5 Tips to Close Your Financial Year with Confidence!
As the financial year draws to a close, businesses and contractors who run their own limited company face the critical task of wrapping up their accounts, ensuring compliance, and setting the stage for a successful year ahead. The Sterling Group, with decades of expertise in supporting agencies and contractors, is here to guide you through every step. Here are five essential tips to help you close your financial year with confidence:
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Submit Final Invoices Promptly
Ensure that all outstanding invoices are sent out well before your financial year-end. This helps you maintain positive cash flow and avoid any last-minute surprises. If you’re a contractor, check with your clients to confirm that all work has been signed off and payment terms are clear.
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Review Your Tax Deductions
Now’s the time to maximise your deductions! Go through your expenses meticulously and ensure you’re claiming everything you’re entitled to — from travel costs to home office expenses.
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Reconcile Accounts and Chase Payments
A thorough account reconciliation is key to spotting discrepancies and ensuring your financial records are accurate. Follow up on any overdue payments and resolve outstanding issues to start the new financial year on solid footing.
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Plan for Tax Payments
Understand your upcoming tax liabilities and set aside the appropriate funds. Whether it’s Corporation Tax, VAT, or self-assessment payments, knowing what’s due and when prevents unwelcome surprises. Our expert team can provide guidance on efficient tax planning and cash flow management.
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Set Financial Goals for the New Yea
r A new financial year is a fresh start! Take the opportunity to set realistic and ambitious financial goals. Whether it’s increasing your turnover, expanding your client base, or improving your savings strategy, having a clear plan in place will keep you focused and motivated.
Closing your financial year doesn’t have to be stressful. With The Sterling Group by your side, you can navigate the complexities of year-end accounting, and step into the new financial year with confidence and clarity.
Ready to make this your most successful financial year yet? Get in touch with The Sterling Group today and let’s make it happen!
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Welcome to our latest blog update! Here at The Sterling Group, we are committed to keeping you informed about the recent changes in the UK financial landscape that may affect our agencies and contractors. Let’s dive right into the key highlights.
A Fresh Perspective on Health Services
The Government has outlined an impressive £22.6 billion increase in day-to-day health budgets for the NHS and a further £1 billion boost to the capital budget over the next year. If you’re in construction or the health sector, the £1 billion health capital investment to address the backlog of NHS repairs and upgrades presents significant opportunities.
A Boost for Workers
The government has announced a 6.7% increase in the national living wage to £12.21 per hour. There will also be a phased increase in the national minimum wage for 18-20-year-olds to £10 per hour. For agencies and contractors, this change will need to be factored into payroll calculations.
Changes to National Insurance
To repair the public finances and help raise the revenue required to increase funding for public services, the government is taking the difficult decision to increase the rate of employer NICs by 1.2 percentage points to 15%. The per-employee threshold at which employers start to pay National Insurance will be reduced from £9,100 per year to £5,000 per year. These changes will apply from 6 April 2025.
An Update on Capital Gains Tax
The lower and higher rates of Capital Gains Tax are set to increase, from 10% to 18% and 20% to 24% respectively. Contractors should be aware of these changes, as they may impact financial planning strategies going forward.
Infrastructure Projects on the Horizon
Noteworthy for the construction sector is the allocation of funds towards transport projects, including TransPennine upgrades, east-west rail, and road network improvements. The HS2 project represents a significant investment and opportunity for businesses in the sector.
In conclusion, these changes present both challenges and opportunities for our agencies and contractors. The Sterling Group will continue to help navigate these changes and provide necessary support to ensure your business thrives in the evolving landscape.
Full details on the Budget can be found here
Stay tuned for our next blog post!
