Getting the tax year off to a good start will help you to optimise your overall financial position. But you need to plan ahead.
Effective planning helps you to keep your business organised and compliant. It also enables you to maximise deductions, minimise liabilities, and optimise your overall financial situation.
Taking a proactive approach to managing finances and tax obligations is essential. Here are our top tips to prepare:
Keep updated financial records
Keeping on top of your financial records will allow you to evaluate your current position.
Make sure that you maintain precise records and have documented all of your income, expenses, deductions and reliefs claimed throughout the year.
This will help you to track your performance and uncover risks and opportunities that you can work on.
Having updated records will also ensure the submission process at the end of the tax year is much smoother.
Make use of tax reliefs
Consider the following tax reliefs and allowances to minimise your liabilities:
- Capital allowances: The UK Government is implementing a 100 per cent tax deduction for capital expenditure on plant and machinery from 1 April 2023 to 31 March 2026.
- Travel expenses: Companies can claim tax relief on travel expenses if they are for business purposes, and it is essential to keep the expense receipts.
- Reclaim VAT: If your business is VAT-registered, you can claim VAT on items used for business purposes.
There may also be industry-specific tax reliefs that you could claim, such as research and development (R&D) tax reliefs.
You need to be aware that there are upcoming R&D reforms that come into force on 1 April 2023 as well as an ‘enhanced credit’ for loss-making R&D-intensive businesses.
Get expert support
Keeping on top of deadlines and knowing how to minimise your tax liabilities can be challenging. So, why not consider hiring a bookkeeper or accountant?
Getting expert support will reassure you that your business remains compliant whilst getting advice on how to maximise your accounts.
This will ensure you have more time to focus on making informed decisions and elevating your business.
Need support preparing your business for the new tax year? Contact our team of tax experts today.