As the UK tax year concludes on 5 April 2025, businesses must navigate several financial obligations and regulatory changes. The end of the tax year is a critical period for businesses, as it determines how profits, losses, and taxes are calculated for the previous 12 months. 

Here’s a look at how the tax year-end could affect businesses, the steps to take before year end and why Darcey Quigley & Co can provide invaluable assistance during this critical time. 

Steps To Take Before 5^th April: 

Review of Financial Health:

The tax year-end offers businesses a chance to review their financial health. Whether you’re a small business or a larger corporation, assessing the past year’s performance is crucial to identifying strengths and weaknesses. Understanding how your business has performed allows you to make informed decisions moving into the next financial year. 

Many businesses will find that this is a time to evaluate cash flow, profits, and losses, as these elements directly influence the taxes that will be owed. Understanding your financial situation before the end of the tax year enables you to implement strategies for reducing your tax liability. 

Prepare for Upcoming Parliamentary Changes:

Coming into effect from April 2025, there are adjustments to National Insurance contributions and an increase in the National Living wage.  Employers will see National Insurance rates rise to 15% on earnings above £5,000 per annum, an increase from the current rate of 13.5% applied to earnings above £9,100.  

This increase is anticipated to raise approximately £25 billion per year, representing one of the largest single tax increases in recent British history. This will be tough on businesses. Reports indicate major employers such as Tesco could face up to a £1 billion increase in annual NI contributions. Businesses should be aware of how this increase will affect them and the reduction in cash flow that will most likely come from this.  There are, however, strategies that the Darcey Quigley & Co team can support with to boost cash flow. 

Assess Cash Flow and Liabilities:

This is a pivotal time for businesses to assess their cash flow before the end of the tax year. It’s essential to ensure you’re on top of any outstanding invoices, and if you’re having trouble obtaining payments, consider outsourcing to third party debt collection. This is where support from the team at Darcey Quigley & Co should be an integral part of the credit control process. By taking the stress of troublesome late payments off your business, our team enables you to focus on other critical aspects of business management, such as setting future goals and strategic planning, which is particularly important during this transitional period. 

Plan for the Future: 

By outsourcing debt recovery efforts and consequently boosting cash flow, businesses can dedicate proper attention to setting meaningful goals for the upcoming tax year. This is an ideal time to evaluate growth strategies, identify potential investments, and assess how you might structure your business for long-term success.  

With the financial clarity that comes from resolving outstanding debts and understanding your true cash position, you can make more informed decisions about resource allocation, expansion opportunities, and potential tax-efficient investments before the new financial year begins. Establishing these strategic priorities now ensures your business starts the new tax year with clear direction and momentum. 

Read more here for 8 Ways to Improve Your Cash Flow: Key Strategies and Techniques for Business Cash Flow Optimisation. 

Why Partner with Darcey Quigley & Co? 

With 5th April approaching, recovering outstanding debts now can significantly strengthen your year-end financial position. Darcey Quigley & Co’s specialised B2B debt recovery ensures your business captures funds owed before the tax year closes – particularly important with National Insurance increases looming in April 2025. 

Our efficient telephone recovery approach allows your team to focus on other year-end priorities while we secure your outstanding payments professionally and effectively. By resolving these invoices now, your business can enter the new financial year with improved liquidity and a stronger foundation for growth.  

Next Steps: 

• Speak to a member of our team 
•  Use our free calculator to discover the costs involved in collecting your unpaid invoices, including potential late payment interest and compensation available.