{"id":749,"date":"2019-12-17T00:00:00","date_gmt":"2019-12-17T00:00:00","guid":{"rendered":"https:\/\/srcadvisory.com\/year-end-checklists-things-to-consider\/"},"modified":"2020-04-14T11:24:25","modified_gmt":"2020-04-14T11:24:25","slug":"year-end-checklists-things-to-consider","status":"publish","type":"post","link":"https:\/\/srcadvisory.com\/year-end-checklists-things-to-consider\/","title":{"rendered":"Year-end checklists \u2013 Things to consider"},"content":{"rendered":"<\/p>\n
\n

Year end is an important point for a company and an opportunity to finalise finances and tie up any loose ends to benefit from any available allowances or tax breaks. \u00a0So, it\u2019s important to consider the company\u2019s, and your personal position, before the last day of the year.<\/p>\n

Pensions<\/strong><\/u><\/p>\n

\nIf you do not already have a pension, now may be a good time to consider one. Using your company to plan for your future is worth considering as payments towards a pension will reduce your corporation tax by 19% of the contribution made. So, if the company has cash going spare it may be a good option.<\/p>\n

\nA simple example is: \u2013<\/p>\n

\nCompany Profits\u00a0\u00a0 \u00a0\u00a3100,000<\/p>\n

\nCorporation Tax\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a319,000<\/p>\n

\nDividends Available\u00a0\u00a0 \u00a0\u00a381,000<\/p>\n

\nIf you decide to make a \u00a310,000 one off pension contribution this will change to:\u00a0<\/p>\n

\nCompany Profits\u00a0\u00a0 \u00a0\u00a390,000<\/p>\n

\nCorporation Tax\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a317,100<\/p>\n

\nDividends Available\u00a0\u00a0 \u00a0\u00a372,900<\/p>\n

\nIn this example, if you\u2019ve already taken \u00a370,000 in dividends and do not intend to take any further, this situation is perfect. \u00a0However, if you do plan to take more, or have taken out \u00a380,000 already, you won\u2019t be able to make a pension payment due to insufficient profits unless your company as reserves from previous years.<\/p>\n

Asset Purchases<\/strong><\/u><\/p>\n

\nThe timing of the purchase of an asset will directly affect the timing of the tax saving. For example, If your year end is 31st March 2020 and you purchase equipment costing \u00a33,000 on the 28th March, it will reduce the Corporation Tax due on or before 31st December 2020. \u00a0However, if you incur the cost a few days later and after the year end, it will reduce the Corporation Tax due on or before 31st December 2021 \u2013 a whole year later!<\/p>\n

\nThere is no point buying something you don\u2019t need to simply reduce your tax by 19% so make sure that you have thought about what you need in advance and plan accordingly!<\/p>\n

Accounts & Bank Statements<\/strong><\/u><\/p>\n

To consider investing into a pension scheme or checking cashflow to allow a purchase of an asset, you will need to ensure the company accounts are up to date.
\nAre all invoices entered to date?<\/p>\n

\nDo you need to chase up payment of outstanding invoices?<\/p>\n

\nHave you added in all your expenses?<\/p>\n

\nWhat about mileage claims?<\/p>\n

\nMake sure you consider these before year end to maximise you tax position for the year.<\/p>\n<\/div>\n

\n

SRC-Time Ltd
\n2nd Floor
\nStanford Gate
\nSouth Road
\nBrighton
\nBN1 6SB<\/span><\/p>\n

T: +44 (0) 1273 326 556<\/a>
\nF: +44 (0) 1273 733 827
\nE: info@src-time.co.uk<\/a><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Year end is an important point for a company and an opportunity to finalise finances and tie up any loose ends to benefit from any available allowances or tax breaks. \u00a0So, it\u2019s important to consider the company\u2019s, and your personal position, before the last day of the year. Pensions If you do not already have […]<\/p>\n","protected":false},"author":4,"featured_media":750,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[19],"acf":[],"_links":{"self":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/749"}],"collection":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/comments?post=749"}],"version-history":[{"count":0,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/posts\/749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media\/750"}],"wp:attachment":[{"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/media?parent=749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/categories?post=749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/srcadvisory.com\/wp-json\/wp\/v2\/tags?post=749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}