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0800 086 9404When Does the New Tax Year Start?
Tips to Ensure You're Prepared
Summary
At the start of a new tax year, small business owners have a lot to consider. It's important to be aware of new tax laws, regulations, and anything else that could compromise the strength of the business' finances.
When Does the New Tax Year Start?
The new tax year started last week, on 6th April 2023, and runs to 5th April 2024.
Tips to Ensure You're Prepared
1. Understand New Tax Regulations
Every year, new tax laws and regulations are put into place that business owners need to be aware of. From changes to the deductibility of expenses to alterations to the self-employment tax rate, it's important to stay up to date on any new regulations that could affect your business.
Keep an eye on the news or gov.uk for any important regulation updates that could affect the business.
This year, corporation tax rose from 19% to 25% for businesses that make profits of over £250k. If this rise impacts your business, you could look into getting a tax loan to cover this. You can read more about tax finance here, and enquire. Financing your tax bill is an easy way to split up the bill into affordable monthly payments, and we pay it directly to HMRC, so you don't have to stress.
2. Track Business Income and Expenses
Business owners should keep track of their income and expenses throughout the year to make more informed decisions and ensure that they comply with the law.
3. Make Estimated Tax Payments
Taxes, such as income and self-employment taxes, are often due quarterly instead of annually. It's important to make the necessary estimated payments on time to avoid penalties and to make sure that your finances are in order.
Put the necessary dates into your calendar so you know when the money will be coming out.
4. Maximise Tax Deductions
There are many deductions that business owners can take advantage of in order to reduce their taxes. This includes expenses such as advertising, travel, home office expenses, and more. Make sure to research the deductions available to you and take full advantage of them.
5. Set Aside Money For Taxes
It can be really helpful to set aside money each month to cover your tax liabilities and ensure your taxes can be paid on time.
This will help to avoid surprises when tax time comes around.
Making a monthly budget that allows you to save some money each month is vital in ensuring you can make necessary payments and protect your working capital.
6. Review Your Business Structure
As a small business owner, you should review your business structure to ensure that it aligns with your goals and strategies. This includes taking into consideration the types of business entities available and understanding the tax and liability implications of each type.
7. Make Sure Your Records Are Up To Date
Keeping accurate and up-to-date records of all business transactions is essential for tax filing. This includes income earned, expenses incurred, and any other relevant information. Keeping organised records will make tax filing easier and help to ensure that you're reporting everything accurately.
Maintaining up-to-date records makes everything easier in the long run.
Summary
From understanding new tax regulations to setting aside money for taxes, it's important to take the necessary steps to ensure that your business is financially sound. By following the tips above, small business owners can prepare for the new tax year and ensure their business is in the best shape possible.
If you need some extra funding to prepare for the changes the new tax year will bring, contact us today. You could get a business loan to boost your working capital and ensure you're prepared throughout the year; or alternatively, finance your tax bill to split it into monthly payments.
