Many businesses and companies will be approaching their accounting year-end in the next few months. The weeks leading up to this present opportunities for businesses and companies to consider what steps might be possible to reduce tax liabilities for the current year. It is important to act now: action is normally required before the year end date.
Now is also a good time to look forward to the new financial year and start planning accordingly. Certain changes to tax rules take effect at the beginning of the new financial year, so it is important to understand what impact these changes may have and plan your tax affairs accordingly. With tax law, the economy and your own circumstances constantly changing, it is essential to have a tax planning strategy in place.
Ask yourself:
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Do you know how much tax will be payable on your projected profits or income for the current year?
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Do you understand what reliefs and allowances you are entitled to, and have you used them fully in respect of the current year?
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Do you understand what changes to tax law may come into effect at the end of the current year, and what opportunities or problems these may present to you?
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Have you checked whether time limits for claims that may be available to you might elapse at the end of the current year?
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Have you spoken to a financial adviser to review your current year position and plan for next year?
If your answer is no to any of these questions, then you should act now. If you do not act now, you may be unable to undertake relevant tax planning, waste available tax reliefs, prejudice forward tax planning, and you may ultimately miss out.
Click here To view our full Tax planning leaflet with planning ideas for businesses and companies
Scott Burkinshaw
Scott is Tax Partner at Shorts, specialising in providing strategic corporate and personal tax advice.
View my articlesTags: Business Taxes
