Year-end business tips with #seamountbiztip
As we near the end of the 2016/17 tax year you can make the year-end process run smoothly by following some of our tips below:
- Consult your accountant.
Your accountant should be working with you throughout the year and not just at the year-end but if you haven’t heard from them for a while, contact them before the year-end happens to discuss any tax savings you may be able to make before the year finishes.
- Keep your records tidy.
Many people throw their invoices and receipts in a bag/box and then panic when the deadline approaches. Keep your records up to date throughout the year, doing 10 minutes every week is much better than losing sleep at the year-end.
- Have you bought any capital items?
Keep the receipt safe because your accountant will need it to off-set anything with a useful life over one year against your Annual Investment Allowance, reducing your tax liability.
- Use your own car?
Log the business mileage so they can be used to make a claim against your profits, reducing your tax liability.
- Plan your spending.
Do you need to buy some stock for an upcoming order that happens after your year-end? Buy the stock before and you will save tax.
- Be timely.
When your accountant contacts you to ask for your records, get them in. The quicker your return is done and submitted the quicker you’ll get any tax refund back. AND you’ll avoid late filing penalties.
- Should you be VAT registered?
Do you track your sales to make sure that you haven’t breached the threshold? Get your accountant to do a VAT exercise to make sure that you are on the correct VAT scheme. You may save money by using the Flat Rate scheme.
- Work from home?
If you work from home HMRC allows you to use a scientific method for calculating what expenses you can deduct, based on the square footage of your home.
- Be nice to your staff.
Use the many tax free benefits available to you and your employee. It makes good tax sense and your employees will feel valued.
- Pay yourself.
Salary, dividends and benefits in kind need to be considered to make your remuneration package the most tax efficient.
For a quick business review contact us for a FREE initial meeting.