Budgeting lets businesses bring the love on Valentine’s Day

Valentine’s Day is a day to celebrate love by taking time to show how much you care.

Business owners need to treat their companies with tender love and care so that they can continue to flourish in the coming months and years.

If you feel that the spark has faded, it might be time to reassess your financial position.

What support do businesses need with their finances?

With a new tax year on the horizon, businesses need to be aware of the upcoming changes that are likely to increase the financial pressure they are already struggling with.

Both the Autumn Budget and the Employment Rights Act have set up additional administrative obligations and increased costs that will need to be managed effectively.

The one that is likely to have the greatest impact on businesses is the increase in the National Living Wage (NLW) and the National Minimum Wage (NMW).

From April 2026, the increase in employee wages includes:

• NLW (for 21 and over) – £12.71 per hour (up 4.1 per cent)
• NMW for 18-20 year olds – £10.85 (up 8.5 per cent)
• NMW for 16-17 year olds and apprentices – £8.00 per hour (up 6 per cent)

Even for employers that currently pay above the NLW, they should be aware that employees may be expecting similar pay increases in the spirit of wage fairness.

This is likely why this year is seeing another sharp jump to the NLW and NMW, but that is little comfort for businesses already struggling.

Along with higher wages, employees will also be entitled to Statutory Sick Pay (SSP) for the first day of illness and the Lower Earnings Level (LEL) is being removed.

This will mean that nearly every employee will be able to claim SSP a lot sooner than before, so payroll records will need to be able to dynamically handle it.

Even for businesses that are not overly concerned with employee costs, the changes to business rates may mean that operational costs continue to increase across the board.

All of this is against the backdrop of ongoing challenges to the international economic situation that is causing a lot of uncertainty with global trade.

When the global economy struggles, it can impact even wholly domestic businesses.

Can you bring back the spark for your business?

It is believed that absence makes the heart grow fonder, so it could be worth getting some distance from your finances.

This means leaning on your team of accounting experts and letting them help you to understand how to face the year ahead.

Getting a good control over your budget and knowing what administrative responsibilities await you can ensure that you can feel the spark in your business once more.

We will help you rekindle your passion for business, so speak to our team today.