As the 5 April tax year-end approaches, now is the perfect time to review your financial and business position. Here’s a quick checklist to help you stay on top of things:
1️⃣ Expenditure and Withdrawals
🔹 Do you want or need to draw funds from your business?
🔹 Do you have any remaining basic or higher-rate tax band to utilise?
2️⃣ Overdrawn Director’s Current Account
🔹 If you’ve already withdrawn cash, is it sitting as a loan to your company?
🔹 Could this be cleared via dividends, and how would that impact your tax bands?
3️⃣ Company Profits
🔹 Are your profits between £50k–£250k, above, or below this threshold?
🔹 Remember, your corporation tax rate depends on this figure.
4️⃣ Pension Contributions
🔹 Have you considered making a pension contribution to reduce your personal tax liability?
5️⃣ ISA and IHT Gift Allowances
🔹 Could drawing funds from your business help you maximise your ISA allowance?
🔹 Or your Inheritance Tax (IHT) gift allowance?
6️⃣ Business Health and Cash Flow
🔹 Use this review as an opportunity to assess the overall health and cash flow of your business
🔹 If you cannot withdraw the funds you want to do some of the things above, why not and what to do about it? —think of it as a financial MOT.
Have you given yourself a tax health-check yet?
Don’t miss the chance to optimise your position before the tax year ends!