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Tax Planning: Your Year-End Checklist for 2021

The End of Year nightmare can be overwhelming. Dealing with frightful mountains of documents, companies can get bogged down in last-minute sorting. But with our guidance and planning - it doesn’t have to be this way! Read our step-by-step guide for your Year-End Tax Planning Checklist 2021, and you’ll see that things have never been simpler!

Our easy-to-use guide contains all the information you need to keep your company ahead of schedule and avoid those confusing and costly mistakes that can harm your business, including:

  • Key dates for HMRC Payroll and Tax Returns
  • Essential preparations that your company needs to know
  • Planning ahead - how to improve your business in the future!
When does the tax year end 2021? When does my HMRC Payroll Year End?
  • Like every year, the tax year finishes on the 5th April. This means your HMRC Payroll must be completed and submitted either before or on your employees’ payday.
  • You must also prepare for the 6th April. The start of a fresh year, where your company must update all payroll records and software. Take a look at our easy-to-use payroll software!
  • P60’s must be sent to all employees by the 31st May. They can be physical copies, but in our age of technology, online P60’s have proven to be both cheaper and much less time-consuming!
  • Last, but certainly not least, you have until the 6th July to review, and submit, any and all Employee expenses and benefits.
Ok, I’ve sorted my Employees, what’s next?

Your first and most important port of call will be your accounting year-end adjustments. Filled with complicated jargon, we understand that these situations are daunting to complete yourself. Our planner means you don’t have to deal with accrued and deferred expenses and income, or depreciation value. We complete these complications, so you don’t have to! Just remember these two important points:

    • Expenses. Have you left any unclaimed? Track down any purchases you have made for the sake of the company, and keep those receipts! More expenses claimed means less profit. Less profit means lower corporation tax. Get those expenses claimed before it’s too late!
    • Overdue invoices. Are you still owed money from clients? If you’ve provided a valuable service and are still waiting on payment - become a debt collector! You’re owed for your company’s hard work, so chase down those final invoices!

One more thing to bear in mind about the taxman - he needs proof! Year-end audits require your company to be completely transparent. That pile of receipts for expenses is more than just paper - it’s your defence in case problems appear! You should also ensure all statements of account are gathered and organised, and keep them safe for six years afterward. An oversight here can cost your company an arm and a leg - so be careful! Our Tax accountants are here to organise and make everything stress free.

Tax Return and Annual Accounts

Your Company Tax Return, CT600, is the measure of your corporation tax. Your company’s income (minus those important expenses!) will be judged, so it’s important to follow the steps above!

Your annual accounts will be sent to HMRC. This requires an Income Statement, how much profit or loss your company made, a Statement of Financial Position, including any and all assets, capital, and reserves, and finally Footnotes. This last document covers transactions between directors and the company, loans, guarantees, etc. Any CFO will find our accounting software a treat to use!

Companies House
  • As a director of a Limited Company, you must confirm your company’s information with Companies House every single year. This Confirmation Statement must be submitted no later than a year and two weeks after your previous one.

If you’re reporting as a micro-entity, you must also submit the Statement of Financial Position, and Footnotes from your annual accounts to Companies House. Thankfully you’ve already listened to us and prepared these earlier!

Forward Planning

Do you want your business to survive, or to thrive!? Once you’ve completed all the difficult essentials, you need to consider other options.

  • VAT. Are you and your company VAT registered yet? If not, you should consider it immediately. VAT returns are a fantastic way to reduce your company’s annual outflow!
  • Reduce your Tax bill with R&D Tax credits with our expert team.
  • Look back - Where are your cash asset inflow and outflow? Where have you improved upon since previous years? Is there an excessive outflow in one area?
  • Look at your suppliers. Competitive suppliers can always be found - is there a cheaper one for you? A new supplier for a new year can vastly improve the quality and costs of your business!
Your Year-End Submission Deadline

While self-employed people have the advantage of completing tax returns by January 31st the following year, limited companies have it slightly more difficult. You don’t have to ask “when does year-end 2021?” - Your year-end will be the last day of the month from the day your company was first incorporated with Companies House.

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Here at Accountancy Cloud, we're dedicated to helping businesses turn financial chaos into clarity. Get in touch with our expert team today, and enjoy managing your business with accounting that's easier than ever before!