In today’s ever-changing economic landscape, businesses must remain agile and innovative to thrive. One of the most effective ways to bolster resilience and ensure long-term success is by developing new income streams. Diversifying revenue sources not only provides financial stability but also opens up opportunities for growth and adaptability. 

Here are some key advantages of embracing this strategy.

1. Enhanced Financial Stability

Relying heavily on a single income stream can leave a business vulnerable to market fluctuations or unforeseen disruptions. Whether it’s a seasonal lull, changes in consumer behaviour, or economic downturns, businesses that depend on one primary revenue source are more exposed to risk. Diversifying income streams spreads this risk and ensures that a decline in one area doesn’t jeopardise the entire operation.

2. Opportunities for Growth

Introducing new revenue streams often leads to the exploration of untapped markets and customer segments. For instance, a retail business might expand into e-commerce, reaching customers beyond its local area. Similarly, a service-based company could create digital products, such as online courses or software, which provide scalable growth opportunities. These ventures can pave the way for innovation and strengthen a company’s competitive edge.

3. Improved Cash Flow

New income streams can help stabilise cash flow, particularly if the primary business line experiences seasonal or cyclical trends. For example, a landscaping company might offer snow removal services in winter. This supplementary income ensures a steady inflow of cash throughout the year, making it easier to manage expenses and invest in further growth.

4. Increased Resilience

Adapting to changing market conditions is essential for survival in today’s dynamic business environment. Developing new income streams allows businesses to remain flexible and pivot quickly when necessary. A diversified business model can weather unexpected challenges, such as supply chain disruptions or shifts in consumer demand, more effectively than a narrowly focused operation.

5. Leveraging Existing Resources

Businesses often possess untapped resources, such as expertise, assets, or customer data, which can be monetised in new ways. For example, a company with a strong brand reputation might generate additional revenue by licensing its name or offering consulting services. Leveraging these existing resources is often a cost-effective way to expand.

Final Thoughts

Developing new income streams requires strategic planning, but the benefits far outweigh the effort. By enhancing stability, fostering growth, and building resilience, this approach ensures a business can thrive in both good times and bad. It’s not just about survival – it’s about seizing opportunities to prosper in an unpredictable world.

The practice of making resolutions has roots in ancient Babylon, where people would make promises to their gods at the start of the new year, often to repay debts or return borrowed items. Similarly, the Romans made pledges to Janus, the god of beginnings, at the start of January-a month named in his honour.

In a business context, these historical practices mirror the modern-day planning cycle. Just as ancient societies sought to align their actions with the divine to ensure prosperity, businesses today engage in strategic planning to set the tone for the year ahead. While the promises made by the Babylonians and Romans were steeped in religion and ritual, the essence of introspection and goal-setting persists in corporate boardrooms.

Why Resolutions Matter for Businesses

New Year’s resolutions in the business world typically translate into setting strategic goals for the upcoming year. These resolutions may include improving financial performance, enhancing customer satisfaction, expanding into new markets, or adopting sustainable practices. Here’s why these annual commitments are relevant:

1. Reflection and Learning

The start of a new year provides a natural point for businesses to reflect on past achievements and challenges. Reviewing key performance indicators (KPIs) and identifying areas for improvement can reveal valuable insights. This process ensures lessons from the past year are carried forward, allowing businesses to refine their strategies.

2. Renewed Focus

In the hustle and bustle of daily operations, long-term goals can sometimes be overshadowed by short-term tasks. Setting resolutions helps businesses refocus on their core mission and priorities. For instance, a company might resolve to enhance employee engagement, knowing that motivated staff drive better results.

3. Opportunity to Innovate

Resolutions often inspire fresh thinking. Whether it’s committing to digital transformation, launching a new product, or revamping marketing strategies, businesses can use the momentum of the new year to innovate and stay competitive.

4. Strengthening Stakeholder Relationships

Publicly communicating New Year’s resolutions-such as pledging to reduce carbon emissions or improving community engagement-can build trust with stakeholders. These commitments demonstrate that a business is forward-thinking and values its broader impact.

Making Resolutions That Stick

While resolutions can be powerful, many falter due to a lack of planning or unrealistic expectations. For businesses, ensuring resolutions are actionable and measurable is critical. Adopting the SMART framework-specific, measurable, achievable, relevant, and time-bound-can significantly increase the likelihood of success.

For example, instead of vaguely resolving to “improve profits,” a business could aim to “increase revenue by 10% through expanding online sales channels by the third quarter.” Such clarity provides direction and accountability.

The Broader Implications

Incorporating resolutions into business practices can foster a culture of continuous improvement. When leaders model goal-setting behaviours, it encourages employees to adopt a growth mindset, boosting overall organisational performance.

Conclusion

While New Year’s resolutions may have ancient origins, their application in modern business remains highly relevant. By reflecting on past performance, setting clear objectives, and fostering innovation, businesses can harness the power of this tradition to drive success. As January rolls around, making thoughtful resolutions could be the first step toward a prosperous year ahead, and if you need help framing your business resolutions, pick up the phone, we can help.

