There are many areas in life where good documenting a solid routine and healthy habits can produce serious improvement.
And it’s no different when it comes to balancing your books.
With that in mind, Heelan Associates is here to wish you a Happy New Tax Year and encourage you to explore what changes might allow your business to be more financially coherent and effective.
Think of it as spring cleaning for your bookkeeping practice.
The first and most obvious objective is keeping good records. Losing tax deductions through poor documentation is a common, but easily avoidable issue. One way around it is to get in the habit of photographing and digitally filing receipts, which could save you hours of sorting through paper copies.
Another suggestion is to get your tax return done early. Preparations for the 2024-25 tax year should start with your tax return for 2023-24. Knowing in advance what tax you need to pay by January 31st next year is great for planning purposes.
If you’re due to pay tax in July, known as a ‘payment on account,’ submitting an early return can often have a positive impact, as HMRC can change the amount required on account based on real figures from the previous year rather than a “best guess” extrapolation.
For those limited company owners out there, the next recommendation is to review your salary level to make sure it’s as tax-efficient as possible.. Speaking to a professional to be sure can often be the best approach.
Also, remember to plan any pension contributions. Think about whether you want to contribute to a pension this year, and how much you will pay into that pension. As a limited company, using only company ‘employer contributions’ can often result in a better overall tax saving.
Again, this is entirely dependent on your circumstances, so seek financial advice if you want the best result.
That leads us to last, but definitely not least, find a good accountant and use them.
Developing a relationship with a trusted advisor is one of the best investments you can make to save you and your company money long-term.
Finance can sometimes seem complicated and everyone benefits when getting guidance from an expert. There are plenty of firms out there where you can hire hourly or on an as-needed basis.
Co-Director of Heelan Associates, Dan Heelan, says: “Once you build a second-nature routine of filing away documentation and keeping up-to-date with any changes year upon tax year, the easier managing your finances will be. There’s nothing worse than scrambling to find paperwork that you didn’t file properly or information you weren’t privy to earlier in the year. Save yourself, your employees and your accountant the stress by establishing habits now that will allow a much smoother experience come the new tax year.”
