The UK tax year is coming to an end on 5th April and now is the ideal time for business owners to begin planning to ensure that financial affairs are in order.
In this website article, we’re sharing some top tips to guide business owners through the planning process and to help them save money on their taxes.
- Organisation Goes a Long Way
When it comes to year-end tax planning, organisation is key. Make sure all your paperwork is filed correctly and in order. This will include receipts and documents that you’ll need for deductions and credits.
2. Use Tax Breaks
In order to reduce your business’ taxable income, you may be able to access tax breaks and credits. Ensure to conduct thorough research before the year-end to see which options may be available to you.
3. Review Your Business’ Structure
Have you taken time to consider your current business structure? Is it the most tax-efficient option? For example, if you’re a sole trader, you might be able to save taxes by incorporating your business.
4. Review Pension Contributions
If you’re self-employed or the owner of a business, you can claim a tax deduction for pension contributions. Ensure to review your options before year-end to make sure you’re taking advantage of all the available benefits.
5. Pay Expenses
If you have any expenses that can be deducted in the current tax year, it could be beneficial to pay them before year-end to reduce your taxable income.
6. Defer Income
If you’re expecting a large source of income within the next tax year, consider deferring some of it until after year-end in order to reduce your current tax liability.
7. Tax-Efficient Investments
As part of your financial planning, you may find that investing in some ISAs and pensions could offer tax benefits that could help reduce your liability. Do your research and if you decide to go down this route, make sure you invest before the year-end.
8. Ask for Help
If you’re unsure about year-end planning, or any aspect of your company’s finances, consider consulting an accountant or a tax advisor. They can help to guide you through your options and develop a tax strategy that’s suited to your business’ needs and requirements.
If you need assistance, the M.B. McGrady team will be more than happy to assist. Get in touch with us today by emailing: info@mbmcgrady.co.uk or by calling: 028 9031 6950.