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Company year end: ten things to do before the books close
The weeks before a company’s year end are the last chance to shape this year’s tax. A short list, in the order we work through it with clients.
Year-end planning is not about clever schemes. It is about timing ordinary decisions so they land in the right year, with the right paperwork, and knowing the bill early enough to plan the cash.
- Forecast profit to the year end, including known adjustments.
- Check where that profit sits against the £50,000 and £250,000 limits, shared with any associated companies.
- Review planned equipment purchases: the date of spending decides which year gets relief.
- Pay any employer pension contributions before the year end; accruing them is not enough.
- Agree bonuses now and pay them within nine months of the year end, so they count this year.
- Write off debts you will not recover, with evidence of why.
- Count stock and value it properly; write down what will not sell at cost.
- Clear or plan for any overdrawn director’s loan account.
- Decide on dividends, with reserves checked and paperwork in place.
- Gather R&D records if you are likely to claim.
After the year end
- 9 monthsAccounts due at Companies House for a private company
- 9 months + 1 dayCorporation tax due for most companies
- 12 monthsCompany tax return (CT600) due
Large companies pay corporation tax in quarterly instalments instead. Ask us if your profits are approaching £1.5 million.
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This insight is general information, not advice for your circumstances. Talk to us before acting on it.