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Preparing for the tax year end

 

It’s welcome news that HMRC have said they will help businesses and individuals affected by recent floods.

 

HMRC has agreed to:

·         Instalment arrangements where taxpayers are unable to pay as a result of the floods

·         A practical approach when individuals and businesses have lost vital records to the floods

·         Suspend debt collection proceedings for those affected by the floods

·         Cancel penalties when statutory deadlines have been missed due to the floods. 

 

Even with HMRC’s announcement, it still pays to prepare your accounts, because the later you leave it, the more tax you’re likely to pay.

Be prepared

If you're up to your ears in dealing with the effects of the recent floods, you may have put preparing for your year end on the back burner. After all, it’s difficult to worry about something that happens in April when we’ve still got the vagaries of the weather throughout March to get through.

 

To ease the burden, we’ve compiled a list of things you can do to now to prepare for your year end:

 

·         Chase overdue invoices
This turns work in progress into money in the bank, makes your accounts as accurate as possible, and identifies any bad debts to write off.

 

·         Sort out your expenses
Every pound you claim as a legitimate business expense is a pound off your company profits.

 

·         Get all your paperwork together
Every statement, receipt, payment into and out of your accounts provides the paper trail that HMRC likes. And when they like something, they are less likely to raise an investigation. 

 

·         Top up your ISA and pensions
The deadline isn’t flexible, and if you want to make the most of your allowances you need to act before 5 April 2014. In other words, if you don’t use it, you lose it.

 

Read our Year-end Tax Guide 2013/14 for more detail and planning pointers.

 

Call us on 01628 631056 or complete our contact form if you need any help with your financial planning.