New Tax New You

The 20/21 Tax year probably did not go to plan for many of you reading this article.

With the 21/22 tax year just days away, we thought it may be a good time to start preparing for the new tax year.

Getting your business in order for the new tax year

After the rollercoaster the last 12 months has brought us all, it’s now time to reflect on the last year and try and focus on the things we can control going into the new tax year.

Here are some suggestions of places to start, we would be happy to discuss with you if we can assist you and your business during the new tax year.

Review your business plan

Whether you are a new business or have a long-standing business it’s always useful to go back to your business plan and review your progress. Identify areas of opportunity and potentially identify underperforming areas that you need to allocate some time to improve and develop. Covid restrictions will no doubt have changed the way in which your business has performed over the last 12 months, and with restrictions of some form looking to be in place for the foreseeable future, consider whether your business is equipped to deal with what’s ahead.

Claim all your expenses

Having a good understanding of what you can and can’t claim as expenses, whether you’re working as a limited company or as a sole trader helps keep your business running in the most tax efficient way. Claiming every single expense you’re entitled to, whether it’s office pens or a new computer, will leave you better off than just paying for them out of your own pocket.

Be more organised

Most clients say getting their paperwork/finances together is always on their minds, but it is usually pushed to the bottom of their to do lists. It can be a painful, drawn-out process going through a year’s worth of accounts, bookkeeping and receipts. However, with a little bit of organisation, thinking about the forthcoming tax year may not seem as daunting. Having a good pro-cess in place can help make this much easier, there are a number of good software’s on the market now which can help this.

Reconsider your software

It may be a good time to review or consider the accountancy or book keeping software or methods you are currently adopting. At Allchurch & Co we encourage using Cloud Based Accounting Packages to manage your business and improve business planning.

This comes with the added benefit of ensuring you are compliant with Making Tax Digital but also you will benefit from;

  • Ease of access – Cloud based packages allow ease of access as you can log on remotely via smart phones while you are out and about and not only when you are in the office.
  • Low cost – It is a relatively low cost accounting solution with no large up front investment which is paid via a monthly fee.
  • Real time financial information – Keeping your cloud based accounting software up to date means you will have much better information for decision making and cash management at a click of a button, you will know how much your debtors owe you, or how much you owe to your creditors.
  • Back up and data security – Cloud based packages provide you with peace of mind that your data is safe and secure.

Covid Specific Points

Ensure you have claimed the relevant grants / support and funding which is available to you. Your local authority website is usually a good place to start checking.

If you are employed and have had to work from home due to Covid-19, you may be able to claim tax relief on additional household costs.

You can either claim tax relief on:

  • £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) – you will not need to keep evidence of your extra costs
  • the exact amount of extra costs you’ve incurred above the weekly amount – you’ll need evidence such as receipts, bills or contracts

You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).

Allchurch & Co. – Chartered Accountants / www.allchurchco.com / 07825 232218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This comes with the added benefit of ensuring you are compliant with Making Tax Digital but also you will benefit from;

 

Ease of access – Cloud based packages allow ease of access as you can log on remotely via smart phones while you are out and about and not only when you are in the office.

Low cost – It is a relatively low cost accounting solution with no large up front investment which is paid via a monthly fee.

Real time financial information – Keeping your cloud based accounting software up to date means you will have much better information for decision making and cash management at a click of a button, you will know how much your debtors owe you, or how much you owe to your creditors.

Back up and data security – Cloud based packages provide you with peace of mind that your data is safe and secure.

 

Covid Specific Points

Ensure you have claimed the relevant grants / support and funding which is available to you. Your local authority website is usually a good place to start checking.

If you are employed and have had to work from home due to Covid-19, you may be able to claim tax relief on additional household costs.

You can either claim tax relief on:

£6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) – you will not need to keep evidence of your extra costs

the exact amount of extra costs you’ve incurred above the weekly amount – you’ll need evidence such as receipts, bills or contracts

 

You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).

 

 

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