Are you ready for the end of the tax year?

end of tax year

In the UK, the tax year commences on April 6th and ends on April 5th of the following year, also known as the fiscal year.

The UK tax year is not to be confused with a company year-end. The company year-end can be any date chosen by the company and is not necessarily the same as the tax year-end in April.

It is important to know that the UK tax year determines when individual tax liabilities are assessed, when tax returns must be filed, and the timing of tax payments. It also impacts eligibility for specific tax allowances and deductions. Download our free tax relief guide for an in-depth look into tax relief.

Why is the end of the tax year important for businesses?

At the end of the tax year, businesses in the UK face important decisions and actions. This period offers a valuable opportunity to assess financial performance over the past year and plan budgets for the upcoming year. This may involve setting targets for revenue, expenses, and capital expenditure.

The end of the tax year can also affect how certain employee benefits are taxed and reported to HMRC. Businesses that offer such benefits must be aware of these implications and comply with the relevant regulations. These benefits will normally need to be reported to HMRC on a form P11D by July 6th each year.

The end of the tax year is an important time for UK businesses, as it influences various aspects such as tax filings, payments, budget planning, and capital allowances. Therefore, companies must be prepared ahead of these deadlines and requirements to avoid any potential negative consequences on financial performance.

How do you prepare your business for the end of the tax year?

Here are some steps you can take to prepare your business for the end of the tax year:

1. Review your financial records

Make sure that all your financial records are up-to-date and accurate. This includes income statements, balance sheets and any other relevant financial documents.

2. Speak to a financial advisor

It’s always a good idea to seek advice from a professional advisor to ensure you are taking advantage of all available tax deductions and credits. They can also help you navigate any changes in tax laws that may affect your business. You may be able to make tax efficient investments in pensions or ISAs.

3. Plan for any upcoming tax payments

Make sure you have set aside enough funds to cover any tax payments that will be due at the end of the tax year. This will help you avoid any cash flow issues and potential penalties for late payments. Self assessment tax is usually payable on January 31st and July 31st each year.

4. Consider any capital expenditures

If you are planning to make any significant capital expenditures before the end of the tax year, now is the time to do so. This can help reduce your taxable income and potentially lower your tax bill.

5. Don’t waste any tax allowances

It may be sensible to sell some assets to ensure the Capital Gains Tax Annual Exemption (£6k in 23/24, £3k in 24/25) is not wasted.

6. Stay Informed

Keep up to date with any changes in tax laws or regulations that may impact your business. This will help you make informed decisions and avoid any surprises when it comes time to file your taxes.

By following these steps and staying proactive in your tax planning, you can ensure that your business is well-prepared for the end of the tax year and in a strong financial position moving forward.

At 360 Accountants, we offer a wide range of accountancy services including tax services and advice.

Call 01482 427360 or email help@360accountants.co.uk to book a consultation.

Latest Blogs

SidebarCTA

Get a call back

Call Back
Sending

Menu