What every Accountant should discuss at your company’s year-end

Your company’s year-end isn’t just a routine compliance task—it’s a crucial opportunity to optimise your finances, reduce tax liabilities, and plan for the future. As your company’s financial year comes to a close, it’s the perfect time to sit down with your accountant and ensure your business is in the best possible position for the next year. Here are the key questions every UK business owner should be asking:

1. How Can I Reduce My Corporation Tax Bill?

• Are there any expenses I haven’t claimed that I should
• Can I take advantage of capital allowances on equipment, vehicles, or office refurbishments
• Should I make pension contributions before the year-end for tax efficiency
• Are there any R&D tax reliefs or other incentives available to my business

2. Can I Extract Profits More Tax-Efficiently?

• Should I take dividends or a salary, and what is the best balance between the two
• Are there any benefits-in-kind (such as electric company cars) that could be more tax-efficient
• Would a director’s pension contribution be a good option for reducing tax

3. Have I Maximised My Allowances and Reliefs?

• Am I using my full tax-free dividend allowance
• Are there any business reliefs I qualify for, such as Business Asset Disposal Relief (BADR)
• Can I carry forward any tax losses to offset future profits

4. Are There Any Changes in UK Tax Law That Will Affect My Business?

• How will the latest Budget impact my tax liabilities
• Have National Insurance contribution rates changed
• Are there any upcoming VAT or payroll regulation changes I need to prepare for

5. Is My Business Cash Flow Healthy?

• Are my outstanding invoices under control, and should I be improving debtor management
• Do I need to build up more cash reserves for upcoming tax payments
• Are there ways to optimise my cash flow, such as adjusting supplier payment terms

6. Am I Paying the Right VAT?

• Am I on the best VAT scheme (Standard, Flat Rate, or Cash Accounting)
• Have I properly reclaimed VAT on all eligible expenses
• Should I be making any VAT adjustments before the year-end

7. Should I Be Restructuring My Business?

• Would switching from a sole trader/partnership to a limited company be beneficial
• Should I consider forming a holding company or group structure for tax efficiency
• Are there any changes in ownership or shareholding that should be considered

8. Am I Prepared for the Next Financial Year?

• What are my financial targets and forecasts for the next year
• Should I be adjusting my pricing or cost structure
• Are there any risks I need to mitigate, such as upcoming tax increases or market changes

Final Thoughts

Your company’s year-end is more than just a compliance task—it’s a chance to fine-tune your financial strategy. Asking the right questions now can help you reduce tax liabilities, improve cash flow, and set up your business for future success.

Need tailored advice? Speak to ChadSan to ensure you’re making the most of every opportunity.