Monthly Archives: January 2023

Year End Process – Things to Consider

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Things to think about before your year end…  These may help reduce tax 

The best thing you can do is book a meeting with us as early as possible before your year end:

  • Making a larger pension contribution
    • Paying into a company pension is a tax efficient way of putting money away for your future. The true cost to putting £10,000 into a pension is currently £8,100. 
  • Buy any large assets before year end
  • Have all director expenses/mileage been put through Xero
  • Do the statement balances on the bank accounts on Xero match your bank balances?
  • Review salaries and bonuses – year end is a good time to declare bonuses to help reduce tax bills 
  • Consider R&D – have you taken on any eligible research and development projects in the year that could receive accelerated tax relief. 
  • Ensure your sales ledger is up to date and overdue invoices are chased. Love Accountancy can help you with this if necessary. 

Help us to help you

  • Help us get your accounts completed earlier by making sure Xero is as up to date as possible now, rather than later… 

Smaller considerations: 

  • Staff events – each year a company can pay for annual staff events up to £150 (including VAT) per guest which is allowable for Corporation Tax relief. The rules are that all members of the company must be invited and a spouse or partner can attend provided the cost for the couple does not exceed £300 (including VAT). It will be tax free provided the limit is not exceeded, if it does the whole cost is taxable, not just the excess. This is not an allowance, you must include the actual cost of the event and have receipts to support this.
  • Stock up on office supplies – for example printer cartridges, paper, stationery or other general office supplies.
  • Consider trivial benefits for employees and directors – £50 limit : – remember these must not be a “reward” or be considered contractual in nature

Things for Love Accountancy to consider:  [LINK TO INTERNAL HUB]

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