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The window that matters most
The weeks before a limited company's accounting year-end are the last opportunity to make decisions that affect that year's taxable profit — capital purchases, director bonus timing, pension contributions and the like. Once the year-end date passes, the options narrow significantly. This checklist covers the actions that are worth reviewing before the deadline, and the records your accountant will need to prepare your accounts and corporation tax return.
Nothing in this checklist constitutes tax advice. Your accountant or tax adviser should confirm what is appropriate for your specific circumstances.
Records to gather
- All sales invoices and purchase invoices for the year
- Bank statements for all business accounts for the full year
- Business credit card statements
- Petty cash records if applicable
- Payroll records, P60s and P11Ds
- Asset purchase and disposal records
- Loan agreements and statements showing balances and interest paid
- Mileage logs if claiming vehicle expenses
- Any grant income received
Pre-year-end decisions to review with your accountant
Several legitimate tax planning decisions must be made before the year-end date. Director salary and bonus structuring, pension contributions (which must be paid, not just accrued, for immediate relief in most cases), and capital expenditure qualifying for Annual Investment Allowance are the most common. Your accountant can model the after-tax cost of each option based on your projected profit for the year.
If your business is expecting a taxable profit that will attract the higher 25 % corporation tax rate and you have planned capital purchases, bringing them forward to before your year-end may be worth examining.
Deadlines to calendar
For a small company not paying corporation tax in instalments: accounts must be filed at Companies House within nine months of the year-end; the corporation tax return (CT600) must be filed at HMRC within twelve months; corporation tax must be paid within nine months and one day of the year-end.
Missing the corporation tax payment deadline results in interest charges from HMRC at the late payment rate. Late filing of accounts at Companies House triggers an automatic penalty. Calendar all three dates immediately after your year-end.
After the year-end — what your accountant needs promptly
The most common cause of delayed accounts is the director or finance manager taking weeks to provide the underlying records. Aim to deliver everything on the records list within four weeks of the year-end. This leaves adequate time for your accountant to prepare draft accounts, for you to review and approve them, and for filing well before the deadlines.
Frequently asked questions
Can a director's salary be increased retrospectively before the year-end?
Salary must be formally approved by the board and processed through payroll before the year-end date to be deductible in that year. Backdating payroll is not permissible. Your accountant can advise on the appropriate timing and process.
Are pension contributions deductible for corporation tax purposes?
Employer pension contributions are generally deductible for corporation tax when they are paid, subject to HMRC's wholly and exclusively test. Contributions must actually leave the company's bank account before the year-end to be included in that year's accounts. Confirm the treatment with your accountant.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.