If your company has a 31 March yearend, you only have a few weeks to consider available planning options that may save you tax for the current financial year 2015-16. There are also a number of practical matters that should be considered. They include:
Directors
- Are there any monies owed to the company by directors?
- If the amounts owed exceed £10,000 has interest been charged on any balances owing? If not, beneficial interest will need to be declared on form P11D for 2015-16.
Dividends
- Is the correct paperwork in place: dividend vouchers and board minutes?
- Have dividends been paid out of distributable reserves?
- Have all dividends voted been paid or credited to a loan account?
Salaries
- Were any outstanding salaries or bonuses claimed in the 2014-15 accounts paid within 9 months of the year end? If not, the deduction for corporation tax will be disallowed.
- Have bonuses been considered for 2015-16? Would it be prudent to defer voting bonuses to assist with personal tax planning issues? For example, reducing taxable income for 2015-16 may save tax allowances if the intended bonus increased total income above the critical £100,000 ceiling.
Company car users
- Have steps been taken to recover the full cost of any private fuel paid to company car users during 2015-16? This needs to be completed by 5 April 2016 to avoid possibly significant car fuel benefit charges for the employee and NIC Class 1a contributions for the company.
Pension contributions
- Make sure that any company contributions for 2015-16 clear the company bank account before the yearend.
Deferring significant costs or fixed asset investment
- Consider deferring or bringing forward, significant revenue costs (for example allowable repairs to plant or other equipment).
- Consider deferring or bringing forward, significant capital costs (for example equipment or commercial vehicles).
Losses
- Consider tax strategies to take advantage of past or current year losses.
This list is by no means conclusive. Please contact us if you would like to set-up a planning meeting. The sooner the better – the clock is ticking…