Preparing a Business Plan: Planning Not to Fail
If you are looking for clarity, structure and confidence in launching or growing your venture, then working with a specialist such as Grays Accountants is a wise first step
A well-constructed business plan sets you up to avoid common pitfalls, whilst aligning strategy, finance and execution.
At this stage your plan becomes not just a document, but a roadmap and control tool.
In this article we’ll explore how to prepare a business plan for 2025/26, updated rules you need to know, and how Grays Accountants (or trusted advisers) can support you throughout.
Why a Business Plan Matters for Entrepreneurs
When you partner with Grays Accountants you’re not just ticking a box – you’re equipping yourself with:
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A clear description of what your business will do (and how)
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Forecasts and financial modelling that underpin credible decision-making
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A risk assessment, with mitigation strategies and contingency planning
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A tool to communicate with investors, lenders, suppliers and stakeholder
By doing this you reduce the chance of failure, or of drifting aimlessly.
Defining Your Business Opportunity (with Grays Accountants Support)
Your business plan must start with what you are going to do, who you will serve and how you will deliver it. Key questions:
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What problem are you solving?
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Who is your target market and what size is it?
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What is your offering: product, service or hybrid?
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How will you differentiate yourself (pricing, quality, service, technology)?
Getting support from Grays Accountants at this stage means you can ground your assumptions in realistic market data, pricing benchmarks and cost structures.
Market Analysis and Competitive Positioning
Your plan should include a market‐analysis section that shows you understand the landscape. Include:
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Market size and growth trends
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Key competitors (direct and indirect)
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Your unique value proposition
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Barriers to entry and how you overcome them
With Grays Accountants, you can ensure your market and competitor data are credible and your assumptions robust.
Financial Projections and Key Rates for 2025/26
One of the most important parts of your business plan is the financial section.
Here are some up-to-date rates and allowances for the UK for 2025/26 that you should build into your modelling.
Corporation Tax / Income Tax / Dividend & National Insurance
| Tax type | Rate / Allowance for 2025/26 | Notes |
|---|---|---|
| Corporation Tax (companies) | 25% headline rate | For profits above the small profits rate; note marginal relief structure remains. |
| Small profits rate (if applicable) | 19% | For companies with profits at or below the lower limit (if still in force). Check latest thresholds. |
| Personal Income Tax – basic rate | 20% | On taxable income up to the basic-rate limit. |
| Personal Income Tax – higher rate | 40% | On taxable income above the higher-rate threshold. |
| Dividend allowance | £1,000 | First £1,000 of dividends taxed at 0% for 2025/26? (Confirm via latest HMRC update). |
| Dividend tax rates | 8.75% (basic), 33.75% (higher) | On dividends above allowance. |
| National Insurance contributions (Class 1 employees) | 13.25% main rate (employer), 8% (employee) up to Upper Earnings Limit; 3.25% above | Rates subject to change; verify for your date of business plan. |
Capital Allowances & Investment Incentives
| Type | Rate / Condition for 2025/26 | Notes |
|---|---|---|
| Annual Investment Allowance (AIA) | £1 million (temporary, subject to legislation) | Check start-date and whether transitional rules apply. |
| Main pool writing down allowance | 18% reducing-balance | For qualifying plant & machinery not claimed under AIA. |
| Special rate pool | 6% reducing-balance | For thermal insulation, long life assets, cars with high emissions. |
| Research & Development (R&D) relief | Enhanced deduction up to 86% (companies) | Or R&D credit up to 10%. Confirm latest budget changes. |
VAT Registration & Deregistration Thresholds
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VAT registration threshold remains at £90,000 taxable turnover (in most cases) for 2025/26.
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Deregistration threshold £88,000.
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Making Tax Digital (MTD) for VAT remains mandatory for most VAT-registered businesses.
(Verify any late updates from HMRC.)
Employment Allowance & Employer NICs
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Employment Allowance remains available up to £5,000 per year for eligible employers (check eligibility for 2025/26).
