The ONS reported a modest GDP growth of 0.1% in December 2024, offering slight optimism after earlier concerns. The UK’s S&P Global Manufacturing Index shows improvement heading into 2025, though it remains fragile.

A significant challenge is the April increase in employers' national insurance, which is expected to impact industries like hospitality and retail heavily due to mass employment and minimum wage contracts.

Positive changes include adjustments to financial reporting thresholds and the rollout of HMRC's Making Tax Digital for sole traders and landlords, though the increased administration may be burdensome. Xero is well-equipped to meet these new requirements.

Lastly, Xero invoicing is adopting a modernized design—feel free to explore the updates and reach out with any questions.

The Autumn Statement introduces key changes affecting businesses and individuals. Employers’ National Insurance will rise to 15% from April 2025, with increased relief for eligible businesses. Business rates relief for retail, hospitality, and leisure will drop significantly, while minimum wage increases will heavily impact industries like hospitality. From 2027, unused pensions will be subject to inheritance tax, and Capital Gains Tax rates have risen immediately. Planned reforms to child benefits have been reversed, but fiscal drag remains a concern as unchanged thresholds push more taxpayers into higher brackets. These updates highlight both challenges and opportunities for businesses navigating the new fiscal landscape.

Key things to note in this edition of our newsletter are:

Things do seem to be getting better....at last

Changes to the small and micro company thresholds for business size to determine whether you need an audit

As trading improves beware of overstretching your cash resources, interest rates are still high and a cash flow forecast could save you money and heartache

Use xero to pay your bills directly instead of punching in the data on your banking app

Other watchouts are:

- 31 July is the deadline for your second instalment for income tax year ending April 25.

- P11d deadline is 6th July and payment by 22nd July to avoid a fine.

The global and domestic issues are enormous right now. Inflation is sticky, unemployment rising, democracy under threat, all of which

matter none of which we control.

With the 2023/24 Fiscal Year ending on 5 April 2024 and the 2024/25 Fiscal Year beginning on 6 April, there are upcoming deadlines you need to know.

Yesterday Chancellor Jeremy Hunt announced the 2024 Spring Budget, which in an environment with apparently little room to manoeuvre sees little change for business owners. Sadly no row back on the last corporation tax increases, dividend allowance reduction or dividend tax rate increases but there were a few snippets for individuals.

The Chancellor has issued his Autumn mini budget, constrained by limited economic growth, post covid borrowing and the highest tax burden since WW2, there are few options.

“The ability of an organization to reduce waste in time, effort and materials while still producing a high-quality service or product”.

Back to work - Now what?
The Summer holidays are over and Christmas will be on us before we know it. Things to consider now whilst there is time

Since the UK and EU adopted the post Brexit trading arrangements in January 2020, it has proved increasingly difficult and expensive for businesses to trade across the border.

Unlock the value of your hard work with MBS's "Accelerator" program. As statistics reveal that 95% of owner-managed businesses exit for less than true value, our program helps you plan your exit strategy and optimise value generation.

In short things are difficult, and there are no consistent signs of recovery yet. Collect what you are owed and prepare your customers for price increases.

At the moment cash is king, borrowing is difficult and expensive, be cautious, have a plan and stick to it. It may not be a recession but it is definitely tough. With the anniversary of invasion of Ukraine, interest rates at 4.5% and inflation still high and in your costs, prepare your next price increase now.

Difficult times lie ahead. It is important to be in control of what you can and prepare for what you cannot. Fundamental for any business is a financial and tactical plan.

Inflation is now running at nearly 10% per annum. As it is not expected to relent for more than a year, it's important to review your pricing. Justifications for price increases include rising energy and fuel costs, raw material costs, delivery costs, employment costs and so on.

Dealing with Bounce back loans

Business Planning - spring statement & National Insurance

Golden nuggets - super -deduction

Making the most of xero

• Inflation and how to deal with pricing

• Pensions

• Employment Allowances

• Research and Development tax rebates

Our aim is to give you enough insight to help you identify, plan and resolve issues, adding value to your business.

To be eligible for the scheme you must be 

1. Up to date with your VAT returns and payments

2. Join by 21st June 2021

3. Have deferred VAT to pay

4. Pay your first instalment when you join and there after by direct debit