Baucher Consulting Limited, tax specialists, have recently sent out some very good end of year tax tips that we believe you should take a look at before 31st March:-
- If you are a residential property investor then be aware that under proposed legislation from 1stApril you will no longer be able to offset losses against other income. You should therefore look to bring forward any genuine repairs and maintenance or purchase of fixed assets such as heaters and heat pumps in order to maximise your deductions for the current year.
- Review your debtors and ensure any bad debts are written off by 31st March to ensure you can get a bad debt deduction this year.
- Any elections to join the look-through company regime must be filed by 31 March in order for the election to take effect from 1 April. Miss this deadline and you’ll have to wait another year.
- Carry out a thorough stock check and either dispose of obsolete and slow-moving stock or value it at market selling value
- Similarly, if you are a professional services firm then either bill any work-in-progress or write off anything which will not be recoverable.
- Ensure all shareholder current accounts are in credit or consider either charging interest or paying a dividend to clear any overdrawn balances.
- Finally, remember to file your tax return by 31st March so that you don’t give Inland Revenue the opportunity of extending the “time bar” beyond the usual time limit of four years after the end of the tax year in which the tax return was filed.
If you have any questions regarding the above information, please contact us on 09 636 3332.