It may be the start of the tax year, but planning spending now throughout the year will help you achieve tax efficiency and support budgets and cashflows.
Here are some things to consider in your planning...
If you are a director of a Limited Company, consider paying an additional pension contribution before your company year end.
If you are a Sole Trader and may be moving into the 40% tax bracket, then planning additional contributions throughout the year could keep you in the 20% tax band.
You should consider planning your expenditure towards your year end, which will reduce your profits and therefore tax liability. By arranging trades now and agreeing pricing, you will ensure that work is done in time for those tax savings.
If you normally pay a staff bonus, look to do this before 1 April 2026, as this is when the national minimum wage increases as well as company NI increases.
Buy any large pieces of plant and machinery before your year end and sell any machinery in the new tax year to maximise the tax efficiency. If you have a legal agreement to buy the equipment before the year end and it is delivered and paid for within three months after your year end, the expenditure is allowable that year.
Getting finance in place can take time – plan now for future efficiency.
Planning and investing in marketing before your year end and using the material for the remainder of the following year allows time to implement and spreads cost.
We're on hand to help you achieve tax efficiency!
If you would like to ask us any questions please contact either Leanne Pearson or Kris Clayton on 01663 743800 or email leanne@claytoncca.co.uk or kris@claytoncca.co.uk
Changing the traditional view of accountancy...
Our scalable solutions adapt to suit your business's individual needs, supported by easy-to-use accounting software and our years of business experience. Talk to us about how we can advise and guide you to achieve your business and financial goals!
