The tax year end is coming up, and for a lot of people their company year end is too. Make sure that you are ahead of the game with the following tips.
Although this should be an ongoing exercise, a lot of people only have the time to look at this once a year, so make sure you get it done while it can still make a difference. Ask your accountant what works for your business and personal circumstances, but here are some of the most common things to consider.
- Make sure any available tax allowances have been used – any allowances that haven’t been used will be lost at the tax year end.
- Look at pension planning and contributions – the pensions regime is undergoing significant reform and with a general election coming up, levels of contributions and relief may well change.
- Review the timing of business expenses – does it make sense to bring some purchases forwards? Check with your accountant that it makes sense before splashing out!
- Look at the timing of dividend payments and bonuses to ensure the most tax effective position for the individual.
Company Year End
Before handing over to your accountant to start preparing year end accounts, make sure that everything is organised to make the process as painless as possible.
- Have all the bank accounts been reconciled and do the bank balances match the figures on the final bank statements?
- Review the aged debtors report to ensure that you agree with all the outstanding balances. Do any need to be written off as bad debt?
- Review the aged creditors report to ensure that you agree with all the outstanding balances. Are any payments not recorded because they were paid for in cash or with a personal card?
- Make sure you carry out a stock take and have a year end valuation for stock. Any stock adjustments need to be done before handing over to your accountant.
- Have you made claims for all your personal expenses such as mileage?
- Are all your supplier invoices and receipts neatly filed (either on paper or online) for easy reference?
Having a good idea of what you should be considering and setting aside some time to drive down into these questions will really ensure that you are ahead of the game at the end of this tax year.
Do you have any further tips for other retailers at the end of the tax year? Share them in the comments section below.