It’s that special time of year again and with festivities well underway, we thought it would be great to for you to take some time out and wind down with a hot chocolate while we share our top 10 Christmas time accounting tips, enjoy!
1. Chase Late Payments
Use the festive period to wish your clients Merry Christmas and give your debtors a festive nudge. Make contact a in advance of the due date to ensure they have received your invoice and are ready to process the payment. If you find you’re too busy getting projects wrapped up before the year end, consider outsourcing this job. Ensure you’re managing your own creditors, you don’t want to end up with late payment fees or damage business relationships.
2. Get Organised.
Whilst things slow down for the Christmas break, now is the perfect time to make sure your business is in the best shape it can be for the New Year. So, whilst there’re less distractions, why not tackle those jobs that always get passed by, for instance sorting out receipts. Taking some time to do those jobs can make a big difference when filing your tax return and help you avoid the risk of late penalties further down the line.
3. Review the Way You Pay VAT
Is your VAT turnover £150,000 or less (excluding VAT)? If so, take the time to look at the VAT Flat Rate Scheme. It could help you save a good amount of money as it means you just pay a flat rate percentage. Speak to Blue Rocket Accounting if you want advice on whether the Flat Rate Scheme is right for you.
4. Reward Employees with a Christmas Perk
Do you want to give your staff a Christmas party? Great idea! Not only does it help boost moral but you can get a tax deduction for an annual event for up to £ per head. Find out more about Christmas expenses in our blog article 'Our Top Tips for Christmas Entertaining Expenses'.
And although cash gifts and vouchers are not tax deductible, HMRC has conceded seasonal gifts such as a turkey, a box of chocolates or a bottle of wine to be exempt so long as they meet the criteria for trivial benefits.
5. Make the Most of Your Accountant
At Blue Rocket Accounting, our clients are encouraged to make the most of our business expertise and contact us directly by WhatsApp, email, mobile and more to ask any question at any given time. We are aware that though our team is fully approachable to assist with tax savings and growth plans, some accountants out there are not. If your current accountant is about as approachable as Ebenezer Scrooge, maybe it’s time for a change. Get in touch with Blue Rocket Accounting and discover the added benefits of having a dedicated, experienced and professional team looking after you in the year ahead. Make sure you are getting the advice you need to help grow your business.
6. Review How You Get Paid
By paying yourself varying dividends and salary you will be able to pay less to HMRC. With the help of Blue Rocket’s top accountants, you will have a team dedicated to maximising your income and saving you tax. Now that’s the Christmas gift that keeps giving. Find out more about dividends versus salary in our blog article 'Dividends vs Salary: Which is the better choice for company directors?'.
7. The Gift of Giving…To Your Clients
If you intend on giving gifts to your clients, it’s a good idea to use it as an advertising opportunity. This way, along with a few other requirements such as a cost limit etc. they will qualify for a tax deduction! Remember, the gift must bear a conspicuous advert, be less than £50 and not be food, drink, tobacco or exchangeable vouchers. Got a question? Get in touch so we can share the answer.
8. Claim Household Expenses
If you work from home or are a small business operating from your home, you can claim some of your household expenses through your business. No matter the size of your business, Blue Rocket Accounting can help make sure you are claiming what you are entitled to. The Christmas break is the perfect time to review expenses, overheads and income to make sure you’re on track.
9. Make Tax Digital
Use this period to make strides towards preparing for the Making Tax Digital for Income Tax deadline. There are upcoming legal requirements, duties and obligations that will be imposed from April 2024. Make it your mission to find out more about what you need to do to get ready. This is something we can help with, speak to the team at Blue Rocket Accounting to find out more.
10. Get Some Rest and Relaxation
Too many business owners don’t switch off over the festive season. Take time to rest and relax and enjoy the season, ensuring you make the most of time with family and friends. It will mean you can hit the ground running in the New Year with your batteries fully recharged.
For more information and helpful tips for what you can and can’t do this Christmas, please contact us on 01322 555442 or email email@example.com.
And have a very Merry Christmas.