Maximising EOFY Momentum: Strategic Staffing and Smart Tax Moves for the New Financial Year

As the new financial year begins, businesses across the UK are not just crunching numbers—they’re realigning strategy. The start of the financial year is one of the most critical times for organisations to reset, reassess, and streamline operations. For many, it’s more than just reviewing the books; it’s about preparing for the future with smarter workforce planning, stronger compliance, and cost-effective hiring practices.

With ongoing changes in employment legislation, including continued updates to IR35 and increased scrutiny around worker classifications, staying ahead isn’t just advantageous—it’s essential. Businesses that fail to reassess their staffing structures or leave compliance unchecked risk costly penalties and missed opportunities for financial optimisation.

According to recent business insights, many organisations are turning to short-term contracts and part-time staff to boost flexibility while aligning with strategic priorities. There’s also a noticeable rise in the use of government incentives like employment allowance, apprenticeship funding, and R&D tax credits—all of which can contribute to meaningful savings if utilised correctly.

Tax-wise, now is the perfect time to ensure everything from payroll to contractor classifications are in line. A proactive start to the financial year can lead to improved compliance, better workforce stability, and ultimately, stronger growth over the coming months.

"it’s not just about hiring more people, but hiring smarter.”

In a recent conversation, Liz Jones, UK Managing Director at people2people, sat down with Maddy Laing, Senior Consultant specialising in temporary and contract staffing, to explore how companies are rethinking their employment strategies to stay ahead.

Jones opened the conversation by highlighting the importance of making the most of this annual reset. “With the new financial year officially underway, now is the perfect time for businesses to reassess their hiring strategies and workforce planning,” she said. “It’s not just about growth, it’s about making smart decisions that drive savings, ensure compliance, and set the tone for the months ahead.”

Laing agreed, noting that many UK companies are approaching this period with renewed focus. “The start of the financial year is such a valuable reset point,” she explained. “It’s when a lot of companies really look at their structure and ask, ‘How are we going to stay ahead for the year coming?’ Increasingly, it’s not just about hiring more people, but hiring smarter.”

When asked what “hiring smarter” looks like, Laing pointed to early alignment between roles and business goals. “It’s about reviewing whether you need full-time or part-time staff—or whether some projects are better handled through short-term contracts,” she said. “And with IR35 and employment law still really relevant, it’s a compliance check too.”

Jones echoed the importance of getting classifications right. “Mistakes on that front can be very costly later on,” she said, to which Laing added, “It’s much easier to start the year off on the right foot rather than having to fix things mid-year.”

One of the key themes of the discussion was the financial benefit of early planning. “Staffing plans are a huge part of your financial plan,” Laing said. “If you get ahead of it in April, you’re more likely to control costs, avoid last-minute recruitment scrambles, and take full advantage of government schemes.”

Jones summed it up well: “So the message is: set the tone early, get strategic with your staffing, and you’ll thank yourself later.”

Laing closed with a timely reminder for business leaders: “The new financial year is your slate—use it to build the right team in the right way to set yourself ahead.”

Practical Tax Tips to Avoid an EOFY Hangover

To complement your staffing strategy, it’s equally important to review your tax practices at the start of the financial year. Here are some key tips to ensure a clean, compliant, and cost-efficient start:

Separate Work and Personal Finances
Keeping business and personal transactions distinct helps avoid confusion at tax time and ensures all eligible expenses are properly claimed.

Keep Accurate Records
Good recordkeeping throughout the year minimises stress and errors during tax return preparation. Use cloud-based accounting tools to keep everything in order.

Know What You Can Claim
Be sure to understand what deductions are available, from office supplies and equipment to work-related travel and training. Missing out on legitimate deductions can lead to higher tax bills.

Consider Prepaying Expenses
If cash flow allows, prepaying some business expenses—such as rent or insurance—can help reduce taxable income for the current year.

Review Superannuation Contributions
Ensure any employer obligations are met and take advantage of tax-efficient super contributions where appropriate.

Manage Debtors and Invoices
Chase up unpaid invoices early and ensure your cash flow is healthy. Outstanding debts can affect your year-end financial picture.

Understand Your Structure
Your business structure (sole trader, partnership, company, etc.) affects your tax obligations. Make sure you’re operating under the most tax-efficient model for your size and goals.

Check Compliance with Contractor Rules
Misclassification of contractors as employees—or vice versa—can result in penalties. Ensure you’re clear on the distinctions and obligations under employment law.

Use Professional Support Where Needed
Hiring a tax agent or financial advisor can help identify savings opportunities and ensure full compliance, especially with changing legislation.

Starting the financial year strong means more than just setting goals—it requires aligning your hiring strategy and tax planning to support business growth and compliance. By taking proactive steps now, businesses can avoid costly mistakes, stay compliant, and build a more sustainable path for the year ahead.

Is your organisation ready to make the most of the new financial year?