Companies - getting the timing right

Do’s and don’ts of timing payments and receipts for tax purposes.

By timing payments or receipts carefully around the year end, companies can save money. McIntosh Accountants Limited can advise companies in the Bucknall area…

The timing of certain payments and receipts of income is crucial for tax purposes. By moving a date of payment or receipt by just a few days either side of the company’s year end, you can reduce the current year’s tax bill and/or defer payment until the next tax year.

Do

  • Ensure that qualifying charitable donations are paid before the year end
  • Ensure that any provisions made are against specific costs, not a general estimate
  • Ensure that pension contributions are paid before the year end
  • Consider whether any additional remuneration/bonuses should be voted to directors in respect of the current accounting period (these can be paid up to nine months after the year end although the PAYE and National Insurance may need to be paid sooner than that)
  • Ensure that you value stock and work in progress taking into account any reduction arising as a result of obsolescence
  • Consider the effect of bringing forward any capital expenditure into the current accounting period to fully utilise reliefs available each year

Don't

  • Forget to consider the timing of disposal of assets such as property or shares that will give rise to a large chargeable gain to ensure that in year reliefs are utilised
  • Forget that timing of expenditure will also have an effect on your accounts
  • Forget to consider the timing of selling assets on which capital allowances have been claimed.

If you are a company in the Bucknall area and would like help with timing payments and receipts to reduce the tax bill and save money, contact McIntosh Accountants Limited.

Register for newsletter

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Learn more
BAS logo Ciot logo ICAEW logo Sage logo

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help | accSEND | © 2024 McIntosh Accountants Limited. All rights reserved.

McIntosh is a trading name of McIntosh Accountants Limited.

Registered Address: McIntosh Chartered Accountants incorporating Facts and Figures, Windsor Lodge, 263A Werrington Road, Bucknall, Stoke-on-Trent, Staffordshire ST2 9AS
Registered in England | Company number : 04639062

We use cookies on this website, you can find more information about cookies here.