Keep Your Business Financially Healthy and Help Avoid the Beach Business TrapPosted: Aug 8, 2025

If you are a company director or run your own business, you will probably be familiar with just how hard it is to let things go and take a holiday.

Do you suffer from Beach Business Syndrome? It’s our term for that nagging worry that something might be going wrong while you’re away from your business. It happens like this. You have the right book to read, you settle down in the sunshine with a long, cool drink, the waves are lapping on the beach, and there is nothing to do but relax. So, you lean back, feel the sun on your face, sigh happily and then start worrying that your tax return is due or whether your key account has paid their last invoice. Five minutes later, you are checking your bank and sending emails while the ice slowly melts in your drink, and everyone around you has a great time.

If you recognise yourself in that scenario, you are in good company. We do a lot of networking and speaking at events here at Smart Business Recovery, and it seems that Beach business syndrome is a common affliction for company directors and self-employed professionals.

It’s probably a bit over optimistic to think you will ever totally get away from worrying about your business while you are on holiday, but there are a few things you can do to get it under control and enjoy your break.

For some people, getting away from it all can even trigger the desire to absolutely get away from it all and wind up their business and retire.

Tax is a major cause of Beach Business Syndrome.

In the rush to clear your inbox before a holiday, tax deadlines can easily be overlooked. As we often say, HMRC are the silent creditor, but the consequences of missing a deadline can be costly.

Your tax obligations don’t take a holiday when you do, so make sure you’ve either paid or scheduled them for payment in advance. If you use digital accounting tools that comply with Making Tax Digital (MTD), we can’t stress enough the importance of ensuring everything is reconciled and up to date before you go.

• Key Point: Schedule payments and file returns before your holiday begins — tax doesn’t take a summer break.

Did the team get paid?

If you employ staff, it’s essential to keep the payroll running on time. That means preparing Full Payment Submissions (FPS) for HMRC, arranging PAYE and National Insurance (NI) contributions, and ensuring salaries are paid as usual. While that sounds easy, you would be surprised how often a small sign-off for a bonus gets forgotten, or the need for an approval for expenses, commissions, or similar variables gets missed.

Many accounting platforms allow you to schedule payroll in advance, so for standard things like a regular salary payment, there shouldn’t be an issue if they are up to date. The best solution is probably to just delegate tasks to a bookkeeper or a trusted member of your team, and also give them the trust to make things happen for you. However, a little ‘what will happen if…’ session before you go is a really good idea.

Mistakes with salaries can be a big cause of discontent for your team, so a few minutes set aside to make sure they don’t happen could be invaluable.

As a side thought on this, don’t forget to run your own director’s salary!

• Key Thought: Delegation of decision making and tasks will keep your team (and HMRC) happy while you unwind.

Did everyone else get paid?

Don’t forget your supply chain while you are away. Your suppliers and contractors will also need to be paid. It is very easy to forget them when you are concentrating on your team and your other obligations. When it comes down to it, your supply chain and associated areas keep your business running.

What’s the worst that can happen, though? You are only away for a couple of weeks, right? Well, OK, let’s do the maths if a bill that is due doesn’t get paid.

If you are away for a fortnight, then, in the very worst case, you will only be 14 days late. However, that isn’t the reality, is it? Let’s assume you have 30-day terms as a starting point and the bill is due, but doesn’t get paid on the Friday of the weekend before you leave. By Monday, the bill is at least three days overdue, and you just started your break. So, by the time your holiday ends, you are 17 days over. Assuming you return to work a couple of days after you return from holiday, your outstanding payment is 19 or 20 days overdue. By which time you will probably have had two reminders and been possibly flagged as a potential bad payer.

Ask yourself how you would feel about a customer who paid 21 days late.

• Key Thought: Suppliers are important, so make sure they will still be paid if you are away.

Will you get paid?

Unpaid invoices are a major source of stress at any time, but more so when you’re not around to chase them. I suggest that to avoid that as much as possible by taking a detailed look at your accounts receivable before you go.

While it’s true that cloud-based systems offer automated reminders, the human touch can’t be underestimated. It is that judgement call that only you can provide that will give you the peace of mind on the beach. So, go back through your accounts receivable to not only get them up to date, but also look for the red flags. Has a customer recently started to let payment terms slip? Are there any contracts that need renewing? Are your Ts&Cs still appropriate? And so on.

It is all about knowing that potential problems have been dealt with. Where you can, maybe also get a trusted colleague to monitor the tasks around keeping an eye on bank accounts and spotting any red flags while you’re gone.

• Key Thought: Healthy cashflow is your business’s lifeblood, so make sure it’s steady before you fly.

Is it time for a new chapter in your life?

There’s something about time away that gives us space to think. No emails. No meetings. No daily pressures. Just you, a good book, some breathing space…and perhaps a cocktail.

Many business owners find that a holiday is when the big thoughts start to surface:

“Do I still enjoy this?”
“Is it time to retire?”
“Could I do something new?”

If your holiday leads to deeper questions about your future, it might be time to start thinking about how to step away on your own terms.

If you’ve decided your business has run its course, and you think you’re in a strong financial position, a Members’ Voluntary Liquidation (MVL) could be a smart, tax-efficient way to close.

An MVL is a formal process to shut down a solvent limited company, meaning one that can pay all its debts. It’s commonly used by business owners who want to:

Retire
Extract profits tax-efficiently
Close a dormant or no-longer-needed company

The main advantage of an MVL is that it allows remaining company funds to be distributed as capital, rather than income. This often results in significantly lower Capital Gains Tax (CGT).

An MVL must be handled by a licensed insolvency practitioner, who will manage:

Settling any debts
Liaising with HMRC
Distributing remaining funds to shareholders
Formally dissolving the company with Companies House

At Smart Business Recovery, we specialise in helping directors navigate MVLs with clarity and confidence. Our process is transparent, our pricing is fixed, and we’re happy to answer any questions along the way.

We’ve also put together a free downloadable guide that walks you through everything involved, from initial decisions to final closure. You can access it here.

• Key Thought: If you’re ready to make the move from boardroom to beach, an MVL could be the tax-smart way to exit.

It’s a proven fact that taking a real break from your business doesn’t just benefit your mental wellbeing and get you a good rest, it can also improve your clarity, your planning, and even your long-term strategy.

By preparing your finances, supporting your team, and reflecting on what you really want, you can return from your holiday refreshed and refocused.

Back