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.

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. 

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.

In a recent news story issued by the Department for Business and Trade a consultation was launched to crack down on the use of online “subscription traps”. The full story says:

 

“New proposals to crack down on subscription traps have been unveiled today as the government launches a consultation on measures to make it easier for consumers to get a refund or cancel unwanted subscriptions. 

 

“”Subscription traps” are instances where consumers are frequently misled into signing up for a subscription through a “free trial” or reduced price offer. In some cases, if the consumer doesn’t cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan. 

 

“It comes as new figures reveal consumers are spending billions of pounds each year on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes. Nearly 10 million of 155 million active subscriptions in the UK are unwanted, costing consumers £1.6 billion a year. 

 

“Subscriptions can be for anything from magazines to beauty boxes, with many subscriptions having complicated or inconvenient cancellation processes such as phone lines with long waits and restrictive opening hours that can leave consumers feeling trapped. 

 

“The consultation sets out proposals to make the refunds and cancellation processes simpler, with a requirement on retailers for greater transparency on their subscription programmes in a way that is proportionate to balance consumer rights without placing unnecessary burdens on businesses.”

 

It will probably be some time before the consultation publishes its findings, and further delays for legislation to be drafted and to complete the Parliamentary processes. But this announcement will be a welcome step, helping consumers challenge subscriptions to which they had no idea they were subscribed.

Recent legislative reforms have brought significant changes to how companies report profit and loss (P&L) details when filing accounts with Companies House. These changes, introduced under the Economic Crime and Corporate Transparency Act 2023, aim to enhance transparency, simplify the filing process, and combat economic crime. Here’s a short overview of these changes and when they come into effect.

Mandatory Filing of Profit and Loss Accounts

At present, small and micro-entity companies can opt to exclude their profit and loss accounts from public filings, submitting only a balance sheet and accompanying notes. 

Under the new regulations:

• All small companies, including micro-entities, will be required to file their profit and loss accounts with Companies House.
• This change makes essential financial data, such as turnover and profit or loss figures, publicly accessible. This ensures better-informed decisions by creditors, consumers, and other stakeholders.

Removal of Abridged Accounts Option

The option to file abridged accounts is being removed. Abridged accounts allow companies to submit condensed financial statements omitting certain details. Eliminating this option ensures consistency and a higher level of disclosure for all companies.

Directors’ Report Requirements

• Small companies must now file a directors’ report along with their accounts.
• However, micro-entities remain exempt from the requirement to prepare or file a directors’ report.

Transition to Digital Filing

Companies House is moving toward mandatory digital filing of accounts, requiring submissions through approved software. This transition, expected to be phased in over the next two to three years, aims to:

• Improve the efficiency and accuracy of filings.
• Align with broader digital transformation goals for UK companies.

When Will These Changes Take Effect?

While the Economic Crime and Corporate Transparency Act 2023 is already in force, the exact implementation date for mandatory P&L filing is yet to be finalised. The government has clarified:

• Accounts due from 1 January 2024 will not be impacted by these changes, providing businesses time to prepare.
• The effective date will be confirmed through secondary legislation and updates from Companies House.

Companies are encouraged to monitor announcements from Companies House to ensure timely compliance.

Implications for Small and Micro-Entity Companies

• Increased Transparency – mandatory P&L filing promotes transparency, enabling stakeholders to assess a company’s financial health more effectively.
• Compliance Obligations: Companies must be ready to update their financial reporting processes and use appropriate software solutions for digital filings to meet the forthcoming requirements.

Public Disclosure Concerns

The public availability of detailed financial information may raise concerns for some companies. However, this measure is designed to bolster trust and integrity across the corporate sector.

Next Steps for Businesses

To prepare for these changes, companies should:

1. Review Current Reporting Practices: Ensure they meet the new requirements.
2. Adopt Digital Filing Tools: Begin transitioning to software that complies with Companies House standards.
3. Monitor Announcements: Stay updated on secondary legislation and the confirmed implementation timeline.

Conclusion

The changes to profit and loss reporting at Companies House represents a significant shift towards greater transparency and accountability. Although the exact date for implementation remains unconfirmed, businesses should act now to align their processes with these upcoming requirements. By staying proactive, companies can ensure compliance and maintain stakeholder confidence in a rapidly evolving regulatory landscape.

Readers whose professional advisors deal with their filing obligations will be relieved that their filing processes will meet the new regulations. And as soon the secondary legislation is published – with the details of what will be required to file – you will be advised. Watch this space.