Succession planning is about building a future-ready business by preparing your people for what’s next.

For HR managers and business owners alike, it’s one of the most important ways to build stability, retain talent, and prepare for inevitable change.

Whether someone retires, gets promoted, or unexpectedly departs, having a clear plan makes sure your business keeps moving forward.

Succession planning means fewer disruptions, smoother transitions, and a more confident approach to developing leadership from within.

This article will walk you through what succession planning means, why it matters, what a good framework looks like, and how HR professionals like you can lead the charge.

You’ll also find practical examples and tips for overcoming common roadblocks to build a resilient and realistic plan.

Here’s what we’ll cover:

What is succession planning?

Succession planning is the process of identifying and developing internal talent to fill key roles when they become vacant, whether due to a planned transition like retirement or an unexpected departure.

Put simply, it’s about keeping your business running smoothly, no matter who leaves.

And it’s not just about senior executives; it applies to any mission-critical role that drives day-to-day operations.

From an HR and strategic standpoint, succession planning is a proactive approach.

It means recognising potential gaps early, nurturing future leaders, and making leadership development a core part of your company’s growth.

Why is succession planning important?

Succession planning is essential to reducing risk, retaining top talent, and supporting long-term growth.

It’s about creating a stronger, more resilient organisation.

Here’s why it matters to your business:

• Minimises disruption: you can’t always predict when a key employee will leave, but a clear plan helps you stay prepared and maintain continuity.
• Boosts retention: employees who see a future with your business are more likely to stay motivated and committed.
• Drives business growth: succession planning ensures the right people are in place as your organisation expands, shifts, or evolves.
• Supports development: high-potential team members benefit from structured learning and defined pathways to leadership.
• Strengthens company culture: promoting from within helps preserve your values and creates a sense of stability across the team.

When succession planning is done right, you build a future-ready business with engaged, confident leaders at every level.

What is the role of HR in succession planning

As an HR leader, you are the architect, facilitator, and steward of the entire succession planning process.

Your job is to turn strategy into action, ensuring leadership continuity and preparing your team for what’s next.

Here’s how you bring succession planning to life:

• Identify critical roles that are essential to both day-to-day operations and long-term strategy.
• Assess talent gaps by evaluating current capabilities against future leadership needs.
• Define leadership competencies that align with your organisation’s goals and values.
• Evaluate employee readiness through performance reviews, 360-degree feedback, and leadership assessments.
• Design employee development plans to help high-potential individuals build the skills needed for future roles.
• Integrate succession planning with broader talent initiatives like L&D, performance management, and DEI.
• Facilitate communication by managing expectations, ensuring confidentiality, and maintaining clear documentation.
• Maintain continuity with consistent, scalable frameworks that can grow with your organisation.

Implementing these strategies manually can be time-consuming and prone to inconsistencies.

Talent management software enables you to identify critical roles, monitor employee growth, and access real-time insights to support strategic decision-making.

Key steps to build a sustainable succession planning process

A strong succession planning framework should be repeatable, adaptable, and scalable as your organisation evolves.

Here’s a straightforward four-step approach to help you get started:

• Identify key positions: pinpoint the essential roles for business continuity and long-term success. Look beyond senior leadership and include any role where an unplanned vacancy would disrupt operations.
• Evaluate internal talent: use performance reviews, leadership assessments, and feedback to identify employees who can step into critical roles within your succession planning framework.
• Create tailored development plans: align training, mentoring, and stretch assignments with individual goals to equip your employees with the skills needed for future responsibilities.
• Review and refine regularly: your business and your succession planning framework will evolve. Regular reviews ensure the plan remains aligned with shifting priorities and stays relevant.

By following these steps, you’ll establish a succession planning process that fosters stability, supports growth, and ensures long-term success.

Succession planning examples

To bring the concept to life, here are two practical scenarios, one for a larger organisation and one for a smaller business:

Large business example

Imagine you’re working in a multinational company, and you know your CFO is set to retire in 18 months.

