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As you approach the end of the year and look forward to celebrating the start of 2014, it is a good time to plan your business finances. With this in mind, here are some tax tips which should get you off to a great start and help you to achieve financial stability for the next 12 months.

Keeping records up to dateTime For Tax

Make sure your business records are up to date so you can transfer the details to your Self Assessment tax return. The deadline for submitting tax returns is January 31 and if this is missed, you will incur large penalties. What’s more, completing your business records in a timely manner will enable you to use actual figures rather than estimates.

Be sure to claim everything

Make sure you are claiming for as many business expenses, tax reliefs and allowances as possible. Check your business records to make sure you are claiming the maximum amount. The rent on business premises, employee costs, utility bills and more can all be offset against your profits.

Capital allowances and pensions

While you can’t claim expenses for capital expenditure, you can claim capital allowances. This typically covers plant and machinery, with an allowance also provided for depreciation. Claim for capital allowances within 12 months of the deadline of the relevant tax return, and check whether you have bought any business equipment, plant or machinery.

You should also pay the maximum pension contributions for the current tax year; this way you can claim tax relief.

Monitoring annual turnover

Check your annual turnover, as exceeding a specified amount will mean you have to register for VAT. If you don’t register to complete VAT returns and you have exceeded the threshold, you may be charged penalties or even be required to pay a security.

Finding the most suitable set-up

Consider whether you have the most suitable business structure for your circumstances. If your profits exceed the higher rate threshold, you may be better off forming a limited company rather than being a sole trader.

The finer details

Take time before the start of the New Year to compare prices of business insurance, utility bills and your suppliers. Many companies are looking to secure business before the tax year end and may be offering incentives which will bring value to your business.

Of course, a professional advisor will be able to ensure you get off to a great start in 2014, but it also pays to follow the tips above.

 

 

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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