People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.

The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced.

But whether selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or quietly offloading an unwanted Christmas present or two – absolutely nothing has changed for online sellers.

The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax and whether people are selling personal items on eBay, renting homes out on Airbnb or delivering takeaways through Just Eat – no tax rules have changed. 

Those who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

You may need to file a tax return if:

The sharing of sales data does not automatically mean the individual needs to complete a tax return. However, those who may need to register for Self-Assessment and pay tax, include those who:

• buy goods for resale or make goods with the intention of selling them for a profit;
• offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website; and
• generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.

In a recent press release issued by the Ministry of Housing, Communities and Local Government, new legal changes to empower councils to auction off leases for long-term empty lots was released. Here’s what the changes will provide.

High streets are set to be revitalised as the government hands councils new powers to tackle the scourge of empty shops. 

From Monday, 2 December, local authorities will be able to auction off leases for commercial properties that have been empty for long periods, helping bring business back to the high street and drive growth across the country. 

High Street Rental Auctions will create a ‘right to rent’ for businesses and community groups, giving them access to city, town and village centre sites. The changes will stop disengaged landlords sitting on empty lots for more than 365 days in a 24-month period, before councils can auction a one-to-five year lease. 

With growth a key mission for the government, it is committing over £1m in funding to support the auction process, which will create jobs for local people and boost trade by bringing local businesses back to the heart of our communities. 

Local Growth Minister Alex Norris said: 

“High streets lie at the heart of communities the length and breadth of this country. But in many areas, they are not what they used to be. 

“Small businesses need our support and that’s why we are creating a ‘right to rent’ so that high street lots that have been left empty for far too long can be brought back to life. We want shops and shoppers back on the high street – and that’s what these changes will help to bring.” 

Four local authorities will lead the way as enthusiastic Early Adopters of the new high streets powers. Bassetlaw, Darlington and Mansfield councils will set an example for other local authorities across England, while Bournemouth, Christchurch and Poole Council will join the Early Adopters programme in an advisory role as critical friends. Additional local authorities have been invited to join the programme at a later stage. 

Originally introduced by the Levelling Up and Regeneration Act 2023, the High Street Rental Auctions powers came into force after legislation was laid in November. 

Before putting a property to a rental auction, a local authority must first seek to resolve the vacancy by engaging with the landlord. 

High Street Rental Auctions form part of the government’s wider commitment to support high streets and small businesses, as part of work to drive economic growth in all parts of the country, break down barriers to opportunity, and fix the foundations of the economy. The changes come ahead of Small Business Saturday this week, a major event in the commercial calendar which the government is proud to support. 

HMRC is encouraging customers to be prepared and have all the information they need ready to file their Self-Assessment tax returns early, so they can avoid any last-minute stress and know what they owe sooner. HMRC has a range of online help and support and YouTube videos to assist anyone completing their return, including first-time filers.

Scams advice from HMRC. Remember to:

Protect

• criminals are cunning – protect your information
• take a moment to think before parting with your money or information
• use strong and different passwords on all your accounts so criminals are less able to target you

Recognise

• if a phone call, text or email is suspicious or unexpected, don’t give out private information or reply, and don’t download attachments or click on links
• check on GOV.UK that the contact is genuinely from HMRC
• do not trust caller ID on phones. Numbers can be spoofed

Report

• if you’re unsure about a text claiming to be from HMRC forward it to 60599, or an email to phishing@hmrc.gov.uk. Report a tax scam phone call on GOV.UK
• contact your bank immediately if you’ve had money stolen and report it to Action Fraud. In Scotland, contact police on 101
• by reporting phishing emails, you help stop criminal activity and prevent other people falling victim

The government launched its national campaign ‘Stop! Think Fraud’ earlier this year. Backed by organisations across law enforcement, tech, banking, telecoms and the third sector, a new website was created with advice on how to stay safe online. It can be found at www.gov.uk/stopthinkfraud

The limit on Income Tax reliefs has applied since 6 April 2013. This measure was the first time a limitation to existing reliefs had been introduced.

The cap is set at the greater of 25% of income or £50,000. This limit applies to the total amount of relevant reliefs claimed in a tax year and is calculated individually for each tax year in which relief is claimed.

The main reliefs subject to this limit are:

• trade loss relief against general income and early trade losses relief claimed on the self-employment, Lloyd’s underwriters or partnership pages;
• property loss relief (relating to capital allowances or agricultural expenses) claimed on the UK property or foreign pages;
• post-cessation trade relief, post-cessation property relief, employment loss relief, former employees deduction for liabilities, losses on deeply discounted securities and strips of government securities claimed on the additional information pages;
• share loss relief, unless claimed on Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) shares claimed on the capital gains summary pages; and
• qualifying loan interest.

The limit applies in addition to other provisions that restrict the amount of relief that can be used to reduce total taxable income for the year. The limit does not affect the amount of trading losses which may be claimed against capital gains.

