To help you prepare for the new tax year, we’ve put together four top tips to help you stay on track for financial success.
Meet with your financial advisor
It’s always a good idea to touch base with your financial advisor at the start of a new tax year. Your bookkeeper or accountant will be able to provide you with advice to ensure your new tax year runs smoothly and help you identify any risks or opportunities your business may be faced with this year.
If you haven’t arranged a start of year meeting with your financial advisor, try to schedule something before the end of spring.
Do you need to register for VAT?
On 1st April 2017 the VAT threshold changed from £83,000 to £85,000. The de-registration also changed from £81,000 to £83,000. Does your business make VATable sales of £85,000 or more over the course of any rolling 12-month period? If so, you will have to register for VAT.
Unsure how to go about registering your company for VAT? Take a look at this online VAT Registration guide or get in touch with your accountant.
Get ready for Making Tax Digital
The government’s Making Tax Digital initiative (MTD) intends to digitise tax for UK businesses by 2020. Every business in the UK will be required to report to HMRC digitally via software and apps. Instead of filing tax returns once every year, businesses will be required to file updates at least quarterly.
MTD will not apply to those who cannot use digital tools, individuals in employment or pensioners. From 2018, partnerships and sole traders will be required to report to HMRC using appropriate software. By 2020, HMRC plans to have moved to a fully digital tax system. Self-employed individuals, businesses and landlords will then be required to update HMRC digitally.
If you’re unsure how MTD will affect the way you file, don’t hesitate to get in touch with your financial advisor. They will be able to guide you through the changes and keep you up to date on the changes you need to watch out for.
Start as you mean to go on
It’s important to keep on top of your books all year round. Not only will this help you avoid making costly mistakes on your accounts, you’ll also find it much easier to complete your tax return at the end of the year.
Try to make a habit of setting time aside each day to take care of day-to-day bookkeeping tasks you won’t regret it.
UWM | Your Friendly Team of Supportive Accountants
At UWM, Leeds and UK-based businesses have trusted our financial expertise for more than 30 years. If you have any questions or concerns about your business’s finances, contact our team. We exist to help businesses like yours flourish. Call 0113 231 0202 or send a message via our online contact form and a member of our team will be happy to help you.
