Are You Ready For the End of the Tax Year?

1st Contact recognises the importance of small business to our economy. All too often, however, the news headlines fail to focus the spotlight on the issues and stories which affect the owners of smaller companies. Here at 1st Contact we spend every day dealing with tax and all the complications that may surround it. With the end of the financial year fast approaching, we recognise that it can be a stressful time, especially if you are running a business and have lots of other balls to juggle.

The current tax year ends on 5 April 2009. There are a number of things that business owners need to make sure are done.

Employers need to complete their Employer Annual Return. If your company has over 50 employees then this must be done online. If you employ less than 50 people you don’t have to do it online, but will receive a £75 tax free payment if you do. As from next year (the 2009/10 tax year) all companies will need to file online, so take advantage of this bonus while it is still available.

HMRC have put a number of quality checks in place which failure to pass will mean that your return will be rejected. The list is quite extensive, and includes things like missing signatures and using the wrong font size, so it is essential to ensure that all requirements are adhered to rigorously.

Don’t forget to ensure that any PAYE and NIC payments are made before the deadline of 19 April – payments must be cleared in the HMRC bank account by 22 April.

Make sure that you are taking full advantage of any available tax allowances for the year. If you have an investment portfolio, ensure that you have used your annual capital gains tax exemption amount before 6 April 2009. You could also make a capital gift of £3000 – this allowance can be carried forward for 1 year, so if you didn’t use it in 2007/2008 you may have £6000 you can use before 6 April.

If you have disposed of a business and any assets associated with it, you may be eligible for Entrepreneurs Relief, which provides for some Capital Gains Tax relief on the proceeds.

As part of the Pre-Budget Report, HMRC have also introduced help for businesses struggling to pay taxes. The Business Payment Support Service has been set up so that a more affordable timetable can be put in place for tax payments. There are a number of other measures designed to help businesses in the Pre-Budget Report, so it pays to make sure you are using all allowances available to you.

There is a lot to think about at year end, however 1st Contact have all the specialist experience necessary to make it as stress free as possible, so get in contact today and together we can find a solution that will work for your business.

1st Contact Tax offers specialist tax services to contracting professionals.
These services include: Contractor Accounting, Contractor Umbrella payroll, Personal Tax for Contractors, Limited Companies for Contractors and Contractor Financial Advice.

For more information visit 1st Contact Tax.