The start of a new financial year is an ideal time for businesses to ensure their legal affairs are in order. A crucial part of this process involves reviewing and updating the various legal documents your business should maintain. Whether you are an experienced business owner or just beginning your entrepreneurial journey, this guide will help you start the new financial year on the right foot. Sam Glascow, a corporate-commercial solicitor, delves into what you should be reviewing for the new FY.
Contracts and Agreements – Establishing a Strong Business Foundation
Contracts and Agreements form the foundation of any business, especially at the start of a new fiscal year. Start your legal document review by scrutinising current contracts and agreements, including those with clients, vendors, employees, and other legally binding documents, before the upcoming tax deadlines. Terms and conditions should be reviewed to ensure that they remain pertinent and revise them to accommodate any changes in your business operations or legal requirements.
Corporate Governance Essentials – Ensuring Compliance
If your business is structured as a company, the documents relating to the corporate governance (the system by which companies are directed and controlled) of the company such as, articles of association and bylaws, are fundamental. It is important to review these documents to ensure they are fit for purpose by reflecting your company's structure, including registration with companies house, the company tax return, operating procedures, and objectives. Any changes in ownership or management should be reflected accordingly in the relevant documents.
Regulatory Compliance – Adhering to the relevant Regulations
Business sectors/industries evolve over time and as such, so do the relevant regulations. Regularly review your legal documents to ensure compliance with industry-specific regulations and the requirements for financial reporting and a tax return is important. This may include licenses, certifications, or permits, as well as other financial transactions relevant to your business. Stay informed about any changes in your industry's regulatory landscape and update your documents accordingly to avoid legal complications.
Privacy Policies and Data Protection – Meeting and Upholding Legal Requirements
Given the growing focus on data protection and privacy, it is essential to review and update your privacy policies to ensure your business aligns with the latest data protection regulations such as the General Data Protection Regulation (GDPR). Your data protection policy should clearly outline how you collect, use, and store customer data, and be updated accordingly, especially in relation to corporation tax.
Employment Policies – Staying Current with Regulations
Employment laws and regulations, including those affecting self-assessment, are often reviewed and can undergo changes. It is therefore important to update to your employment policies and handbooks. Review your existing documents to ensure they align with the current legal landscape, reflecting any updates from the previous tax year especially considering the upcoming changes in the Employment Rights Bill. Our experienced Employment Law team understands the nuances of the ever-changing employment law landscape.
Intellectual Property – Protecting your Innovations
Your Intellectual Property (IP) is a very crucial asset and should not be overlooked. You should review your IP portfolio, including trademarks, patents, and copyrights, especially as the financial year begins. Ensure all registrations are current and that you have sufficient protection for any new products or services your business has launched. Adjust your IP strategy as necessary to align with your current business objectives.
Insurance Policies – Managing Potential Risks
Insurance plays a vital role in risk management, particularly in relation to capital gains. Your current insurance policies should be evaluated to confirm they offer sufficient cover for potential risks your business might encounter, particularly in relation to capital gains tax. It may be beneficial to consult with an insurance expert to determine if your existing coverage meets your business needs and reflects any operational changes as every industry/sector has different requirements.
Next Steps – Contact Us: Corporate & Commercial Solicitors
Starting the new financial year and keeping track of key dates on the right foot involves more than just setting goals; it's about fortifying the legal foundation of your business. Regularly reviewing and updating your legal documents, especially in line with critical tax dates, ensures compliance with the law, mitigates risks, and positions your business for success in the year ahead. At RFB, we have extensive experience in guiding businesses of all sizes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
