PLAN FOR 2026

I hope everybody is getting back in the swing of things after Christmas and the slow start of January.

We were inundated with self assessments in January and now getting back to concentrating on what 2026 has to offer.

Just before Christmas we reviewed our 2025 making a note of everything we achieved in the year.  We also made a note of what wasn’t so positive to avoid bringing that into 2026.

Then we put our heads together as a team to come up with a wish list plan for 2026

By doing this each year we find it really concentrates the mind into working on what is the most important for our daily business and personal lives.  Being able to achieve these wish list goals really motivates you to work that little bit harder and focus on what’s important.

We saw through 2025 a number of businesses still fighting to make a living.

We also saw a large number bucking the trend and growing in 2025.

Looking at the companies and individuals making money last year and the things that separated them from everyone else.    They had a full handle on the cashflow.   They remained thrifty with the money even when times were good.

Not allowing suppliers and staffing costs to get out of hand.   Not over financing with high interest loans.   They also had money spare to put money into their pension plans.   Saving into the future and saving tax at the same time.

We’ve got a large number of statutory changes outside of our control for 2026.   National insurance changes.   Making Tax Digital for Income Tax affecting property and business owners with turnover over £50,000, and ID Verification for Companies House affecting every Limited company on the Companies House register.    It’s all big operational changes that we’re all having to comply with, and completely out of our control.

So my biggest bit of advice for the forthcoming year 2026.

Make a plan both Business and Personal.  

What are your priorities for this year.  Write them down.  People who write down their goals and wishes are far more likely to achieve them over someone who doesn’t write anything down.

Mark off as you achieve them, give yourself a pat on the back, believe me yourve earned it.   You can always add to the list if you are doing really well.

Review your overhead costs.  Business and Personal

If your Amazon spend has gone extreme, or your supplier has put a big increase on you, shop around.  Or decide do I really need that item.

Save some money for a rainy day, put money into your pension

I am seeing a lot of 40 years plus clients with no long term savings at all.

Pay off that high interest credit card, by over paying over time, you save a lot of interest charges.

Do something fun on your days off.   It doesn’t have to cost money to do it.

Have some me time.

Wishing you all a successful and healthy 2026.

As the clock ticks towards 01 April 2024, businesses across the nation are bracing themselves for the significant minimum wage increase set to come into effect. With no accompanying support from governments in these challenging times, the burden falls on the shoulders of businesses to adapt and plan effectively.

The Rise of Minimum Wage

As with every year, April 1st marks a pivotal moment as the minimum wage sees a substantial increase. Workers aged 21 and over will be entitled to the National Living Wage where currently it was workers aged 23 and over. While the intention behind such adjustments is to uplift low-wage workers and tackle income inequality, the reality for businesses is starkly different. For many, this hike presents a formidable challenge, with limited government assistance.

Its a couple of weeks to get everything done and ready for the when the New Year starts up again

6 April 2017

The government have made a number of changes to taxation during the year so its good to have a plan to make sure you maximised your tax free allowances.

Check you have used up all of your tax code,   because once its gone its gone for good and starts  fresh again in April.   The tax code is currently £11,000 for the year for individuals.

Husband and wife you can transfer £1,000 from either partner to the higher earner, this is good for part time or if a partner doesn’t work.

Have you bought your equipment ready for the new year to start.  Think of new equipment as not a ill put that off until later but an opportunity be more efficient, speed up your work or even make it easier for you.

Capital Gains Tax allowances timing of when you sell an asset is key as theres £11,100 tax free allowance for each year this is additional to your normal income tax code.

Flat Rate Scheme is changing from April 2017 are you ready, it will be 16.5% payment over if you are a business that is mainly labour orientated.

Are you one of the many higher tax rate earners who is having to deal with the mortgage tax relief restriction.   Wear and tear allowance has now gone,  keep all of your receipts if you are replacing furniture or equipment in your rental house, you cannot claim without your documents.  It is replacement only, first year purchases are excluded now.

Again Child Benefit is restricted or even taken away if you are a higher earner over £50,000

Child Care Vouchers ceases at the end of April 2018, have you signed up to them its £55 per week tax free allowance which saves you tax and national insurance for income of less than £43,000 per annum.

