A new tax year arrives 6th April 2019. For many small to medium-sized businesses, the end of one tax year and the beginning of another brings a number of unique challenges. Not only is it a busy time for businesses, but it’s also busy for employees as well. The Easter holiday and upcoming school holidays could put a crunch on your internal resources. Business owners will need to ensure they have enough time to meet important deadlines before the rush of the summer season starts.
Is your business ready for what’s ahead? Understanding what your business needs to do and when it’s all due can help you can sail through the end of the tax year and be better prepared for the next one.
What You Need To Do For the End of the Tax Year
Tie up all those loose ends.
The end of the tax year is the perfect time to make sure your records are in order before you move onto the next year. Not only will this make filing your taxes easier, but it will also make record keeping a lot easier.
– Update all your records. If you’ve been ignoring that data entry, now is the time to get it done. Make sure all your records are up-to-date, including your expenses, income, and staff salaries.
– Chase down payments on invoices. In an ideal world, you’d have all your invoices paid by the end of the tax year for the easiest reporting possible. While it’s unlikely, the more payments you can bring in before the tax year closes, the better off you’ll be.
Prepare everything you need to file and report.
There are many things that you’ll need to report to your shareholders, employees, and the UK government. Knowing what they are, how to file them, and when they are due will take a lot of the worry out of the situation. It’s a good idea to consult with a professional accountant on this process. They can help ensure you are doing everything your business needs to do, especially if this is your first tax season. Every business will be a little different, but most businesses will need to do the following:
– File your final Full Payment Submission before the end of the tax year. It’s required even if you only have one employee. You can find more information about Full Payment Submission on the Gov.UK website.
– File your company tax return (CT600), income statement, statement of financial position, and footnotes with HMRC. You can file your statement of financial position and footnotes with Companies House at the same time.
– Prepare, print, and distribute P60s to any of your employees. They’ll need these for their own tax records.
Know what’s coming in the next tax year.
When done with your filing, take a few minutes to read up on any changes to your company’s tax situation in the 2019/2020 tax year. There aren’t many, fortunately, but it’s still worth a look to better prepare yourself for the tax year ahead. For instance, personal allowances will increase from £11,850 to £12,500. An accountant can give you more insight into any changes that could impact you.
Important Tax Dates to Add to Your Diary
– 5th April 2019. This is the official end of the 2018/2019 tax year.
– 6th April 2019. This is the official start of the new tax year for 2019/2020.
– 31st May 2019. Deadline to hand out P60s to your employees.
– 5th April 2020. The last day you can file your company tax return for the 2018/2019 tax year.
– 6th January 2021. The last day you’ll be able to pay any corporation tax owed for the 2018/2019 tax year.
With the right planning, the end of the tax year doesn’t have to be an overwhelming prospect for your business. But if you do end up burning the midnight oil, we’ll keep the lights on for you. For more information and tips about keeping your small business running smoothly, visit our website.