- File your Self-Assessment Tax Return on time before 31st January. The tax year ends on the 5th April, you have to have your return submitted
before the 31st January of the following year. Miss the deadline date and you will incur a £100 fine. After 3 months this will start to go up by £10 per day up to a maximum of £900!
- Pay your Self-Assessment tax on time on or before 31st January or 31st July and save yourself automatic penalties and interest. If you are one
month late the Inland Revenue can increase the tax due by 5%, or £300, if greater. After that it will ratchet up another 5% of the outstanding tax every 6 months! In addition daily interest on
the outstanding tax will also be running up the total amount owed to HMRC.
- Payments on account for the next tax year. If your tax bill is greater than £1,000 then you make 2 payments on account for the following
year. The deadline for the first payment is January 31st, the deadline for the second July 31st. If your taxable income has reduced in the current tax year you are able to make a claim to
reduce these payments on account. Please call and we will advise.
- File your Corporation Tax returns on time. Filing date is no later than 12 months after the accounting year-end.
- Pay the Corporation Tax on time. Although the CT600 Tax Return filing deadline is 12 months after the Year End, the payment date deadline
is actually 9 months after the year end!
- Filing your Company Accounts with Companies House. The deadline for this is the same as paying your Corporation
Tax Bill; 9 months after the year end.
- File your tax return quickly if you have tax to pay. ( You should not wait until January!! )You will know
well in advance how much to put by before the payment deadline of 31st January.
- Self-employed or in partnership? Don't forget that you will pay tax on your profits, not on the money you draw out.
- NIC - Avoid £100 Fine! Beware this fine. Persons commencing self-employment have 3 months to register before a fine is triggered. Please
let us know if you are newly self-employed and we will deal with the formalities.
- NIC - Class 2 Contributions These apply to all self-employed. They will be charged each year on your Self Assessment Tax Return and are no
longer payable monthly.
- VAT - Reconcile sales for year with your VAT Returns. Every quarter when you fill in box 6 on your return, "Total value of sales" you are
giving the VAT man a valuable piece of information. When he comes along for the periodic visit he will add up the value of sales you have returned and compare them with your accounts. If the sales in
your accounts are higher than the outputs, sales declared on your VAT returns then watch out. He will seek to raise an additional assessment.
- The myth of Entertaining customers in the UK. It is not a tax deductible expense, but if you are registered for VAT there are
circumstances when you are allowed to claim back the input tax on your share of the bill.
- Capital Allowances. The Annual Investment Allowance (AIA) means you can claim 100% of the cost of most plant, machinery, equipment, etc
up to a total value of £200,000.
- Tax Relief for purchase of Energy Efficient Equipment. You can claim a 100% write down, or capital allowance for tax purposes. Even some
cars are covered with low CO2 emissions.
- Valuing Stock to save tax. If your tax bill for the year is looking decidedly on the high side, take a fresh look at your stock valuation at
the end of the year. Stock should have been valued at cost, but can be valued at net realiseable value if this is a lower figure. In simple language this means valued at what you could get for it.
Lowering the value of stock will £ for £ reduce taxable profits.
- Watch out for the contractor trap. You may consider a freelance worker self-employed but the Inland Revenue may not, and guess who is liable
to pay the tax and NIC if the taxman proves to be right. This is the very latest area to go under the Inland Revenue microscope. If you work with self-employed workers check out their status with a
specialist advisor. A little attention now, utilising proper contracts, may save you an expensive tax and NIC bill.
- Keep all those business receipts. If you want to be sure that an expense is verifiable, keep the receipt/invoice. However getting a receipt
from a parking meter when you are visiting a customer can prove difficult. So speak to your accountant at the year-end and make sure he has a list of all those items that are not recorded in your
books because you couldn't obtain a formal receipt, i.e. car parking, car washing, laundry and cleaning of overalls and so on. As long as the expense is commercially justifiable there should be no
problem incorporating the estimated items.