Here’s our Top 10 Insights to think about as you finalise your accounts and tax position for 2020/21.

First and foremost – the most important tip to being prepared for the financial year end is to get your documentation organised, so that it’s easy to refer to should you have any queries. By that I mean bank statements, invoices, receipts, insurance documents, employee records and the like.

Some key areas to consider as you approach the end of year:

Contracts. Have you invoiced retentions that are not payable till the next tax year? If they are payable in the current year they are taxable as income.

Credit notes. Look out for any credit notes issued to customers after balance date. You may be able to apply them to this tax year

Debtors. Review your debtors. Did you take reasonable steps to recover all debtors?

Bad Debts. If you write off bad debts before 31 March, you should be able to claim it as a deduction.

Employee expenses. Amounts owing to employees for holiday pay, bonuses etc. can be claimed in this financial year if you pay them within 63 days of balance date.

Repairs and maintenance. Undertake planned maintenance or repairs before year end to ensure a tax deduction.  

Stock. Do a stocktake. Dispose of obsolete stock by year end or write it down to its net realisable value. Make sure everything is squared away for the end of the tax year:

Home office expenses. This includes power, rates, rent or interest on your mortgage, insurance, repairs, phone, and more.

Fixed assets – Any assets that you are no longer use or don’t intend to use in the future can be written off.

Higher Income. Is your income significantly higher than the previous year? Consider whether an additional voluntary provisional tax payment may be appropriate or may be align your tax payments with turnover.

We’re just scrapping the surface of areas to look at in preparation for year-end but should you have any queries relating to any of the above items, or in relation to gearing up for year end, don’t hesitate to call us on 09 309 3222, we’re more than happy to help.

Insight CA Ltd