As the HR manager, you partner with the finance director to identify two strong internal candidates.

One enrols in an executive leadership programme, while both take on stretch assignments to gain experience in board-level reporting.

With regular evaluations along the way, one candidate is eventually selected and transitions smoothly into the role when the CFO steps down.

Small business example

Now picture yourself in a regional retail company, where the area manager is preparing to move on to a new opportunity.

You’ve identified a high-performing team leader who’s consistently demonstrated strong leadership potential.

She’s paired with a mentor, joins a management training course, and starts shadowing the area manager.

Within six months, she’s ready—and successfully steps into the role, eliminating the need for external recruitment.

Common barriers to effective succession planning

Even with the best intentions, many organisations struggle to implement succession planning.

Here are some of the most common challenges you might face—and how to tackle them:

• Lack of transparency: succession planning doesn’t mean keeping everything under wraps. Clear, thoughtful communication is key. If your team feels left in the dark, it can lead to confusion or mistrust.
• Talent shortages: you may not always have a clear pipeline of ready successors. That’s where proactive development, mentoring, and even external benchmarking come into play.
• Inconsistent processes: without a structured approach or proper documentation, succession planning can quickly become reactive instead of strategic.
• Bias and subjectivity: relying on gut instinct alone can unintentionally limit opportunities and undermine your diversity and inclusion efforts.

Building resilience through leadership planning

Succession planning is about creating a culture of continuous leadership development.

When you make it part of your HR strategy, you prepare for the future and strengthen your organisation today. 

As an HR leader, your planning capabilities strengthen your ability to navigate change, retain talent, and drive growth.

It’s about being proactive, people-focused, and committed to building a resilient workforce.

Ready to take the next step?

Explore how succession planning software can help you streamline the process, support your strategy, and confidently build the leaders of tomorrow.

FAQs about succession planning

1. What should a succession plan include?

A strong succession plan should include a list of critical roles, potential successors, development plans, timelines, performance metrics, and a review schedule.

It should also cover how progress will be evaluated and transitions communicated.

2. Can small businesses use succession planning?

Absolutely. Succession planning is just as crucial for small businesses.

It helps minimise disruption, avoids costly hiring delays, and gives employees clear growth paths.

You can prepare your future leaders in advance, even with a lean team.

Making Tax Digital (MTD) for Income Tax is being called one of the biggest shake-ups in personal tax for a generation.

It presents opportunities for businesses to become more efficient at their core accounting tasks, as well as doing their tax better. This frees up more time to put into the business.

It does this by legally requiring the digitalisation of income tax accounting.

In other words, you must use software for your accounting records relating to income tax, and you have to make regular submissions via software to HMRC to let them (and you) know how much tax you owe.

In this article, we take a look at some key points that should help you understand more about MTD for Income Tax.

Here’s what we cover:

1. Making Tax Digital for Income Tax will affect eligible sole traders and landlords

Here’s a short summary of what Making Tax Digital for Income Tax means:

• It will affect sole traders and landlords that currently use the Self Assessment income tax system. In the first phase, it will apply to those earning over £50,000 (as of April 2026), in the second phase to those earning over £30,000 (as of April 2027), and in the third phase to those earning over £20,000 (as of April 2028).
• MTD-compatible software must be used to record income and expenditure relating to your sole trade and/or landlord income.
• For each sole trader business, and for the total rental income, it requires at least four updates across the year (typically quarterly) to be submitted to HMRC via MTD-compatible software.
• A digital tax return must be submitted by 31 January following the end of the tax year (that is, 5 April the previous year), again using MTD-compatible software.

2. MTD for Income Tax will make life easier

You might look at the requirements for MTD for Income Tax and become concerned that more admin work is involved.

But in fact, accounting software will be able to automate much of this, such as the compilation of quarterly updates.

Bearing in mind it can’t be avoided, MTD for Income Tax is best looked upon as an opportunity to do things better and to reduce business admin overall.

If your business isn’t already using accounting software then its introduction is likely to be revolutionary.

