The end of the 2019/20 tax year is rapidly approaching on 5th April, and like any new year’s resolutions it’s time to review and revise any tax changes for maximum efficiency once the new 2020/21 tax year starts on 6th April.
Get your accounting records up to date for tax year end
It’s important to make sure that your bookkeeping records are up to date at tax year end, especially if you submit Self Assessment tax returns or if it coincides with your company’s financial year end.
All customer and supplier invoices, payroll payments, and expenses should be accounted for, and the business banking reconciled. It’s a good time for debt collection, too – especially if your overdue invoice is to another business who also wants to tidy their accounts for year end!
Prepare for April 2020 statutory changes
Changes to financial legislation, such as statutory pay, tend to come into force at the start of a new tax year.
This list isn’t exhaustive, so it’s sensible to check with GOV.UK to ensure your business is prepared for any changes coming into effect at the start of the new tax year. Much better than incurring any unwanted fines!
Review the previous year
We admit it, as accountants we’re always going to recommend regularly reviewing your accounting records. Tax year end is a good time to get granular with the previous year’s accounts, and identify areas that may need extra attention in order to maximise efficiency for the year ahead.
Consider forming a limited company
If you already operate as a sole trader and feel incorporating a limited company would be more tax efficient for the business, then tax year end is a terrific time to make the switch.
Talk to us to discuss how we can help your business at tax year end, including forming limited companies. Select the Live Chat button, or get an instant online quote for our accounting services.
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