Some of you may not have seen the excellent Tax Tip sent by Sandra Patterson from Boxby recently, with her permission I have added it here. If you know a courier, please send the info on to them. If they had a tough year, this can make all the difference.

Sandra and Boxby’s details are at the bottom of the page.

Tax Tip for the Year End.

I know that many of the business using Boxby will be trading as sole traders & partnerships.  Also, that 2008-9 has been a very tough time for the Courier & transport industry, so here is a quick tip from Boxby to help self employed businesses with their tax bills.

The tax that you paid in January, and the payment due in July is a payment on account for the 2008-9 tax year, with the balance and tax return due 31/1/2010.

However, the payments made are based on your profits for the previous year.  Now 2008-9 saw record high fuel prices, a recession, and the introduction of a new Annual Investment Allowance for anyone that bought vans during the year.  This means, that for many couriers and transport businesses, 2008-9 profits are likely to be lower than the previous year.

We therefore recommend that you get your accounts and tax returns in as early as possible this year.  The 2008-9 tax year ends a few days time, and you can submit your return anytime after then.  If your taxable profits for 2008-9 are lower then the previous year then you can reduce your payment on account due in July.    And if your business has made tax losses then you can usually apply for a repayment of tax.

All of this is better done sooner than later.  So if 2008-9 has been a tough year for you, then at least get this bit sorted and make sure that you’re reducing your tax payments appropriately.  There is no benefit at all to leaving this until the end of the tax year.  So speak to your accountant and get it sorted!
Regards
Sandra Patterson
Boxby Ltd
E-mail: admin@boxby.co.uk
Web: www.boxby.co.uk

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