Suddenly you can do things like issue invoices with a single mouse click (or tap of a screen). You can get reminded of overdue invoices, and chase them up in the same easy way.

For businesses already using accounting software, MTD for Income Tax is likely to make you much more aware of your ongoing cash flow and tax situations.

If you provide accurate information when submitting quarterly updates, you’ll always know how much tax and National Insurance you owe.

This can lead to better budgeting and forecasting.

You’ll have no need to set aside a large amount in the intention of over providing for your tax payment. And that means more cash freed up for you and your business.

Above all, MTD for Income Tax presents a golden opportunity to overhaul your business and tax admin.

Using the latest technology, you can reduce your overall admin work, reduce the stress of it all, and free up more time to do the things you love.

3. You will not have to submit Self Assessment tax returns any more

When Making Tax Digital was first announced in 2015, the chancellor said it was “the death of the annual tax return”.

When it comes to MTD for Income Tax, most people will no longer need to submit a Self Assessment tax return.

Instead, you’ll complete quarterly updates, and a digital tax return by 31 January each year. It’s possible you may have to submit an SA100 form by 31 January if you have accounting data that cannot be submitted digitally – but this is only going to be true for a small number of people.

However, those whose turnover is below the thresholds will need to continue submitting a Self Assessment return for their sole trader and/or landlord income.

Also, do remember that those earning over £50,000 who start using MTD for Income Tax will probably find themselves submitting a final Self Assessment tax return by 31 January 2027—after the 6 April 2026 start date of the scheme.

This will be for the 2025/26 tax year, which is the final tax year before MTD for Income Tax begins.

4. It starts in April 2026 but you might not have to follow MTD for Income Tax until 2027 or 2028

If you fall within the scope of MTD for Income Tax, you’ll need to work out your start date.

This is when you need to begin following the MTD for Income Tax rules, following the launch of the scheme in April 2026.

Assuming you earn over £50,000, you’ll have to start from April 2026.

If you earn below this but above £30,000, you’ll have to follow the new rules a year later, in April 2027.

And in April 2028, if you earn over £20,000, you’ll have to comply.

When we talk about what you earn, we mean your gross income, not the net income. The latter is what matters for finding out if you qualify for MTD for Income Tax.

5. You need to check whether MTD for Income Tax applies to you

If you fall within one of the three scopes of over £50,000/£30,000/£20,000 turnover, MTD for Income Tax is about ensuring you get your income tax correct.

This income tax is based on sole trader businesses you might run, and any rental income.

But ultimately, the goal is to work out and then pay your personal tax bill, plus any National Insurance contributions.

MTD for Income Tax means you also need to provide individual quarterly updates for each of the businesses you run, and for rental income.

For example, somebody who runs two sole trader businesses and receives rental income will have the following requirements:

• 12 quarterly updates.
• One digital tax return by 31 January, at the latest.

6. Here’s who doesn’t need to use MTD for Income Tax

This is a non-comprehensive list of those who aren’t covered by MTD for Income Tax (at least not in the first wave of inclusion following the launch in April 2026—they may be included later):

• Those currently using Self Assessment whose turnover from sole trader and/or property rental income is below £50,000 (from April 2027, below £30,000; from April 2028, below £20,000)
• Those whose income doesn’t come from sole trader or property rental income
• Limited Liability Partnerships (LLPs)
• Partnerships that include an incorporated company as a member
• Trusts and estates
• Trustees of non-registered pension schemes
• Non-resident companies
• Those who HMRC agrees are digitally excluded, typically for reasons of location or belief. For example, it may not be possible to get an internet connection where you live because of your remote location, or your religious beliefs may prohibit you from using technology in the way that MTD for Income Tax requires. But be aware that HMRC will be quite strict about allowing exclusions. If you lack an internet connection but your accountant has one, or you can perhaps visit a library with online computers, then you might be expected to make use of those facilities.

Final thoughts on MTD for Income Tax

Getting your head around MTD for Income Tax is something that should begin sooner, rather than later.

