Six New Year’s resolutions for your business

The start of a new year is the perfect time to review all areas of your business. By doing this you can work out how to make improvements and prepare for any potential challenges over the next 12 months. 

The New Year’s resolutions for businesses that we previously shared still apply, but here are six more to add to your list.

Consider your business structure 

If you are operating as a sole trader, this could be the year to consider switching to a limited company.  

Unlike sole traders, a limited company is a separate legal entity registered at Companies House, so your personal assets are protected.

Going limited can also increase your business' credibility in the market and help to protect your business name as your brand grows.

If you plan to access funding, being a limited company can give you greater borrowing power and you may be able to access more money from lenders and investors.

Limited companies aren’t suitable for all situations so you should speak to your accountant for personalised advice. Our article on Sole trader Vs. Limited company - which is better can help you understand what to consider before you have the conversation with your accountant. Our guide to UK company formation will also be useful.

Review your goals and set new objectives

To help you make effective decisions and enjoy the business growth that you want, you should set goals and objectives. If you created goals for your business last year, the new year is a good time to review them and check you have achieved what you intended.

Common goals include:

• increasing profit margins by a specific percentage,  
• driving up sales by a target amount,  
• boosting customer satisfaction,  
• increasing your business’ market share
• improving brand awareness

Review each existing goal and check whether it has been met or is on track to being achieved. For example, if you hoped to improve profit margins but have failed to do so, you could review your business costs and make reductions. Our guide to boosting your business' profits can help you too. 

Embrace Artificial Intelligence 

Artificial Intelligence (AI) tools can be essential in your business to assist you in performing tasks and improving efficiencies.

Since ChatGPT arrived at the end of 2022, it has made global headlines and led to a huge conversation around the potential of the technology to transform society and the world of work. 

Developments in AI are moving fast and the new year is a good time to consider how the available tools could benefit your business.  

Increased productivity and efficiency is a key advantage of AI as the tools can automate and improve many business tasks including content creation, transcription and customer service communication. 

There are downsides though, with concerns around mistakes and inaccuracies, as well as worries related to privacy, bias, the storing of personal data and cyber security.  

Our guide on How to transform your business with AI provides a greater insight into how you might benefit.

Improve your tax planning 

There are various tax planning actions you can take to reduce your tax bill and boost your cash flow. Ways to do it include: 

• Claim allowable expenses: These are costs that are “wholly and exclusively” for the purposes of running your business that can be deducted from your taxable income. Our guide on expenses for limited companies and top expenses for your tax return offer examples on what expenses you may be able to claim.
• Make pension payments: Sole traders and limited company directors can benefit from tax relief by paying into a pension.
• Claim the Employment Allowance: Eligible employers can reduce their annual National Insurance liability with Employment Allowance.

Boost your sustainability  

Sustainability is an increasingly important issue for businesses. Adopting more sustainable practices isn’t just about environmental benefits, it can give you a commercial advantage too.

Many consumers consider the environmental and social impact of a business before purchasing a product or buying a service, so being sustainable can mean more sales. 

Ways to improve your business’ sustainability include tackling your energy use, reducing waste, using sustainable materials and adopting greener transport methods. 

Read our in-depth guide on how sustainability can benefit your business for more advice and tips.

Donate to charity

Donating to charity let's you give something back. Giving to a local charity can help your local community and is a lovely way for businesses to show it's appreciation for stakeholders. Through gift aid, individuals that make donations to charity may be able to obtain higher rate tax relief, and companies can include the donation in their accounts and company tax return and obtain corporation tax relief. Read more in our article on charitable donations and tax relief.

Give your business a head start today 

If you need help or advice with the financial aspects of running your business, call TaxAssist Accountants on 0800 0523 555 or complete our online enquiry form.

Last updated 6 Dec 2023 | First published 6 Dec 2023

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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