Year-end often brings a quieter period even in the most active office environments. It may be the best chance you will get for business leaders to come together to talk about big-picture strategies. 

Whether it is adjusting to higher tax rates, updating your payroll processes, or planning for the succession of your business, now is the time to make preparations for long-term success.

Where to start?

Any change, big or small, can bring its share of challenges.

However, with proper planning and foresight, the headaches and disruptions can be kept to a minimum.

Jon Stocker, General Practice Partner at Milsted Langdon says: “The end of the calendar year is a great time to look back and review the success of your business in 2024 and develop ideas of how to move forward next year.

“Ask yourself, what are you excelling in? What challenges are you likely to face next year? Are there any opportunities that you can capitalise on? Are there any areas of the business you should put a heavier focus on?

“These are all the types of questions you should know the answers to when you are putting together your strategies for 2025.”

Invest in your people

When clients choose to work with your business, they are drawn to the people behind it just as much, if not more, as to the product or service.

As wages and employer NIC rates are due to increase significantly in April 2025, investing in your current team’s development could be a more sustainable solution than hiring additional staff.

Jon suggests, “By training and upskilling your team, you not only fill skill gaps but also boost morale, enhance productivity, and reduce staff turnover.

“With the right training, your staff can handle more complex responsibilities, contributing to the business’s growth without the need for an extensive hiring process.

“Developing in-house talent can be cost-effective in the long run and may help ease the financial impact of the upcoming regulations.”

Upgrade your technology

Over the past few decades, we have witnessed technology transform the way businesses operate, allowing them to streamline processes, improve accuracy, and free up valuable time for higher-priority tasks.

This transformation shows no signs of slowing down – in fact, it’s only going to speed up.

Jon says: “Staying competitive in today’s environment means embracing technology advancements, especially as digital compliance requirements like Making Tax Digital (MTD) become the norm.”

Falling behind on tech adoption could result in both operational inefficiencies and regulatory penalties, which can put your business at a disadvantage.

“Take some time to evaluate your current processes and the technology supporting them. Is it up to date and fit for purpose? Are there any updates or new features you could take advantage of?”, continues Jon.

“If your current systems aren’t meeting your objectives, it may be time to explore alternative options that align better with your goals.

“Fortunately, there are now numerous cloud-based software solutions available that can often integrate seamlessly with the technology you already use.”

Unlike many firms, Milsted Langdon is not tied to one software provider, so we can give you honest, unbiased information to help you choose the right package for your business should you need it.

Succession planning

Following the announcement of changes to Capital Gains Tax (CGT) and Inheritance Tax (IHT) in the Autumn Budget, succession planning has become a top priority for business owners looking to protect family wealth, ensure smooth transitions, and optimise tax efficiency.

Jon suggests: “If you’re looking to sell your business, whether it be by a management buyout or an alternative method, the timing of your sale needs to be carefully planned.”

There is still some time to take advantage of the current 10 per cent Business Asset Disposal Relief rate before it increases to 14 per cent in April.

“If you want to sell up and lock in this lower rate and save a considerable amount of money, make arrangements now so that it can be sold prior to April 2025”, says Jon.

“Recent interest rate cuts have also made financing a management buyout more affordable, meaning management teams may be able to secure more favourable repayment terms if they make arrangements now.

“The additional continued support of tax incentives like R&D relief and capital allowances can also free up essential cash flow for reinvestment and growth after the buyout.”

If you are looking for support with your succession planning, Milsted Langdon can provide you with the expert guidance you need for a smooth transition.

Build momentum for 2025

By investing in your team, upgrading your technology and refining your financial strategy now, you can turn the upcoming changes into opportunities for growth and resilience.

Contact the team at Milsted Langdon for support in optimising your financial plans for 2025.