6 Last-Minute Tax Checks Ahead of April 5th

For business owners, both global and small alike, the run-up to the financial year-end on April 5 can be a difficult time – but it doesn’t need to be. 

Performing a few small checks on the crucial areas of tax filings can help the process feel smoother, simpler, and a whole lot less stressful. 

So, we’ve put together a checklist of six essential last-minute checks to ensure your business is ready to kick off when the new tax season begins the next day, on April 6. 

Ready to get started? Keep reading below. 

Check 1: Your Accounts

First things first, you’ll want to check your bank statements are in line with your accounting records. 

Any discrepancies between them can delay your tax filings, but they may also lead to penalties from HMRC. It may feel tedious, but aligning your bank statements and paper records is one of the most crucial steps in preparing for the tax season.

Have your transactions and paper records in front of you before going through each one to ensure they match. If you notice something is off, then make sure to fix it before the tax year ends. 

Check 2: Your Outstanding Invoices

Overdue payments from clients can be a nuisance at any time of the year, but they are especially so as you prepare for the tax year-end.

Spend some time double-checking your invoices for any that are outstanding or unpaid, making a note of who they are. Once you know what’s left over, you can start sending out friendly reminders, following up with phone calls, or dropping them a message. 

EXPERT TIP: Offering incentives to clients for early payment can help reduce the amount of outstanding invoices you have to prepare in the tax season. 

Check 3: Your Expense Records

As you go through the year, the business expenses can start to rack up. So, the third check to prepare your taxes for the year-end is to sort out your expense records. 

You want to be sure everything you’re claiming is a government-approved business expense. Items like stationery, printers, and computer software are legitimate expenses, as are travel expenses and advertising. 

If you work from home, you can potentially claim back a portion of your utility bills, such as internet usage, electricity, or even a proportion of your rent. 

EXPERT TIP: For the self-employed, there are additional items eligible for you to claim back on tax. Discover more about self-employed tax deductions on our blog. 

Check 4: Your Pension Pot

You’ll likely make monthly contributions to your pension pot throughout the year, but it can actually be beneficial to add some before the end of the tax year. 

Adding to your pension pot before the financial year-end allows you to maximise your tax relief fund before it resets on April 5. As the government provides tax relief on pension contributions, you can get your tax rate percentage added on top of any funds you add. For example, a £900 contribution becomes more than £1,000 with government support, based on the basic rate. 

Are you in the higher tax rate bracket? Government contributions could be even higher for you. Always make sure you check your tax bracket for accurate estimations. 

Check 5: Your Capital Allowances

If you’ve made any large purchases for your business this year, then make sure you check these records as you prepare your taxes. 

Significant purchases for your business, such as IT equipment, company cars, or large machinery, may qualify for capital allowances. You can claim back the full expense of the items up to a set limit, which helps to keep your taxable profit low. 

For more information on how this applies to your business purchase, head over to the government page on Annual Investment Allowance (AIA). 

Check 6: Your Payroll 

Lastly, you’ll need to check your payroll is up to date and aligns with paper records to properly prepare your taxes. 

Not only is this essential for your own records, but it also helps to ensure your employees are on the right tax code when the new year starts on April 6. Make sure all PAYE returns are submitted to avoid HMRC issuing you any fines. 

What to Avoid When Preparing Your Taxes for Year-End

Now you know the essential last-minute checks to get yourself in order before the end of the tax year, we thought it’d be helpful to go over a couple of things to avoid during this time. 

1 – Sorting out taxes on your own is a lengthy, time-consuming process – do not leave it until the last minute. Late filing can incur hefty late submission fees from HMRC. 

2 – Failing to register for VAT once you pass £90,000 turnover can, again, lead to costly penalties. Don’t neglect your records, as it is a legal requirement to let HMRC know once you’ve crossed the VAT registration threshold.

3 – Failing to categorise your expenses properly means you may miss out on legitimate expenses, meaning you pay more than necessary. 

Our advice is to start early on preparing your taxes for the year-end, as this is the best way to ensure your records are aligned, up to date, and accurate. 

Haggards Crowther Makes Year-End Tax Preparation Simple

Here at Haggards Crowther, we have decades of experience in helping businesses across the UK manage their taxes. 

Our tax support for businesses includes bespoke tax advice, payroll management, and bookkeeping and compliance to ensure you’re fully covered when April 5 comes around. Get in touch with us today to put together your personalised tax support package with us. 

You can reach us via phone on 020 7384 0920 for the Parsons Green Office or 020 7384 4898 for the Putney team. Alternatively, send us an email to enquiries@haggards.co.uk or fill out the contact form on our website for a callback.