March yearends

February 12, 2016

If your company has a 31 March yearend, you only have a few weeks to consider available planning options that may save you tax for the current financial year 2015-16. There are also a number of practical matters that should be considered. They include:

Directors

Are there any monies owed to the company by directors?
If the amounts owed exceed £10,000 has interest been charged on any balances owing? If not, beneficial interest will need to be declared on form P11D for 2015-16.

Dividends

Is the correct paperwork in place: dividend vouchers and board minutes?
Have dividends been paid out of distributable reserves?
Have all dividends voted been paid or credited to a loan account?

Salaries

Were any outstanding salaries or bonuses claimed in the 2014-15 accounts paid within 9 months of the year end? If not, the deduction for corporation tax will be disallowed.
Have bonuses been considered for 2015-16? Would it be prudent to defer voting bonuses to assist with personal tax planning issues? For example, reducing taxable income for 2015-16 may save tax allowances if the intended bonus increased total income above the critical £100,000 ceiling.

Company car users

Have steps been taken to recover the full cost of any private fuel paid to company car users during 2015-16? This needs to be completed by 5 April 2016 to avoid possibly significant car fuel benefit charges for the employee and NIC Class 1a contributions for the company.

Pension contributions

Make sure that any company contributions for 2015-16 clear the company bank account before the yearend.

Deferring significant costs or fixed asset investment

Consider deferring or bringing forward, significant revenue costs (for example allowable repairs to plant or other equipment).
Consider deferring or bringing forward, significant capital costs (for example equipment or commercial vehicles).

Losses