Between now and April 2026, April 2027 and April 2028 (depending on when the scheme will apply to you), you’ve got the opportunity to get ahead of the game so you can hit the ground running, with all your admin processes up to speed.

Keeping in mind that MTD for Income Tax is intended as a simplification will help you keep a level head throughout it all.

Once you’ve mastered the basics and partnered your business to the best accounting software, MTD for Income Tax really will deliver results in terms of a better understanding of your finances, and reduced admin requirements.

Starting now, rather than putting it off, will mean your business will thank you now as well as later.

Editor’s note: This article was first published in September 2021 and has been updated for relevance.

You might think cyber security is a sophisticated cat and mouse game between criminals and IT professionals. Hackers sit hunched in dark rooms, staring at screens of green text and trying to penetrate the latest defences.

But that’s no longer true for the vast majority of cybercrime. At an epidemic level, criminals are targeting people. That means you, your colleagues, your family, and your friends.

95% of all successful cyberattacks have a human element involved.

What can be done? Put simply, you need to trust your gut so that, when phishing is attempted, you know instinctively something isn’t right.

Getting to that point involves understanding the threat, and how to respond. That’s what this article is about.

Here’s what we discuss:

Businesses are ripe for phishing

Businesses are an increasingly popular target for phishing.

The government’s Cyber Security Breaches Survey 2025 revealed that in 2024, 20% of businesses and 14% of charities had been victims of at least one cybercrime in the past year.

The survey found phishing was the most prevalent cybercrime, with 93% of affected businesses and 95% of affected charities encountering it.

The government’s Suspicious Email reporting Service (SERS) has received over 41 million reports since its inception in April 2020.

And this is probably scratching the surface. According to the CIFAS Global Anti-Scam Alliance report, 71% of victims do not tell the police. Often this is out of shame: “How could I have been so ignorant to fall for it?”

Consumers lose £1,400 per scam on average, the CIFAS report continues, with £11.4 billion being stolen in the 12 months up to November 2024.

What is phishing?

Phishing is best understood as social engineering: criminals manipulate you into doing something you wouldn’t choose to do otherwise.

This might be clicking a link, opening an attachment, sharing a password, providing a one-time authentication code, or moving money out of your account and into that of the scammer. Often it’s all of these!

Phishing attempts can arrive by text, social media messaging, emails, or even actual physical letters that arrive at your address.

You might think you would never fall for anything like this. After all, you’re nobody’s fool, right?

The UK Information Commissioner’s Office (ICO) explains that phishing relies on your belief that the message comes from someone you trust. That familiar branding is weaponised to lower your guard.

A friend texting you having lost their mobile. Your boss messaging you on WhatsApp, having setup a new account. Your bank calling you out of the blue to say your account has been hacked. Microsoft emailing to say your computer needs a vital security update.

In other words, phishing is fundamentally an exercise in extremely effective deception, rather than code-breaking.

Therefore, the most effective defences are human ones:

• Slowing down.
• Noticing inconsistencies.
• Listening to that “this feels off” sensation.

Why phishing is so effective

Phishing isn’t new. It’s been around since the mid-1990s, when scams like AOHell targeted AOL users by impersonating staff. That’s when it got its name – it took the ph- prefix from an earlier form of cybercrime known as phreaking, where hackers targeted the telephone infrastructure to get free calls.

The goal back in the mid-1990s was to harvest login passwords.

What’s changed since isn’t the psychology, but the scale and polish: spoofed websites involving flawless copycat branding, urgent pretexts, and – increasingly nowadays – AI-generated voice, text, images, or even video (including live video calls). These are known as deepfakes, and scammers are always quick to exploit the very latest technologies.

The site they send you to will look exactly like your bank. The voicemail message you get will sound exactly like your colleague, family member or friend. The text message will seem to authentically have come from your bank, with the correct spoofed name or number.

Sometimes the scammers won’t request money directly but will request you buy online giftcards, and share the codes with them.

