Preparing your business for Tax Year End

Preparing your business for Tax Year End

The Tax Year End is a statutory requirement by Her Majesty’s Revenue and Customs (HMRC) to show how well your organisation has performed over the last year. Falling on 5th April every year (the reason behind the dating is quite interesting), businesses need to ensure they adhere to this requirement by that date. Below you will see a list of preparations you can take to make sure you’re ready:

Check your data

Your employee data must be up-to-date – HMRC will be looking out for payroll and expenses, so make sure it’s all clear and consistent. You will have full liability for any incorrect tax or national insurance deductions, so all expense forms should be fully up-to-date.

Check with your accountant

Make sure your financial records are up-to-date and check with your accountant about any ways in which you could be saving tax. A higher-rate taxpayer could claim tax relief by making donations to charity or by putting money in a pension.

Your accountant may also help you determine the ideal dividend amount for you to withdraw from your business. Your strategy may be to withdraw all the dividends by the 5th April or leave a particular amount in your account until it is needed.

P60s

Any employee working for your business up-to-the 5th April 2019 will need a P60 statement which summarises their pay and deductions for the Tax Year. The deadline for sending your employees the P60 is 31st May 2019.

Make sure you’ve processed any leavers

If you’ve had any leavers over the last Tax Year, then you will need to process them as leavers. Full information on how to process an employee as a leaver can be found on the Gov.uk website.

Final FPS and EPS

You will now need to submit your Final Payment Submission (FPS) to HMRC. The FPS tells HMRC about the last employee payment for the year. If no employees were paid during the reporting period, or if you want to claim any payments or reclaim deductions, then you will need to submit an Employer Payment Summary (EPS).

Process your Year End

Once the above steps have been completed, you can now start to process your Year End. Your payroll software’s date should be set to 5th April and make your final submission for 2018/19. Now you can start processing your employee’s P60s.

We’re here to help

If you need any help with getting ready for Tax Year End, we can assist you. Give us a call today on 0333 011 2208 or email enquiries@konnectfinancial.co.uk.

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