Ensure you have the right software to file company tax returns. HMRC no longer provides an online filing system for corporation tax. If you operate through a limited company, you now have to use third-party software to file your accounts and tax computations, with very limited exceptions. There is a wide range of available software products and, if you have not already done so, you should choose one suitable for the size of your company and complexity of its financial affairs in good time for your tax filing deadline. Although the Companies House accounts filing service will continue, you will not be able to submit accounts to both departments jointly as now, and it too will close eventually. You should therefore look for suitable software that can file your company accounts to HMRC and Companies House at the same time. TIP Keep under review how you withdraw profits from your limited company. Even after the two percentage point increase in the basic and higher tax rates on dividends, extracting profits by way of dividends may still be more tax-efficient, but each decision has to be made on a case-by-case basis taking into account the tax rates on the company and the individual. Remember that dividend income cannot support pension contributions.
CHECKLIST
Ensure your business structure is still tax advantageous Review turnover regularly to avoid missing the requirement to register for VAT Ensure that you are calculating trading profit in the most suitable way for your business Review how you calculate the cost of business journeys in your own car Check whether or when you need to join MTD for income tax
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