Planning For The Tax Year End

The end of the tax year is fast
approaching and it is now the time to make sure you have used all
your tax allowances before it is too late. The personal allowance,
capital gains tax allowance and annual investment allowances are all
either use them or lose them allowances, you cannot carry them
forward to the next tax year.

You must ensure you have brought your
bookkeeping records up to date to accurately assess the businesses
financial position before making these decisions regarding future
requirements. If you do not have up to date bookkeeping records you
may not know the businesses profit and this will have a bearing on
the decisions you are going to make.

If your profit is above the personal
allowance level you should be looking for ways to bring this profit
level down, and some such options are assessing that the full amount
of mileage allowance has been claimed for business travel in your
privately owned vehicle if you use your own vehicle for business
purposes, ensure you have put all your expense claims through the
business for privately incurred expenses that are an expense of the

When you consider capital gains tax you
need to evaluate if there are any sales of capital gains assets that
are chargeable to capital gains tax that you intend to make, if the
chargeable gains from these are going to be a higher profit than the
capital gains allowance then can you split the sale of the assets so
that you can sell some of the assets in this tax year and some in the
next tax year this will allow you to take advantage of both years

Annual Investment Allowance is designed
to allow qualifying businesses a deduction of one hundred percent of
the purchase of qualifying assets, this means if you make such a
purchase before the end of the tax year you will be able to claim the
full cost as a tax allowable expense this tax year, on the other hand
if you have used all your annual investment allowance in this tax
year then you may wish to delay the proposed purchase into the next
tax year.

Good bookkeeping records and cash-flow
planning are vital if you are considering your tax planning in this
manner. It is surprising how many small business owners do not keep
the bookkeeping up to date and free bookkeeping training is available
for those that cannot compile their own bookkeeping records.

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