What steps do you need to take?
We’re fast approaching the end of the tax year, and now is usually a good time to get to grips with any tax changes. Here are a few things that will maximise your tax efficiency and get your business prepared for the new tax year.
Below are a few steps we have put together that will help you prepare for the upcoming tax year:
- Ensure your Employer Payment Summary has been submitted to HMRC by the 5th April 2021.
- All employees must receive their P60s by the 31st May – this can be sent electronically or given as a paper copy.
- P11ds need to be filed with HMRC with any benefits that are provide to employees outside of the payroll system. The deadline for this is 6th July 2021.
- Review employee’s pay and ensure their pay meets the new national minimum wage which will be increasing from the 6th April – As documented below.
- Make sure tax codes have been update for each employee – This is likely to have effected everyone due to the increase in tax re-allowance.
Please note: If you are a client of ours and our payroll services are included in your accountancy package, the steps above will be carried out by our team on your behalf.
National (living) Minimum Wage
Millions of workers across the country will receive arise in their pay, following an increase in the National Minimum Wage and National Living Wage from 6 April 2021. In full, the increases are:
- National Living Wage (23+) to increase 2.2%,from £8.72 to £8.91
- National Minimum Wage (21-22) to increase 2%,from £8.20 to £8.36
- National Minimum Wage (18-20) to increase 1.7%from £6.45 to £6.56
- National Minimum Wage (under 18) to increase1.5% from £4.55 to £4.62
- Apprenticeship Wage to increase 3.6% from£4.15 to £4.30
Self-Assessment Tax Return / Dividends
In addition, now is a good time to consider the following:
- Begin compiling all data relating to your personal income, ready for preparing your Self-Assessment Tax return.
- Make sure you have taken dividends out from the company by the 5th April 2021 so that this can also be included in your Self-Assessment Tax return. This will help maximise your tax-efficiency by fully utilising your personal tax-free allowances and HMRC tax thresholds when combined with any director salary you take.
If you would like some help with remuneration planning please contact us to arrange a meeting where we can look at the best structure for extracting your profit in an effective manner.
023 8000 1313