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Apprenticeship Levy threshold stays at £3 million employer payroll (check for late changes).
Risk Assessment and Mitigation Strategies (with Grays Accountants Input)
A mature business plan doesn’t ignore risks; it identifies them and shows how you will handle them. Typical risks include:
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Market demand not materialising
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Cost overruns or cash flow shortfall
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Regulatory or tax-rule changes (for 2025/26 and beyond)
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Dependence on key personnel or customers
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Supply-chain disruption
By working with Grays Accountants, you can stress-test your financials (e.g., worst-case scenario modelling), and factor in tax and regulatory adjustments for 2025/26.
Implementation Timeline and Milestones
Your business plan should outline specific milestones, e.g.:
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Month 0–3: Set up legal structure, open bank account, hire key staff
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Month 3–6: Launch marketing campaign, secure first 10 customers
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Month 6–12: Reach break-even, monitor cash flow weekly, review forecasts
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Month 12–24: Expand regional presence, review cost base, update plan for 2026/27
When Grays Accountants reviews your plan they will help link these milestones to measurable KPIs, and incorporate tax-/compliance-related triggers (for 2025/26 and beyond).
Monitoring & Reviewing the Business Plan (with Grays Accountants Guidance)
Your business plan is not a “set‐and‐forget” document. Best practice involves:
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Monthly performance tracking: compare actual vs forecast
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Quarterly re-forecast: adjust for market/regulation/tax changes
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Annual review: particularly important as new rules for 2025/26 become effective
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Tax compliance check: ensure you remain aligned with the latest rules (for example allowance changes, MTD updates, tax-credit changes)
Engaging Grays Accountants at this stage means you benefit from an external “challenge” function, early warning of tax compliance risk and proactive scenario planning.
How Grays Accountants Can Help You
At Trueman Brown we appreciate the power of a detailed business plan and provide specialist support at every stage. Whether you’re starting up or scaling your operations, we can work alongside you to ensure your plan is robust, tax-aware and future-proof for 2025/26 and beyond.
We will:
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Review your draft business plan and financial forecasts
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Provide tax-compliance advice linked to the rules for 2025/26 and forward
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Help stress-test your plan for risk and regulatory change
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Assist with bookkeeping, cash-flow modelling and management reporting
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Act as your ongoing adviser: monitoring compliance, updating forecasts and reviewing strategy
To find out how we can help you, contact us at mark@truemanbrown.co.uk or call 01708 397262. We look forward to working with you.
Grays Accountants FAQ
Q1: Do I need a business plan if I’m a sole trader or small business?
Yes. Regardless of size, a business plan helps clarify your ideas, set measurable goals, identify risks and plan finances — especially useful if you seek funding or want to stay on track.
Q2: How often should I update my business plan?
At minimum annually. But with rules changing for tax, allowances and digital reporting (e.g., for 2025/26 and beyond), you should review at least quarterly and revise when significant changes occur.
Q3: What key changes for 2025/26 do I need to incorporate?
Important updates include: corporation tax changes, capital allowances (AIA, writing down allowances), dividend tax allowances, VAT registration thresholds and digital-tax regimes (such as MTD). Use the tables above as a starting point.
Q4: How can an accountant (or Grays Accountants) help?
An accountant brings real-world experience: validating your assumptions, ensuring compliance with evolving tax/regulation, modelling multiple scenarios, and providing ongoing monitoring. They effectively turn your business plan into a live tool.
Q5: What if my business plan doesn’t go to plan?
The purpose of monitoring is to identify variances early. If actual results differ significantly from forecasts, you can revisit your strategy, adjust budgets and timelines, or refine your market approach. Working with your accountant ensures you respond swiftly and effectively.
Q6: Is digital reporting relevant for my business plan?
Yes. With regimes such as Making Tax Digital (MTD) becoming the norm for VAT, income tax and (in future) landlords, your plan should include digital-capability costs, training needs and integration timelines.