Thanks to rising operational costs, the challenge of retaining skilled employees and supply chain issues, among many other matters, business owners have been forced to endure a turbulent few years. But, if you want a change for your business in 2025, you may be considering restructuring your company in order to improve the efficiency of your operations.
As experts in accountancy, we can help you re-assess and re-optimise your processes, streamlining how your business operates in order to maximise profitability. To find out how we can help your business, simply get in touch by phone or email and read through this helpful article that will suggest ways in which your company can restructure.
Why restructure your business in 2025?
We might still be in the early months of 2025, but we have been given some insight into what to expect later this year. Labour’s budget announced in October 2024, for example, presented plenty of tax increases and other considerations for British companies. Talking points from the budget that will be important to consider in 2025, include:
- An increase in National Insurance contributions for businesses.
- An increase in the National Living Wage.
- Business Asset Disposal Relief (BADR) is being reduced.
- An increase in Capital Gains Tax (CGT) rates for assets.
- Significant changes to Inheritance Tax.
- An increase in HMRC late payment interest rates.
These changes might give you that impetus to restructure your business in 2025, with the following areas being the most pressing to review.
Become more efficient with your taxes
Carrying out a full tax review of your business is one of the best ways you can become more financially efficient. As we’ve outlined in the tax changes that Labour presented in 2024, there’s plenty that your business needs to plan for, including the crucial increase of CGT for assets, so there’s no better time for a fresh audit of your operations.
By carefully considering each of these changes and working out how these taxes could impact you personally as well as your business, you can protect yourself from spending unnecessary sums of money.
Inheritance tax changes
Significantly higher rates of inheritance tax mean that you should consider adapting your plans in this area. A review of inheritance tax planning should be considered crucial with the multitude of changes on the horizon. Such changes include, but are not limited to, inherited pension pots and death benefits being subjected to inheritance tax in 2027 and Business Property Relief and Agricultural Relief being dramatically reduced.
Assess your financial position
Are your accounts all up to date? A reconsideration of what financial position your business is in will be crucial going forward into 2025.
Consider every inch of your business to better prepare you for the coming year. Such considerations could include a full evaluation of your stock (if you carry it), assessing whether you hold too much or too little, an analysis of your debt and a full assessment of your cash flow.
The best way to achieve this analysis is to carry out a comprehensive accounting audit. Need help doing this? We can help at Williamson and Croft with a full audit and assurance service.
Consider restructuring
If your business targets are quickly evolving, restructuring can be a great way to enact drastic changes. Helpful for businesses either in solid or struggling financial positions, restructuring can help you reduce costs by cutting overheads, improve your financial position by refinancing debt, improve your tax strategy and increase your general efficiency.
Need an audit to get started?
The best place to get started when considering becoming more efficient or taking on a full business restructuring is a full company audit. Our comprehensive business audit and assurance services help you do just this, utilising the latest cloud-based audit technology to ensure a thorough review that benefits your business.
Contact our team of specialists now to find out more about what we can do for you, no matter if you’re in the public sector, digital space or beyond.