For many business owners, the focus is firmly on growth, profitability and day to day operations. Exit planning is often treated as something to think about later, perhaps a few years before retirement or when a buyer appears. In reality, leaving exit planning until the end can significantly reduce the value of a business and limit the choices available to the owner.

Business exit planning is not just about selling. It is about ensuring that the business can continue without relying entirely on the owner, whether the eventual exit is a sale, a management buyout, a family succession, or an orderly wind down. A business that depends heavily on one individual is harder to transfer, riskier to run, and usually worth less in the eyes of buyers, lenders and investors.

Early exit planning helps owners build value deliberately. This includes strengthening management teams, improving systems and processes, diversifying customer bases, and ensuring financial information is clear and reliable. These steps do not just support an eventual exit; they often lead to better performance and lower stress while the owner is still actively involved.

Tax planning is another critical element. Decisions made years in advance can have a major impact on the net proceeds of an exit. Reliefs, ownership structures, remuneration strategies and timing all need careful thought. Leaving this too late can mean avoidable tax costs and missed opportunities.

There is also a personal dimension. An exit is one of the most significant financial and emotional events in an owner’s life. Planning early allows time to define personal goals, whether that is retirement income, a new venture, or a gradual step back rather than a sudden stop.

In short, exit planning is not about leaving tomorrow. It is about running today’s business in a way that protects value, preserves choice, and gives the owner control over how and when they eventually move on.

The latest figures from the Office for National Statistics show that in 2025 the number of UK business births exceeded business deaths for a second successive year, pointing to a net increase in the total number of active enterprises. According to data from the Inter-Departmental Business Register, there were 313,715 new businesses created in 2025 and 285,245 that ceased trading, resulting in a net growth of 28,470 businesses on the register. This pattern suggests that entrepreneurial activity remains resilient despite broader economic headwinds and contributes to modest expansion in the overall business population.

Quarterly official statistics for late 2025 also reinforce this trend. Figures for the fourth quarter (October to December) show that new business formations increased by 10% compared with the same period in 2024, while business closures were 3.6% lower than in the prior year period. Growth in start-ups was recorded across most industrial groups, with particularly strong increases in transport, storage, information and communication sectors.

These statistics underline a shift from earlier quarters, where the balance of births and deaths fluctuated more and in some sectors raised concerns about churn and employment impact. However, the annual outcome for 2025 reinforces a net positive dynamic in UK enterprise counts. While the headline birth-death balance is encouraging, analysts note it remains important to monitor the quality of job creation and the survival prospects of new businesses as they scale. The figures are part of official statistics in development and will be refined as further data become available.

HMRC has confirmed that more than 11.48 million people submitted their 2024-25 self-assessment tax returns by the 31 January deadline. This included 475,722 taxpayers who left their filing until the final day and almost 27,456 that filed in the last hour (between 23:00 and 23:59) before the deadline!

There are an estimated 1 million taxpayers that missed the deadline. Are you among those that missed the 31 January 2026 filing deadline for your 2024-25 self-assessment returns?

If you have missed the filing deadline then you will usually be charged a £100 fixed penalty if your return is up to 3 months late, regardless of whether you owed tax or not. If you do not file and pay before 1 May 2026 then you will face further penalties unless you have made an arrangement to pay with HMRC.

If you are unable to pay your tax bill, there is an option to set up an online time to pay payment plan to spread the cost of tax due on 31 January 2026 for up to 12 months. This option is available for debts up to £30,000 and the payment plan needs to be set up no later than 60 days after the due date of a debt.

If you owe self-assessment tax payments of over £30,000 or need longer than 12 months to pay in full, you can still apply to set up a time to pay arrangement with HMRC, but this cannot be done using the online service.

HMRC online services allow individuals, businesses and agents to manage tax matters securely over the internet. Using an HMRC online account, you can send information such as self-assessment tax returns or VAT registration applications, view important records like your business or personal tax account and make payments online.

To access these services, you will need to ensure you have set up an account with HMRC. If you do not already have sign-in details, you can easily create them. HMRC provides three types of online services accounts: individual accounts, organisation accounts and accounts for agents.

An individual account lets you set up a Personal Tax Account where you can complete tasks such as checking your Income Tax estimate and tax code, updating personal details and claiming tax refunds. You can also register for self-assessment if you need to report income from sources such as property or investments. The same sign-in details can be used for both services.

Organisation accounts are for businesses and trusts. A business tax account allows sole traders, partnerships and limited companies to register for self-assessment (if self-employed), VAT, PAYE and Corporation Tax, depending on what is required.

A number of HMRC services use a separate sign-in process, including excise, import and export services, childcare accounts and for reporting Capital Gains Tax on UK property.

The Additional State Pension is only available to those who reached the state pension age before 6 April 2016 and are receiving the Old State Pension. The Additional State Pension is an extra amount of money paid on top of the basic Old State Pension.

The Old State Pension is designed to provide individuals of state pension age with a basic regular income and is based on National Insurance Contributions (NICs). To get the full basic State Pension, most people need to have had 35 qualifying years of NICs.

Claimants will automatically have received the Additional State Pension if they were eligible for it. Those who had contracted out were not eligible for the Additional State Pension.

If your spouse or civil partner dies, you may be able to inherit some of their Additional State Pension if you reached State Pension age before 6 April 2016. If you do not receive the full basic State Pension, you may be able to increase it by using your spouse or civil partner’s qualifying National Insurance years.

You may also be able to inherit part of their Additional State Pension or Graduated Retirement Benefit. Different rules apply if you reached State Pension age on or after 6 April 2016. If relevant, you should contact the Pension Service to check what you can claim.