Keep on keepin’ on
It’s a season of economic contradictions at the moment, but as a business owner, the key is to hold fast, says Business Control’s Richard Starkey. Opinions about the strength of the market are everywhere, but what’s true for one company isn’t true for all. The only constant is to keep on keeping on…
As we’re all painfully aware, we continue to live through an unprecedented time of change and upheaval. Inflation has reached record levels, domestic gas and electricity prices are through the roof, not to mention the shortage of labour and basic wage increase. It’s a perfect storm.
According to many media sources, the British economy was sunk long ago. Recession was a done deal… but then the economy grew (slightly) last month. And here at Business Control all of our key clients are busy – “flat out” is the phrase we’re hearing a lot.
The contradictions were particularly keen when it came to Christmas predictions – in December, multiple reports said it was expected to be the darkest retail landscape the UK had seen for a long time. And yet, we've had financial reports that Sainsbury's upped its profit expectations for the year after a record Christmas. And Tesco also enjoyed a bumper Christmas trading period in 2022. So what’s driving this disconnect?
From where we’re sitting
Aside from strikes knocking back the country’s services, when it comes to the commercial landscape, the UK isn’t looking too bleak. Having said that, of course we understand that many people are still having tough times with rising costs of energy, food and consumer goods, but a supposedly struggling economy doesn’t seem to be impacting business as much as news outlets and forecasters seemed to suggest it would.
The companies we work with are busier than ever. Of our 60 largest clients, there isn’t a single one that’s struggling.
So is it a winter of discontent? It doesn’t look that way. It is a winter of difficulty in some ways, but it’s a win/win when it comes to potential for growth and positive thinking.
Of course, as a business owner, you’ll want to continue to keep a close eye on cashflow (double down on your efforts as we head into spring) and besides that, push on with business as usual and make 2023 a really super year.
With this in mind, here are a few things to remember over the next couple of months.
Insider tips
- Capital allowances
If you've got some cash left over in the budget and you want to spend some on a capital item, do it before the end of March; the enhanced annual investment allowance will end on the 31st. This applies to most plant and machinery items.
More detail here, including how to claim.
- Building up reserves
What about money in the bank? Now’s the time for businesses that are doing well to be building up their reserves. Three to six months’ worth of reserves is a good benchmark.
An adage that we use at Business Control is to have three months’ payroll in the bank. But this is an ideal rather than a unbending practice, strive to do that but don’t worry if you don’t get there, it’s a goal not a given.
Dates for the diary
- Self-assessment tax returns
In case it slipped your mind, the deadline for self-assessment tax returns has now passed (31st January). If you need help, click on the link below.
For more information, head over here.
- Spring Budget
On 15th March there will be updates on tax changes, the Energy Bill Support Scheme, cost of living support and generally more clarity on the changes that were announced in the Autumn statement. - Energy bill support set to end
The current Energy Bill Relief Scheme will come to an end on 31st March, with a new scheme offering discounts rather than a fixed price coming into effect in April.
Stay tuned for updates.
All in all, our take-away this month is continue to do you. Cut out the noise and just keep doing business the way you know best.
Check out the rest of our blogs periodically to get the very latest insight and information from the Business Control team.
