With the summer holidays in full swing and people turn their attention to suncream and staycations, it’s easy to forget that summer is also a critical time in the financial calendar. While January might feel like the obvious ‘tax season’, the quieter summer months present a golden opportunity to take stock, review your finances, and get ahead of key tax deadlines.
Here’s how individuals and businesses can make the most of the summer lull and prepare effectively for what’s ahead.
Get ahead with your self-assessment
For self-employed individuals and company directors, the 31st January self-assessment tax return deadline might seem a long way off. But submitting your tax return early has several benefits including better cash flow planning, early tax refunds, and less stress later in te year. You’ll know exactly what you owe months in advance, giving you time to budget accordingly and if you’ve overpaid tax, submitting early can mean a quicker refund. Summer is the perfect time to gather your records, speak to your accountant, and get your return ticked off the list. By avoiding the January rush you avoid the risk of missing the deadline and incurring penalties, plus you will make your accountant very happy!
Review your Limited Company’s finances
For limited companies with financial years ending at various points in the calendar, summer can be a strategic point to assess performance so far. A mid-year financial review can help you: identify underperforming areas, adjust projections and budgets plan for upcoming corporation tax liabilities, and take advantage of available reliefs and allowances before the year-end. Your accountant can help you conduct a detailed financial health check to ensure your business remains on track.
Consider tax-efficient investments and pension contributions
If you’re a high earner or company director, now is a good time to review whether you’re making the most of tax-efficient options. Consider and take advice from your accountant or financial advisor on maximising your pension contributions, ISAs, and investments to gain significant tax reliefs. Starting early means you’re not scrambling next March to make last-minute decisions.
Tidy up bookkeeping and records
With many businesses experiencing a slowdown in summer, it’s an ideal time to reconcile bank statements, organise receipts and invoices, review expense claims and ensure your cloud accounting software is up to date. Clean records now mean fewer headaches later and a smoother year-end process.
Summer might not traditionally be associated with tax planning, but a little attention now can pay dividends later. Whether you’re self-employed, run a business, or simply want to get ahead, using the quieter months to review and plan can put you in a stronger position when deadlines roll around.
Need help with your mid-year review or want to discuss your tax planning options? Get in touch with our team today – we’re here to support you, rain or shine.
