Don’t be forced into action
Don’t be forced into action
In finances, as in life, taking action only when you’re forced will always lead to the worst outcome.
June 5, 2025

Whether we’re in a business setting or handling essential “life admin”, each of us is occasionally guilty of the same thing: putting off a task until we’re forced to act. Tight deadlines, rushed ticket bookings, panic-buying for the school cake stall (when you’re already running late)… We wait to take action, and the result is predictable: we get the worst outcomes.

I’m horribly guilty of delaying gift shopping until the last minute – with the result being intense stress and decidedly limited options. Sure, my loved one always ends up with a gift; objectively, the box has been ticked. But the whole debacle is unpleasant, and I’ll always feel the guilt of knowing it could have been better. And here’s the real sting in the tail: that person will never know what they could have had.

HMRC’s Making Tax Digital (MTD) is forcing our finances into the digital age, with the requirement to submit additional declarations. This is a step that will be greatly eased by digitising your records to iron out any kinks, eventually allowing HMRC to see all reporting of income and expenses happening online, in all-but real time. It doesn’t yet apply if you’re trading as a partnership or company, but this is looming on the horizon, with the change coming from April 2026. And despite MTD’s stated aims of improved accuracy and efficiency, it’s likely to lead the move towards more regular tax payments and potentially increased investigations.

This means that the changes heralded by MTD will force companies to hone their financial discipline and take accountability for their decisions. As your trusted adviser, we can guide you on what needs to be done, and when, but you’ll need to input to a greater extent, too. This involves a change of mindset, as in this context abdication isn’t an option.

Think this sounds like a hassle? You’re not alone. Lots of people – even accountants – feel the same about never-ending increases in regulation, and it’s an understandable attitude when you’re used to operating one way. Think it doesn’t apply to you? That’s technically true, for now. The deadline for companies isn’t here, and you might not need to migrate your financial world online, just as I don’t need to buy birthday gifts until the cake candles have been lit. But… If you don’t, you’ll never know what you might have had.

Because digitising your finances doesn’t just please HMRC – it’s actually a positive and empowering step for any practice owner or associate. If we forget all about official box ticking and deadlines, this level of discipline is what gets us all better outcomes. It allows us to see what’s happening beneath the hood of your practice. That’s why, as a company, Hive is already working digital-first, and has been for some time.

Having accurate and up-to-date numbers results in lower taxes and gives a level of insight that can make a huge difference to the opportunities you encounter. For example, if you’re exit planning, you can ultimately take more from your business when you sell. If you have cash in the bank, you could also channel this into a more effective and lucrative investment strategy. And alongside all this, there’s the invaluable peace of mind that comes from knowing you’ve already covered the essentials and done the best that you could do.

So, why wait for MTD to come to you? Instead of rushing when your hand is forced, consider taking action now. You’ll feel better, you’ll be ready, and – all-importantly ­– you’ll be able to start benefitting from those better outcomes.

The information contained in this article is based on the opinion of Hive Business and does not constitute formal tax advice. Any tax outcomes will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future. You should seek specific advice before embarking on any course of action. Hive Business does not provide regulated Financial Advice, including advice on investment, insurance or lending products or their suitability for you. This article is provided for information only and does not constitute, and should not be interpreted as, investment advice or a recommendation to buy, sell or otherwise transact, or not transact, in any investment including Bitcoin and other crypto. Any use you wish to make of any information contained within this article is, therefore, entirely at your own risk.

By Hayley Robins ACA Accountancy Director
If you have any questions or comments about this article, please get in touch.
Call Now Button