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Companies - getting the timing right

Do’s and don’ts of timing payments and receipts for tax purposes.

By timing payments or receipts carefully around the year end, companies can save money. Numera can advise companies in the London area…

The timing of certain payments and receipts of income is crucial for tax purposes. By moving a date of payment or receipt by just a few days either side of the company’s year end, you can reduce the current year’s tax bill and/or defer payment until the next tax year.

Do

  • Ensure that qualifying charitable donations are paid before the year end
  • Ensure that any provisions made are against specific costs, not a general estimate
  • Ensure that pension contributions are paid before the year end
  • Consider whether any additional remuneration/bonuses should be voted to directors in respect of the current accounting period (these can be paid up to nine months after the year end although the PAYE and National Insurance may need to be paid sooner than that)
  • Ensure that you value stock and work in progress taking into account any reduction arising as a result of obsolescence
  • Consider the effect of bringing forward any capital expenditure into the current accounting period to fully utilise reliefs available each year

Don't

  • Forget to consider the timing of disposal of assets such as property or shares that will give rise to a large chargeable gain to ensure that in year reliefs are utilised
  • Forget that timing of expenditure will also have an effect on your accounts
  • Forget to consider the timing of selling assets on which capital allowances have been claimed.

If you are a company in the London area and would like help with timing payments and receipts to reduce the tax bill and save money, contact Numera.

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Company details

020 7794 5757

Numera, 4th Floor Charles House, 108-110 Finchley Road, London NW3 5JJ

Numera is a trading name of Numera Partners LLP | Company Registration No. OC365787 | Place of Registration: England & Wales | Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales.

About us

Numera is a newly established forward-thinking firm of chartered accountants, with over 25 years in experience of audit, accountancy, taxation and business advisory services.

We work with clients in a large variety of industries and sectors; from sole traders to multi-million pound turnover organisations. We aim to create and maintain a close relationship with our clients. By being so involved, we are able to identify opportunities for our clients as well as possible risks that our clients may be faced with.

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