By Matt Storey, Partner
December is a time when there seems to be no shortage of festivities as Christmas, Kwanza and Hanukkah all vie for the time and attention of clients, customers and businesses.
During the festive period, it is rare for things to be business as usual with companies either seeing sharp upturns or downturns in engagement and revenue.
Whichever one awaits you, the time has come to prepare so that you can still have a stable business waiting for you in the New Year.
How can businesses prepare for a festive rush?
If your business is set to experience more traffic over the festive period, then you should know how best to capitalise on it.
You would not want an opportunity to pass you by because you forgot a crucial aspect of planning, as this can damage your prospects for growth in 2026.
Instead, take the time now to consider what steps you need to implement to make the most of the season.
This most commonly takes the form of hiring seasonal workers.
Seasonal workers are subject to the same rights as regular employees and need to be treated as such.
By preparing your onboarding processes now, you can be certain your temporary team are ready to hit the ground running when the festive period arrives.
Your finances need to be ready to handle the additional employee expenses that they will bring, as it is unlawful to pay anything less than either the National Living Wage (NLW) or the National Minimum Wage (NMW), depending on their age.
The current rates are:
- £12.21 for people aged 21 and over
- £10 for people aged 18 to 20
- £7.55 for people aged under 18
- £7.55 is the apprentice rate
It may also be necessary for you to manage tips and gratuities and this must be done in accordance with the Employment (Allocation of Tips) Act 2023.
Unlike in other places around the world, tips cannot be used as a substitute for wages and should be treated as an additional benefit on top of the NMW or NLW.
To avoid breaching compliance, you need to have a clearly defined agreement with your employees so that they understand how tips and gratuities will be divided.
When tips and gratuities are pooled, this will need to be done with a tronc that will be overseen by a troncmaster.
What happens if my business is set to be quiet over the festive period?
Early planning is imperative if your business is set to face a reduction in trade.
This ensures that you are well-positioned to endure the loss of revenue and can get back up to speed when business picks up in the new year.
It might be worth taking the quieter time to reflect on how your business has been performing in the past year.
If there has been anything that seems to be holding you back, some quiet time is a good opportunity to come up with a new plan or angle.
This will let you get the fresh start in 2026 that you deserve.
Whatever awaits your business in the festive season, planning as early as possible will let you make the most of it.
We can offer you expert advice to give you the best chance of success in 2026.
Speak to our team today for festive financial planning.