Make More Profit

February 2025 Edition

Hi there,
Welcome to your February dose of business insights! Packed with useful updates, this update will help you stay ahead of the curve.

Inflation Dips to 2.5%—What’s Next for Businesses?

Good news: Inflation dropped slightly in December! While it’s just a nudge—from 2.6% to 2.5%—it’s enough to spark talk about potential interest rate cuts.

Could rate cuts be a win for your business?

If you’re managing loans or planning to borrow for growth, a rate cut could lighten your financial load. But don’t pop the champagne just yet—rate cuts aren’t guaranteed. So, keep a close eye on the numbers, plan for multiple scenarios, and let us help you stay prepared.

April’s Cost Pressures Are Around the Corner

Inflation might be easing, but payroll costs are heading up. Brace yourself for:

• Rising wages: The National Living and Minimum Wages are set to increase.
• Higher Employer NICs: These changes will squeeze margins further.

Now’s the time to:

✔️ Fine-tune your cash flow forecasting.
✔️ Consider a smart pricing strategy.
✔️ Boost efficiency with tech and streamlined processes.
✔️ Plan ahead for wage increases and staffing needs.

New Import Rules: Safety & Security Declarations

From January 31, 2025, goods coming into Great Britain from the EU need entry summary declarations. Sounds tricky, but HMRC has made it simpler: fewer fields to fill out and clearer guidelines.

Need help with this? We can guide you through the process and keep your imports running smoothly.

Stay Compliant: Right to Work Checks

The crackdown is on! Recent immigration enforcement shows the importance of proper checks. Employers caught hiring individuals without the right to work face steep fines and reputational damage.

Here’s your checklist for staying compliant:
✔️ Verify original documents.
✔️ Confirm authenticity.
✔️ Keep records.
✔️ Use the Home Office’s online service for non-UK nationals.

Not sure where to start? Let us help you get it right the first time.

Tax Planning Before Year-End = Smarter Finances

As the 5 April tax year-end approaches, a little planning could save you a lot of money. Here’s where to focus:

• Capital allowances: Claim tax relief on equipment and machinery investments.
• Pension contributions: Reduce taxable profits and boost employee morale.
• R&D tax credits: Innovation could unlock significant savings!

Get ahead now to maximize savings and reduce tax stress later.

VOA Suspends Business Rates Agents—Stay Vigilant!

The Valuation Office Agency has suspended three business rates agents due to suspected breaches of standards. If you’re working with an agent, beware of red flags like upfront fees or pressure tactics.

Remember: You don’t need an agent to handle business rates—VOA offers free online tools. Want guidance? We’re happy to help you navigate it all.

Need more details on anything above? Give us a ring or drop us an email—we’re always happy to chat. Let’s make February a month of growth and preparation for your business!