Running a business can often feel like navigating a maze, and right now, some of those walls are getting higher, especially with the latest UK tax rules. Starting in April 2025, you’ll be paying more for each employee due to the government’s increase in National Insurance, and this extra cost kicks in sooner than previously planned. This change will affect every member of your team, and while some businesses like shops and restaurants will still see some support with property taxes, other tax benefits are coming to an end.
What’s changing about Business?
If you’re thinking of selling your business or some big assets, the tax you pay on those profits is going up. This is happening in stages over the next couple of years. If you’re considering selling your business or significant assets, you need keep in mind that the tax on profits from these sales will be increasing in the coming years. When it comes to company profits, it’s important to remember that if your profits exceed £250,000, you’ll be paying a
25% corporation tax. Smaller businesses still get a lower rate, but it’s something to keep in mind.
With businesses of all sizes facing some big shifts, now’s the time to get smart about your spending. Knowing how to navigate these changes is the first step towards making better decisions about your current expenses and overhead costs.
This blog is your roadmap to finding 4 smart ways to trim those costs, helping your business run smoothly despite everything happening. Saving money doesn’t have to mean drastic cuts, so let’s explore some practical ways to do so.
1. Start Embracing Flexibility and Sustainability
This might sound cliché, but letting people work from home (even part-time) or using shared office spaces can seriously cut down on rent and utility bills. You only pay for the space you need. To support remote and hybrid teams effectively, consider business solutions integrating
calling, messaging, and video conferencing all in one. This can help maintain seamless communication regardless of location, supporting the cost savings of a flexible workspace. Additionally, adopting
greener options like energy-efficient
hardware might seem small but can gradually add up to considerable savings by minimising electronic waste.
2. Choose Smart Tech to Reduce Spending
If you let tech do the heavy lifting and automate repetitive tasks with the right software and tools, the chances of saving costs and reducing the need for manual work are high. Choose systems and tools that can grow with your business, so you’re not constantly having to replace everything as you expand. This will also free up your team for more important things and only paying for the systems you need instead of buying licenses for unnecessary features. For example, using the cloud for storage gets rid of the need for expensive in-house servers and their upkeep. Using
cloud-based tools for things like storage management means that you can easily adjust to what your business needs and only pay for what you use, without buying lots of expensive equipment upfront.
‘UK employees spend an average of over two working days a month dealing with service-related issues’
Source: UK customer service statistics 2024
3. Consider Outsourcing Essential Skills
The smart move is to really look at outsourcing tasks where it makes sense i.e. in an area of your business that needs extra attention or support. If your team lacks specific skills that are needed to keep your business running efficiently, it’s often way more cost-effective to bring in
outsourcing services for those jobs rather than going through the expense and time of training someone internally or hiring a whole new employee. Instead of feeling like you need a full-time person for every role, explore getting external help for specific areas like bookkeeping, customer service, and project management. And when you’re working with outsourced teams, having reliable communication is crucial.
4. Invest in Your Customer Service
Customer service isn’t just a nice-to-have component, especially in the UK where customer expectations are demanding. Your business will depend on it heavily to attract new customers, keep your existing ones satisfied, and build a positive company reputation in the long run. Consider this: Businesses are estimated to lose billions annually due to poor customer service in the UK alone. The solution is to use modern technology to help you answer common customer questions,
automate voice responses, and saving time for both your team and your customers. Think about how much time your team spends answering the same customer questions over and over. Smart tech offers a brilliant way to handle this.
Using virtual support like chatbots and online help, you can provide round-the-clock assistance for many common queries, meaning you might not need such a large customer service team.
It’s never too late to make smart decisions in business without breaking the bank. At Alfonica, we understand that efficient communication creates opportunity. Get expert-approved advice and start streamlining your workflows.
Ready to book a free no-obligation consultation to explore your options? Click here