Have you used your £15,240 ISA allowance it all starts again in April.

Don’t forget the dividend tax rules have changed dividends now attract 7.5% to basic rate if your dividends are over £5,000.   32.5% for anything over £43,000 make sure youre saving your tax money.

So get planning,  check these items if you missed any of these out of your routine this could be saving you money.

I am bringing up the balance sheet again as we have been seeing some sets of accounts coming into our business with insufficient information to be a credible balance sheet.

I am seeing far too many prepared using the cash accounting system. I know this is not the easiest of documents to understand when you’re reading a set of accounts so I wanted to tell you some of the differences between a good balance sheet, and one that has been thrown together as a last resort.

I have been preparing and reading this document for a number of years and have seen all shapes and sizes. Part of my training was to read ones prepared by the FTSE 100 companies, not recommended. The financial statements can be complex and lengthy.         But micro and small companies are done fairly simply so you don’t have to read 50 pages of detailed technical language.

Be sure that not only does the balance sheet contain information about the profit or loss you’ve just made during your trading year but has a number of components.

I would expect you to receive a detailed set of pages describing the different figures in the balance sheet. This doesn’t need to go to Companies House as small and micro businesses are abbreviated, but you should have a full copy that you can use for your business going forward, if you don’t you need to question this.

If you are going to sell your business or go to the bank to borrow money, you are going to need this important document. This is an accumulation of your whole trading history whether you’ve been trading for a year, or 50 years. A company that is 50 years old balance sheet will look different and may have complexities that a new business will not.

Components to expect.

Fixed Asset Register

There should be a summarisation of the fixed asset register detailing accumulative costs and deprecation and changes happening during the financial year. There should be a net book value at the end so you know the value of your assets.  Fixed assets are your machinery, vehicles, refurbishment, furniture etc.

Intangible assets

These can be patents, trademarks, goodwill. This needs to be highlighted in detail, with amortisation or not.

Debtors

This can be money in the bank Trade debtors, customers that owe you money Other debtors can be prepayments, accrued income, if the company has loaned money to a member of staff etc.

Creditors

Overdraft facility at the bank Trade Creditors, Suppliers you owe money to Taxation HMRC any of the taxes, Corporation tax, VAT, PAYE Other Creditors Accruals, invoices you havent received from a supplier, but paid, directors loan etc.

Long term liabilities

Can be bank loans, lease agreements, hire purchase. If these components are known to you and are not in your accounts, you must question this.

The balance sheet is a financial document that tells the reader the financial position of your business it is vital to be correct. It is even more important than a profit and loss, that only tells you one year timeframe.

Make your business a strong one, a weak set of information will not help you move forward, it can have the opposite affect and hold you back.

Its in your hands!

What to do with your business if things have quietened down over summer

This may not be affecting you, but a lot of businesses suffer at some point during the year from seasonality or the great British weather affecting the productivity of their business.

Ive worked in the travel industry where if the weather is too good the telephone stops ringing, but Boxing Day the phone lines are maxed out.

Manufacturing tend to have a shut down over Christmas etc.

Everybody seems to be on holiday in July and August!

This might be adhoc or happens the same time every year, you know its going to happen, so planning ahead for that potential sales fall is vital to keep the operation moving and generating income for when the good times come back.

Keeping a buffer in the bank account certainly helps, you may need to scale back for a short period of time.

But for an ever growing business you are not going to want to scale back you want to keep on going.

Increase the marketing, do a special offer to either get things moving again in the Autumn, or get things moving now. The choice is up to you, but you are going to have to do something about it. Sitting on your laurels will not generate that income.

Use the time to look at your operation, are there systems you can tighten up on, costs to trim down. Think efficiency all the time, if you can do it better, add value, or save some time, its all a good thing.

Or a topical word at the moment, Collaboration. Get together with your network, maybe a couple of you have connected skills, and can promote each other, or do an event together and share the proceeds. What have you got to lose.

The important thing is to not sit back and wait for it to come, you make it happen.

This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.