello folks.

Yes, it’s another Enso newsletter packed with lots of financially savvy goodness, all designed to keep you on track and ensure you’re getting the most out of your business finances. You don’t need me to tell you it’s nearly the end of the tax year, and if you’re one of my clients, the Enso team will be elbow-deep in all this for you via your business tech.

So you’re in good hands, but if there are other areas in which you feel you need extra support, do get in touch.

So, what’s the deal with the tax year-end? As well as ensuring you file your business and tax accounts as required, it’s also when any new tax rules kick in based on what the government announced in the budget. It’s a valuable point to look back at your finances for the past year and plan for the next.

To help you out, here’s a simple but not exhaustive checklist you can consult so we can all get things sorted on time!

Are Your Accounts Up To Date?

It’s not just a legal thing. It’s essential to report your finances accurately and on time. Ensure all your money stuff, like pension contributions and sales, is correctly recorded.

Protect your cash

Keep your cash reserves up by delaying payments to suppliers until you need to, but also make sure you’re getting paid what you’re owed.

Sort Out Bonuses And Expenses

Pay bonuses and expenses before the tax year ends to avoid messing up next year’s finances.

Set your 24/25 Budgets 

Look at your past finances to plan for the future. See when you make the most money and plan your spending accordingly.

Use Your Tax Allowances 

Make the most of tax breaks and allowances that apply to you. Consider putting money into your pension or ISAs.

Of course, if any element here causes a slight panic because you’re unsure, jump online and contact my team.

The Devil In The Detail

Perhaps more important than a formal end-of-year financial process, knowing some of the legislative changes coming in 2024 is essential. Small business owners will face some demanding new rules and regulations this year. Here are some of the bigger ones.

January: Reporting Rules for Digital Platforms

I’ve mentioned this several times, but it’s worth saying again. From January 1st, Digital platforms like Airbnb and Uber must report seller income to HM Revenue & Customs to combat tax evasion. Check my last newsletter for more info.

Rules On Food Imports From The EU To The UK

Ah, Brexit. The gift that keeps on giving! Four years later, much-delayed trade rules will impose extra checks on animal and plant products imported into Great Britain from the EU. This ramp-up will also increase the import paperwork burden and, inevitably, business costs. Have you planned for these if they affect you?

May: Companies House Fees Are Goin’ Up

Companies House fees will rise.

  • Incorporating a limited company online: £12 to £50
  • Registering a community interest company online: £27 to £65
  • Incorporating a limited company by post: £40 to £71
  • Changing a limited company name: £8 to £20

You’ll agree those are hefty rises, so if you plan any of the above procedures, maybe get in early.

April: Living And Minimum Wage Increases

These are important, so heads up. The National Living Wage and National Minimum Wage rates have increased since the beginning of April. It’s time to update your payroll and adjust your wage budgets. You can use the National Minimum Wage calculator for further guidance.

April 6th: Tax Allowance Reductions

Reductions in dividend tax allowance and capital gains tax allowance take effect. More government penny-pinching, I’m afraid, where tax reliefs for dividend allowances are set to £500, and annual CGT reliefs move from £6000 to £3000.

April 6th: Flexible Working Changes

New regulations grant new employees the right to request flexible working from day one. You may need to invest in resources available for managing remote businesses and adapting to flexible working. This work style works well for the Enso team, so don’t be too concerned.

July 1st: Tipping Tip-Off 

One for the hospitality businesses out there. The Allocation of Tips Act ensures the fair and transparent allocation of tips to workers. Employers must follow guidelines and maintain records of tip distribution to be compliant.

September: Predictable Working Patterns

The Predictable Terms and Conditions Act allows workers to request more predictable working patterns. Plans for amending your rosters, customer comms, and internal processes may be in order.

There are many more bits and pieces of legislation besides the above, so make sure you’re up to date. Maybe get HR or your outsourced provider on the case. And as you’ll know, Enso has a legal arm that can give advice, so drop me a line if you think we can help.


, Get Ahead: Essential End of Tax Year Planning Guide

They Give With One Hand…

Regular readers will know I love telling you where you can get a bit of extra lucre, primarily via the recent upticks in savings interest. But where there’s light, there’s shade, so here’s the sting in the tail. If you’ve been able to stash away more than £9,500, you could have an unexpected tax bill!

For high-rate 40 per cent of taxpayers who have £9,597 in 5%+ easy-access savings accounts reach the dizzying heights of £9,597, then HMRC will extend their grasping mitts.

Nonetheless, it’s still cash worth acquiring, taxed or otherwise, so putting your spare money into the highest available savings rate for your rainy-day funds is still a great idea. Just be mindful of your personal savings allowance.

This is not tax-free money – sorry!

If you have reasonable sums to salt away, it’s worth considering high-interest, easy-access cash ISAs, which are now better value after years of woeful returns. And don’t forget to look into a stocks and shares ISA, where the dreams of those considering retirement may find enhanced returns.

And for couples, you can double up on your ISA allowance to max out your tax-free nest egg, potentially stashing up to £40,000 for some tasty tax-free cash injections in the future. Nice!

And there’s more! For those earning below the £12,570 tax threshold, there’s an additional £6,000 tax-free allowance, the starting rate for savers. So earning a modest £12,570 gives access to £6,000 in savings interest before the taxman comes to a-knockin’. It’s a simple way to put away modest windfalls and have some growing fall-back cash if you need it one day.

It’s A Busy Time

It seems I’ve hit you with a lot of information there, but it’s all important at this time of year and for planning your business for the future. And that’s not to mention the shenanigans that The Chancellor has up his sleeves for the upcoming Budget on March 6th. A mooted 2p cut in basic income tax is emerging from the Westminster rumour mill, and new taxation classes are in the pipeline (anyone vaping?).

Whether this pivot of statements is a genuine recognition of the cash-strapped Brits or a headline-grabbing election bribe remains to be seen. I suspect we’ll be looking at that when it all lands, and I’ll issue any urgent updates when it’s been all dragged into the light.

But I also promise I’ll look for some lighter topics for us to consider whenever possible.

So, in the interim, all the best


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