Getting ready for 2025

by Michael Blaken

As we welcome in a new year, what opportunities and challenges lie ahead for your business? Are you setting plans in motion to make the most of them?

According to Lloyds’ Business Barometer, three fifths of businesses in the South West expect their turnover to increase in 2025, while more than half say they will be more profitable.

How can you make sure your business is one of them?

One way is to revisit your business plan. Reflect on your progress, evaluate how well you’re meeting your goals, and update your plan to align with the coming year’s priorities. Business plans aren’t just for startups. They are living documents that can help you stay on track.

The year ahead may bring challenges for employers, including rising employment costs, alongside relatively high interest rates and inflation. However, businesses that focus on understanding their financials, managing resources effectively, and maintaining robust cashflow planning are well-positioned to thrive.

With the financial year drawing to a close, now is also the time to maximise your tax allowances. Here are key areas to consider:

• ISAs – make sure you have paid in the maximum to make use of the tax-free allowance available, which for 2024/25 is £20,000.
• Personal allowance – if you have control over your level of income, ensure you have made full use of your personal allowance, currently £12,570.
• Dividend allowance – for shareholders and directors, the tax-free dividend allowance is £500.
• Capital Gains Tax allowance (the profit you make from disposing of an asset) – currently £3,000.
• Pension contributions – currently £60,000 per year per person. If you haven’t reached this, you might want to pay in more before the new tax year. Make sure you speak to your financial adviser first.

If you would like some help or advice on planning for your business, or end-of-year tax planning, please get in touch with our tax team.