Happy New (Tax) Year! Resolutions to keep your finances fit and healthy as you grow your business
It may seem strange to be wishing you a ‘Happy New Year!’ at the beginning of April, but if you run a business then it’s a greeting you might especially appreciate.
6th April heralds the beginning of a brand-new tax year, and even though you’re unlikely to be popping bottles of champagne in celebration, you may want to take advantage of the opportunity to make some finance-related new year’s resolutions, keeping both your business and personal funds in perfect shape.
Here at Rickard Luckin’s Small Business Unit, dedicated to providing bespoke support and advice for start-ups and SMEs, we’ve noticed that a common issue for new business owners tends to be that they will neglect their personal finances as they concentrate on growing their ventures.
Business success is exhilarating and addictive, so it’s understandable that if you’re just starting out, you’ll want to channel as much of your time and energy into your entrepreneurial vision. However, even if your business is doing well, for maximum sustainability you still need to focus on the here and now of everyday living expenses.
With this in mind, I’ve come up with some resolutions you may want to consider as we head into this brand-new tax year – and the best thing about them is there’s absolutely no need to start a new diet or exercise regime!
Start with a budget plan
The best position from which to consider your finances is an informed one. You probably already know exactly how your business is performing financially, but it’s just as important to ensure you know how much money you need to live your daily life.
I recommend you begin this new tax year by making a budget plan, so you know exactly what your living costs are, and how much you might be able to afford to save for your future.
Consider a new Lifetime ISA (LISA)
With this new tax year comes a new opportunity to save, if you’re lucky enough to be under forty. Designed to help you buy your first home or to fund your retirement, the LISA is a tax-free wrapper that allows you to invest up to £4,000 per year in cash savings or stocks and shares investments, with a 25% bonus from the Government on the funds you put in.
Should you or your company contribute to a private pension?
This is a question we’re often asked at the Small Business Unit, and my response is always the same: yes, but only if you can afford it.
Accountants have a reputation for always wanting to be cautious, advising their clients to save as much as they can for a rainy day. However, responsible saving is dependent on how much money you’re actually able to spare, after you’ve taken care of the need to live as best you can in the present day.
If you don’t have available money to save, then I would advise making a resolution not to save or invest until your financial position changes.
Bespoke financial advice from Rickard Luckin
Of course, financial advice should always be tailored to your personal needs, and our expert services at Rickard Luckin aren’t simply limited to business advice and support. We can also help you arrange your personal finances so that you can stay in control of your life and work. Simply contact us here to arrange an appointment with our friendly team.
And of course, our Small Business Unit is ever on hand to work in partnership with you as you grow your company. Simply contact one of our dedicated team here.