Barnard Castle Phone: 01833 630400 Shotley Bridge Phone: 01207 507000

Tax Checklist

2013/14
Tax Busting Checklist

(Updated 27 March 2013)

This is our tax checklist – have a look through it and see what relates to you? There may be matters on the checklist that you can benefit from and had not realised. Not everything will apply to you but it will make you think about all your tax affairs and what could work better for you. The checklist may help you to reduce tax on either a personal or business level. Once you have had a look at the list then it may be worthwhile contacting us here at the office to discuss your own circumstances and requirements.

If you would like to download the PDF version of this checklist to fill in, please click on this link:

Download Tax Checklist

Business Planning

    Has your Accountant mentioned this?
1 If your spouse/civil partner earns less than the single persons allowance of £9,440 per year and helps out in your business you can pay them a wage to reduce your taxable profits. A wage of between £109 and £148 per week will not create a national insurance charge, but it will help your spouse gain credits toward the state pension and other state benefits. Yes No N/A
2 If your children are aged at least 13, earn less than £9,440 and help out in your business you can pay them a wage to reduce your taxable profits. Yes No N/A
3 Have you considered changing your accounting year end to use up any overlap relief created when you started in business? Yes No N/A
4 Do you make sure you always have a pre year-end tax planning meeting with your accountant to make sure all necessary action is taken before your year end? After then it will probably be too late. Yes No N/A
5 If you are a sole trader paying 40% tax and your spouse/ civil partner helps out in the business but is a lower rate taxpayer, have you considered making them a partner in your business to allocate some profits to them at a lower rate of tax? Or if operating as a Limited Company, gifting them some shares to pass dividend income to them? Yes No N/A
6 If you are a sole trader earning less than £5,725 per year there is no need to pay Class 2 national insurance, but you may wish to pay the NI contributions to build up entitlement to the State pension. Yes No N/A
7 Have you considered whether you have the right legal structure for your business? If you are a sole trader or partnership paying higher rate tax you should consider using a Limited Company. Have you also considered if a Limited Liability Partnership structure may be beneficial? Yes No N/A
8 Make sure you buy assets such as equipment, computers, motor vehicles, etc at the right time to maximise the tax relief. If you purchase equipment just before your year end you will bring forward the tax relief for capital allowances, which will normally be due at 100% of the cost for the first year. Yes No N/A
9 If you have personal loans or are considering taking out a personal loan you may be able to reorganise your finances so to make a business loan to your partnership or company. By doing this you will get tax relief on the interest you pay on the loan. Yes No N/A
10 Have you considered spreading the ownership of your business to your spouse and family so that when you finally come to sell it, the amount of Capital Gains Tax payable is minimised? Yes No N/A
11 If your business has made a loss, make sure you have claimed relief for the losses by setting it off against profits made in earlier years, your other income for the same or previous year before carrying the balance forward to set against future profits. Yes No N/A
12 If you have previously subscribed for shares in an unquoted company and you lost money, you could, subject to a few conditions, claim tax relief for the loss by setting it off against profits from your trade. Yes No N/A
13 If you have a boat that you sometimes charter out you can look at claiming capital allowances on the boat. Yes No N/A
14 If you work from home make sure you are claiming for use of home. Look to claim a proportion of items such as mortgage interest as well as gas, electricity, water rates etc. Yes No N/A
15 Just because you don’t have a receipt doesn’t mean you aren’t entitled to claim for an expense as a business deduction, but you do need to have a record of the expense in some form. Yes No N/A
16 Do you check that the amount of expenditure allocated for private use is reviewed each year with your accountant? Yes No N/A
17 To promote your business through having a box at a football club, sponsoring a car rally, etc you need to show a true attempt to benefit the business in order for it to be tax deductible. Yes No N/A
18 The lower your stock value, the lower the profits on which you pay tax. If you believe you cannot sell the stock for at least what you paid for it, or the cost of production, you can reduce the stock value. Yes No N/A
19 Are you aware that Capital Gains Tax on the sale of a trading business held carried on for at least 1 year is taxed at 10% rather than 18% or 28% for the first £10million of qualifying lifetime gains, which means you need to check exactly how long you have been trading before you agree on the sale date? Yes No N/A

 

Newsflash

2014 Teesdale Business Awards

Butler and Gee were once again proud to sponsor and support the Teesdale Business awards held in February 2015. The awards are a fantastic way to recognise the success of local entrepreneurs in various different fields and sectors. The ceremony...

Read More

Our Offices

  •  

    7 Newgate
    Barnard Castle
    County Durham
    DL12 8NQ

  • Shotley Bridge Office

     

    7 Front Street
    Shotley Bridge
    Consett
    County Durham
    DH8 0HH 

Ask a Quick Question