On the horizon
With tax increases looming, it is ever more important you look at how you are managing your personal finances and practice, and consider how you might reduce your taxes or improve your financial and business strategies. Tax planning involves taking advantage of allowances and exemptions including deductions for pension contributions and capital allowances. However, with the change in Government, there is also change to the amount we are taxed.
In regards to your practice, it is important to help your profits by selecting an accounting date. This decision will affect the delay between the profits earned and the tax paid on those profits.
However, if your practice has:
In addition, it is worth noting that while an accounting date made early in the tax year can benefit a growing practice, the current economic conditions mean many practices might benefit from a change in accounting date to ensure lower profits come into charge earlier, reducing tax payments. This may not be so attractive when profits rise again, however.