Once we’ve all finished with our Tax Returns for this year and have passed the 31 January date for submission, it’s time to prepare for the next important deadline of 5th April and the end of the tax year is near.
With just a few months left before the end of the current tax year, those who have income from business or property sources and have not yet considered their tax planning options should do so as soon as possible.
Most tax planning opportunities expire on 5th April and you may lose the chance to ensure that you are making the most of any clauses that allow you to save tax.
- Investing in new equipment and vehicles that attract capital allowances
- VAT: making sure you are using the most advantageous method to calculate VAT each quarter
- Deciding whether to involve your family in the business to save tax
- Deciding whether to take bonuses or dividends from your business in this tax year which ends on 5th April
- Calculating what pension payment you need to make as a lump sum payment into your SIPP in order to ensure that you are only taxed on your taxable income at the basic rate of tax
Landlords should also use the remaining time to review their positions. Those who have borrowed heavily to grow their property portfolios should be considering the effects of the gradual reduction in tax relief on their mortgage and finance interest. It may be time to look at restructuring your portfolio - see our special section for BTL Landlords here.
A thorough review should include a realistic estimate of your various income sources for the tax year. This would enable you to:
- Arrive at a realistic estimate of your taxable profits and income for the current financial year
- Take decisions based on this estimate that will benefit your longer term goals
- Consider the effects of the current year’s performance on your business investors, your bank and your team.
- Consider the ability of your business to sustain your current and future withdrawals from your business.
Another word for planning is forethought.
If you fail to plan, you are likely to end up considering the reasons why things have not worked out as you expected; you will stare at the open stable door and the empty stall and wonder why you never repaired the lock.
At THP, we’re here to help you make sense of your business’ tax and accounting needs in order to allow you focus on what you do best – releasing more of your valuable time to work ON your business. To find out more about THP and the tax and accountancy services that we offer, call 0800 6520 025 to speak to a member of our friendly team today – we look forward to hearing from you!
About Karen Jones
Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.
With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.
Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”
Karen’s specialist skills:
- Personal Taxation
- Tax Efficient Planning
- Trust Administration