But the core pitch is the same, and has been since those AOL days: “Act now before something bad happens.” Recognising that pattern is half the battle.

What a phishing scam looks like

Here’s a real-world, worked through example of what a phishing attempt on a business looks like.

1. The phishing hook

You get a text claiming to be from your business banking: “We’ve detected a suspicious payment. To secure your account, confirm here.”

There’s a link that looks right at a glance (e.g. santander-secure-bank.net).

Moments later, your phone rings. Caller ID displays your bank’s name. The caller calmly references the text and quotes a “case ID.” They may even tell you some personal details like your address or date of birth – all harvested from vast hacker databases that are easily accessible.

2. Applying the pressure

The caller says funds are moving right now, and they need to “secure” your account.

They may steer you to a very professional login page that’s a perfect clone of the bank.

Once you login, your phone pings – even though you’re still on the phone to the “bank” – and you find a one-time passcode has arrived.

You’re asked to read it out to them, “to verify security”.

Alternatively, you might be asked simply to login to your banking using your usual link or app, and transfer money to a special “holding account” where it’ll be “secure” until the bank can fix the issue.

3. The compromise

If you enter credentials on the fake site, they’re captured instantly. If you read out a passcode (or approve a push notification) the scammers use it in real time.

And just like that, they have control of your bank account. It’s that easy.

If you transfer money yourself from your bank account to the scammer’s account, that’s authorised push payment (APP) fraud. This is where victims are manipulated into sending funds and it’s easily one of the UK’s most prevalent types of fraud.

4. The exit

The caller “ends the case” and thanks you for your vigilance.

You hang-up and wipe a little sweat from your brow. Wow, that was close. Glad it’s sorted, though.

Minutes or hours later you see unauthorised transactions, or find that the “safe” account was the criminal’s.

Needless to say, if this happens in real life then you should call your bank immediately. Keep reading to find out how to do so.

What you could’ve done

The right move at the first sign of doubt – that feeling in your gut that something isn’t quite right – is to disconnect and dial 159 from a phone.

Dialling 159 routes you to an official automated service by which you can say the name of your bank. You’ll then be routed straight to them.

If you worry about remembering that number, think of it as a diagonal slash, from top left to bottom right on the phone keypad.

Ideally, dial it from a separate phone from the one you were called on. Scammers can keep the line open on landlines, for example, making you think you’ve hung up when you haven’t. They even play fake dial tones to make you think the line is free.

If there is genuine suspicious activity then, great news: by dialing 159, you’re now speaking to the correct people to fix it.

There’s also a service for suspicious texts and emails – forward emails to [email protected] and texts to 7726. Although this won’t provide instant feedback, it can help authorities close down the scammer accounts.

Advice for avoiding phishing scams for business

Here’s some tips for keeping yourself and your business safe from phishing:

1. Pause for thought: Urgency is a red flag. If it’s really your bank, it’ll still be true after a five-minute pause while you verify through your app or by dialling 159.
2. Channel switch to verify: Don’t reply. Don’t click their link. To investigate, use a trusted route you ordinarily use, such as your banking app, your usual online baking bookmark, or the bank’s official phone number (e.g. the one on the back of debit and credit cards – but definitely not the one in the email you might’ve received!).
3. Never, ever share a one-time passcode: One-time passcodes you receive through text messages or retrieve from an authenticator app should never, ever be shared – or even spoken aloud! It’s a prime way scammers authorise their frauds. If someone’s asking for one, stop. Nobody legitimate would ever do so. Similarly, if you get an authentication request out of the blue then don’t approve it.

Ensure you and your colleagues are educated with the government’s Cyber security advice for small to medium sized organisations. It’s an excellent and accessible resource.

But above all, never forget: We are all equipped with gut feelings, and when we listen they are a powerful defence mechanism.

Final thoughts

The online world is an amazing place, but increasingly, it’s a wild-west frontier where scammers exploit victims on a minute-by-minute basis.

Staying vigilant is key and, while this shouldn’t get in the way of your online activities, it should always be present.