It’s the financial year end for a lot of people and businesses, so here’s a few pointers to think about as you finalise your accounts and tax position for 2015/16.
First and foremost – 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. (more…)