Businesses come in all shapes and sizes. They all have their own patterns and cycles. This is a very busy time for us but I have often said that lawyers go to sleep mid-December and wake up again mid-January. Now you may be a lawyer and you may feel that this is a gross (and unfair) generalisation. However, in the run up to Christmas and throughout January, we are chasing deadlines. Not sure lawyers, unless they are involved in tax, find themselves in the same boat.

Hospitality businesses will feel these cycles very keenly. You may have been quite quiet through October and November, but you will be manic in the run up to Christmas and possibly New Year, and then be dead for the next few months. Construction will be working, subject to weather up to Mad Friday, then party! And back in the New Year.

We are all different. Many years ago, there was a proposal to make the self-assessment deadline 31 October. Not many accountants agreed with me that this was a good idea. We would have had a pretty manic summer but personally I liked the idea of being able to properly enjoy Christmas. Before Self-Assessment we used to shut down for Christmas and New Year, and were able to properly relax and enjoy ourselves. Are we heading back to these days?

The current deadline of 31 January means that many people do not think about their tax returns and their accountants work load until mid-January or later. Some accountants actually charge a premium for this last minute work. Some of you maybe think we charge enough already!

Anyway, in a little over a year, we will have MTD (Making Tax Digital) for Income Tax. You can relax meantime if you are a company. Once this comes in we will be into quarterly reporting of trading results and a load of new filing deadlines and regulations that will impact on most sole traders and landlords. It’s been postponed a few times but HMRC have confirmed that this time it is going ahead.

For most businesses, MTD will not be that bad. It is just going to be a case of getting used to the new regime. The tax system is constantly evolving and likely to continue to do so as technologies and tax policies change. We have had MTD for VAT. We are weathering the effects of Basis Period Reform. MTD for Income Tax is just the next step. In all probability, it will mean that a lot more businesses will want help from their accountants, and we are getting ready.

The only constant is change! It affects every aspect of virtually every business. Technology creates many new markets and opportunities as well as revolutionising the processes of many existing businesses. Whether it is communications, marketing or processing, technology is here to stay and will continue to develop. Is this exciting or depressing? I think it is very exciting and I look forward to seeing what comes next. I would not want to go back to the old ways.

But there are always some negatives. Technology also brings opportunities for those wanting to steal our information of raid our bank accounts. There are so many scam stories circulating just now. It is quite scary, but you have to be vigilant. I have no doubt there will be all sorts coming around over the festive period.

One which we expect to surface again as we approach the Tax Return filing deadline is emails purporting to come from HMRC saying you either owe tax or can claim a refund, and in either case putting pressure on you to respond. But don’t! It’s almost certainly a scam. If in doubt contact us. We have a nose for these things.

So, it is December. It’s the last month of our trading year. What will 2025 hold? Now, that’s an interesting question. We have a few things planned both business and pleasure. What about you?

Alan E Long

The Long Partnership

07770 738770