Our tips on a successful tax year

Well, here we are again, the end of March. This means one thing in the financial world; The end of the tax year awaits. But are you ready for tax year 2023-2024?

March is also a great time for businesses to review their financial situation, identify areas for improvement, and plan ahead. What are your plans for your business? Do they include new contracts and the requirement for new machinery and equipment? All this should be factored into your budget for the next financial year.

We have collated some tips on making this coming tax year successful for you and your business.

#1

Review your employee information. To ensure that your payroll is up to date and accurate, we advise businesses to check employee information, including contact details, tax codes and rates of pay.

#2

It is your duty as an employer to ensure your employees are on the correct tax code. HMRC update updates its tax code annually. Therefore, it is important to check that each employee is on the correct one.

#3

While collecting and checking the new tax codes, this will also work hand in hand with checking for any changes in National Insurance contributions. The rates and thresholds change annually, so ensuring that the employees pay the correct amount is important.

#4

Although Super-Deduction comes to an end on 31/03/23, the government have introduced Full Expensing (FE), which enables businesses to deduct 100% of the cost of certain plant & machinery from their profits before tax. This comes in on 01/04/23 and applies to spending on main rate equipment, including, but not limited to: warehousing equipment, bulldozers, excavators, tractors, lorries, printing equipment and vans. For other plant & machinery which doesn’t qualify, such as solar panels & thermal insulation, businesses can deduct 50% from their profits during the year of purchase. 

#5

We discussed in our new year blog to think about your financial goals. The new tax year is an even more important time to do this. Whether it’s making a note of target expenses or investment plans, having those clear budgets in your head can affect your decision-making about any spending you need to make this coming tax year.

#6

Don’t get caught out! Don’t forget that the tax year is the same length as a normal year, 365 days, so plan ahead. We always advise getting your ducks in a line in Q1, but a 12-month plan is more effective and beneficial to businesses. Things can happen within a business that isn’t expected. What if one of your assets was to fail or the client didn’t pay on time? Can you still pay your staff? Having that contingency available to help you in such situations is important.

We are happy to come and go through the plans for your business and help you facilitate any growth plans you have.  There are many options to help you plan for the new tax year. Whether it be invoice financingrefinance or asset finance

We want to ensure that tax year 2023-2024 is your best yet!

Get in touch today.



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