8 steps to being prepared this new financial year
Posted on by Katie Hook
Estimated read time: 4 mins
Avoid any last-minute panics by knowing when the next FY19/20 deadline is.
Whether you were highly organised in your end-of-year preparations or left some things to the last minute…the new tax year is now upon us, which means the next financial deadline is never far away.
Here we outline 8 steps to help you prepare for the first half of this new year…
Step 1: April kicks off with legislation changes launching on the 1st with the new Making Tax Digital scheme for VAT. Ok the 1st April is technically in the last financial year but it’s worth a mention and if you haven’t done already, visit gov.uk to find out if the scheme applies to your business.
Step 2: Also in the last financial year, but very important nonetheless, is the deadline for claiming your Pay As You Earn (PAYE) tax refund or tax overpaid under self-assessment for the 2014/15 tax year. Each business often has its own, different reasons for a tax refund, but be clear on the deadlines for submitting a claim – typically four years from the end of the tax year in which you overpaid.
Step 3: Depending on the type of business you run, bank holidays can either be an opportunity to boost sales or to take a well-earned break. Either way, with Easter and May bank holidays falling within weeks of each other be sure to consider cash flow. With some businesses closing down for the holidays, it’s important to be aware of longer response times as well as delays on invoice processing.
Step 4: May also sees the deadline for issuing copies of P60s to all employees who were on your payroll and working for you on the last day of the tax year. A P60 summarises employees pay and deductions for the year.
Step 5: Followed on from the issuing of P60s, in early July P11D forms need submitting online to HMRC as well as copies issuing to employees, to report any end of year expenses and benefits for both employees and directors.
Step 6: Late July / early August sees the start of the school summer holidays. Again, as with Easter, it’s always a good idea to understand which of your customers and suppliers will be closing for a short break – this way you can plan in advance for any shortfalls of sales expected and predetermine if any invoices will require early processing so not to leave your own business with a restricted cash flow during the summer period.
Step 7: Even if you only work with trusted suppliers, it’s always worth keeping an eye on their credit score using a tool like Experian Business Express. By doing this you’ll be able to see if those you work with suffer any financial difficulties during down periods such as bank holidays and school breaks. Spotting these signs early help you to be proactive in protecting your business from financial risk.
Step 8: If you find yourself requiring finance to support your own business through quieter periods, it’s beneficial to regularly monitor your own business credit score too. Tools such as Experian My Business Profile not only tell you your business credit score, but also ways to improve it – should you need to. Meaning you stand a better chance of accessing finance, at the most competitive rates.
To help you prepare for the FY19/20 tax year, we’ve compiled this handy infographic and remember to check back later in the year for the second part of this blog, detailing the need-to-know dates for the second half of the year.
Discover how Experian Business Assist can help you make better decisions about your business, suppliers and customers, click here to find out more.