With over 25 years of experience advising individuals on personal and business matters, Jo Surley, Personal Tax Director at Cottons Group, brings a wealth of knowledge and insight to the table. She’s worked with major accountancy firms and high-profile clients, so her expertise in nav- igating complex tax matters is second to none. Here, Jo discusses one of the most crucial elements of both personal and professional life – planning:
If you know me personally, you’d probably say I’m not much of a planner outside of work. I like to go with the flow, adapting as things come my way. But when it comes to business and personal tax matters, my approach couldn’t be more different. Over the years (let’s not talk about how many – it’s a little humbling), I’ve learned that planning is essential. It’s never too early to start thinking about the future. The sooner you begin, the more prepared and focused you can be to achieve your goals.
It’s easy to get caught up in the day-to-day hustle and forget to step back and consider the bigger picture. I often remind my son that small, consistent efforts now can prevent bigger challenges later. Whether you’re aiming for financial security, running a successful business, or giving back to the community, a well-thought-out plan helps you stay focused and work more efficiently.
Many of us feel too busy to plan ahead, but taking just a little time to map things out can actually give you more time in the long run. A good plan can lead to a better work-life balance, preserve your family’s wealth, grow your business, and motivate your team. Time is one of our most valuable resources, and using it wisely is critical.
Planning for what truly matters
Dedicating an hour or two to step away from the daily grind and look at the bigger picture can give you a fresh perspective or validation that you’re on the right track. Planning doesn’t just help with immediate goals – it can also reveal opportunities or risks you hadn’t considered. As the saying goes, ‘you don’t know what you don’t know’. A trusted adviser can help you see beyond the surface, focusing not just on tax returns and accounts, but also on your broader personal and business objectives.
Here are a few planning points worth considering:
- Inheritance Tax – Let’s face it, none of us likes to think about death, but it’s an inevitable reality. With recent speculation about potential increases in inheritance tax, it’s worth understanding your current exposure. Are you prepared? Mitigating your inheritance tax position could involve updating your will, taking out insurance, or making other long-term plans. Any steps you take should align with your broader goals, whether they involve protecting your wealth, distributing assets, or something else entirely.
- Staff Motivation – Are your staff motivated to help your business achieve its goals? It’s easy to take employees for granted until they leave, and only then do we realise how crucial they were. Replacing staff is both time-consuming and costly. Assessing staff engagement and making small changes, like offering more autonomy or revisiting remuneration packages, can significantly improve morale and retention.
- Exit Strategy – Are you planning to exit your business in the next 10 years? If so, have you considered your succession options and the value you’re aiming for? These factors can guide your plan- ning and help you take the necessary steps to ensure a smooth transition when the time comes.
- Rewarding Key Employees – Do you have key employees who are critical to your business’s growth? You might consider implementing an Enterprise Management Incentive (EMI) share option plan. This approved scheme allows selected employees to acquire shares in your business when certain conditions are met, aligning their incentives with the company’s success.
The long-term benefits of planning
The benefits of planning ahead depend on your unique circum- stances and goals, but I can say this from experience – no one ever regrets taking the time to reflect or ask for a bit of guidance. In fact, most people wish they’d started sooner. Planning helps ensure that you’re not just reacting to immediate concerns but also proactively preparing for future opportunities and challenges.
It’s also important to remember that a plan isn’t set in stone. Regular reviews and adjustments are necessary as your circum- stances, objectives, and even the economy, change over time. The key is to take that first step – to reflect on what truly matters to you and your business.
If you’d like to discuss your individual or business circumstances, I’m always happy to chat. Even better, why not join me in person on November 6 at cinch Stadium at Franklin Gardens? I’ll be leading a debrief on Rachel Reeves’ Autumn Budget and its implications for personal tax, along with my colleagues at Cottons Group.
Find out more about Cottons Group at www.cottonsgroup.com
