This new financial year is set to look slightly different due to the new tax rules in the UK. In order to plan and manage your business’s tax affairs accordingly, it is important to note the possible impact these changes may have on your business. You can do that – and save money along the way - with optimal tax planning.
With the start of the new financial year in April, it is important for you to act now to reduce tax liabilities for the current year. Business tax planning does not have to be a stressful process with these quick tips.
Calculate possible tax liabilities
Calculating the tax liabilities that might result from anticipating profits allows your business to assess the rate of tax they will pay. To make a better evaluation, business owners can compare the current rate to the rate they have been paying during the past few years. Doing this can also help them decide whether they may have to start paying taxes in instalments.
Claim full relief entitlement
Businesses are given two years from the end of an accounting period to claim tax reliefs in the form of research and development tax reliefs. It is imperative that businesses claim their full entitlement before the deadline expires.
Be mindful of deadlines
The timing of major acquisitions and disposals is important to ensure that taxable benefits will not be gained from delaying or advancing them. Delaying the deadline may cause a pushing back of tax payment dates, while advancing may allow better utilisation of the business’s losses and tax reliefs.
Know your business’s financial transactions
This is, by far, the most important part of the tax planning process. You must be aware of the cash inflow and outflow of your business to better manage your business. You must be aware of the amount of tax payable on your business’s projected profits or income for the current year.
Aside from that, you need to understand the types of reliefs and allowances your business is entitled to. Have you maximised their benefits in the current year? If you understand these, it will be easier for you to assess that tax law changes that will come into effect after 5 April 2015. Ensure that you have prepared your business for the possible challenges and opportunities these changes may present.
Jumpstart the new financial year with efficient tax planning. It may be wise to consider seeking assistance from financial advisers and accountants when you review your current year position. Their help can also do wonders for your tax planning strategy.
Looking for a specialised set of tax planning strategies? Talk to our team of experts. With our extensive knowledge of taxation laws in different countries – including taxes in the UK - we’ll certainly be able to provide solid assistance and sound advice for ensuring your business’s compliance.