HMRC’s guidance explains, with supporting examples, how the limit is calculated, the measure of income used to calculate the limit, which reliefs are subject to the limit, and how different circumstances are treated. As the 2024-25 tax year begins to draw to a close, taxpayers should seek to ensure that wherever possible, they structure their finances to avoid the cap.

The Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding the tax rules or because of deliberate tax evasion. Participation in the campaign is open to all residential property landlords with undisclosed taxes. The campaign is not suitable for those letting out non-residential properties.

Landlords who do not avail of the opportunity and are targeted by HMRC can face penalties of up to 100% of the tax due together with possible criminal prosecution. Taxpayers that come forward will benefit from better terms and lower penalties for making a disclosure. Landlords that make an accurate voluntary disclosure are likely to face a maximum penalty of 0%, 10% or 20% depending on the circumstance, and these costs would be in addition to the tax and interest due. There are higher penalties for offshore liabilities. 

There are three main stages to taking part in the campaign are notifying HMRC that you wish to take part, preparing an actual disclosure and making a formal offer together with payment. The campaign is open to all individual landlords renting out residential property. This includes, amongst others, landlords with multiple properties as well as specialist landlords with student or workforce rentals. Once HMRC have been notified of the wish to take part in the campaign, landlords usually have 90 days to calculate and pay any tax owed.

HMRC’s guidance for landlords wishing to make a disclosure has recently been updated to provide further information about who is affected by the Let Property campaign and how to notify HMRC.

The tax treatment of double cab pick-up vehicles (DCPUs) has been clarified as part of the recent Budget announcements. This follows a chequered history of the tax treatment of DCPUs after a 2020 Court of Appeal judgment and after the previous government reversed its plans to overhaul the tax treatment of these vehicles.

DCPUs with a payload of one tonne or more will be treated as cars rather than goods vehicles for the purposes of capital allowances, benefits in kind, and some deductions from business profits. These changes will take effect from 1 April 2025 for Corporation Tax, and 6 April 2025 for Income Tax. This means that going forward the vast majority of DCPUs equally capable of transporting passengers or goods will be categorised as cars. This shift could lead to higher tax liabilities for many businesses, including increased Benefit in Kind and National Insurance costs. Additionally, the change in vehicle classification could also impact the tax obligations of employees.

For expenditure incurred before 1 April 2025 for Corporation Tax and 6 April 2025 for Income Tax the existing capital allowances treatment will apply to those who purchase double cab pick-ups before April 2025. Transitional benefit in kind arrangements will apply for employers that have purchased, leased, or ordered a DCPU before 6 April 2025. They will be able to use the previous treatment, until the earlier of disposal, lease expiry, or 5 April 2029.

The definition of DCPUs with a payload of less than one tonne has not changed and these vehicles will continue to be classed as cars as has historically been the case.

There are specific rules regarding the liability to Inheritance Tax (IHT) on gifts made during a person’s lifetime. In most cases, gifts made during a person’s life are not taxed at the time they are given.

These lifetime gifts are referred to as “potentially exempt transfers” (PETs). The gift becomes exempt from IHT if the giver survives for more than seven years after making the transfer, commonly referred to as the seven year rule. There were expectations that this rule might have been changed as part of the Budget measures, but no changes were made.

If the giver dies within three years of making the gift, the IHT treatment is as if the gift was made upon death. If death occurs between three and seven years after the gift, a tapered relief applies.

The IHT rates on the amount exceeding the IHT nil-rate band are as follows:

• 0 to 3 years before death: 40%
• 3 to 4 years before death: 32%
• 4 to 5 years before death: 24%
• 5 to 6 years before death: 16%
• 6 to 7 years before death: 8%

If you give away an asset but continue to benefit from it, this is considered a “gift with reservation,” and the value of the asset will still count towards your estate. Examples of gifts with reservation include:

• Giving your home to a relative but continuing to live in the gifted property.
• Giving away a caravan but still using it for holidays without charge.
• Donating a valuable painting but still displaying it in your home.

           1 December 2024 – Due date for Corporation Tax payable for the year ended 28 February 2024.

           19 December 2024 – PAYE and NIC deductions due for month ended 5 December 2024. (If you pay your tax electronically the due date is 22 December 2024).

           19 December 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2024. 

           19 December 2024 – CIS tax deducted for the month ended 5 December 2024 is payable by today.

           30 December 2024 – Deadline for filing 2023-24 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2025-26.

           1 January 2025 – Due date for Corporation Tax due for the year ended 31 March 2024.

           19 January 2025 – PAYE and NIC deductions due for month ended 5 January 2025. (If you pay your tax electronically the due date is 22 January 2025).

           19 January 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2025. 

           19 January 2025 – CIS tax deducted for the month ended 5 January 2025 is payable by today.

           31 January 2025 – Last day to file 2022-23 self-assessment tax returns online.

           31 January 2024 – Balance of self-assessment tax owing for 2023-24 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with                  HMRC. Also due is any first payment on account for 2024-25.