Planning your business year end

January 9th 2015

Most of the tax planning that can be employed to reduce your business tax liabilities need to be considered and implemented prior to your year end date.

If you are in business, you should consider at least one planning exercise with your professional advisor before the end of the tax year. This should be a priority.

Here’s why:

  1. When deciding on whether to make (or not make) a purchase of equipment or a vehicle, you should consider carefully the tax effects this may have. There are significant investment allowances available and appropriate action can result in cash flow advantages - securing tax relief sooner rather than later.
  2. In a similar vein, there is still an opportunity to maximise tax relief by considering the timing of significant overhead payments that are not recurring - for example, repairs to plant or buildings or significant training costs. Should you commit before or after the tax year end?
  3. If you operate your business as a limited company have you ensured that you have sufficient post tax profits, for the current year and brought forward, to cover dividend payments to shareholders?
  4. Again, in a company environment, are directors’ loan accounts overdrawn? Can this be rectified before the end of the trading year? What are the personal and Corporate Tax consequences?

For many of our business clients this pre-year end planning is the norm - an essential part of our service. If you would like to organise your planning session please call DSC Chartered Accountants in Harrogate so we can have a discussion; once your trading year end, or the tax year end passes, opportunities to save tax may be lost.