DavidBarry(lford)AccountantsTaxadvisers - tax planning for limited companies

Tax Planning for Limited Companies

Email Out: 05042011

Limited Company Financial Accounts for the year ended 31/12/2010.

I have now completed the work of bringing forward all balances at 01/01/2010 in preparation of completing the financial accounts to 31/12/2010.

It is better if I can begin the work early and make a start by reconciling the limited company bank accounts (there are two of them).

Please note that this is the time of year when I plan all the work and it is better off I can complete this early for the following reasons:

1. By beginning the work early I reduce the likelihood of the limited company incurring any tax related penalties at companies house (accounts must be submitted by 30/09/2011) and at HMRC (accounts must be submitted by 31/12/2011 but the tax must be paid by 01/10/2010).

2. I can better plan for the reduction of corporation tax by advising about further salary extractions to 30/09/2010 must be made by the time limit of nine months from the end of the company year end).

3. I can better plan for personal tax because directors/employees pay/further dividends/directors loan extractions must be made by the time limit of nine months from the end of the company year end that is 30/09/2011 otherwise these are discounted for personal tax planning purposes.

(05042011-30092011 equates to 25+31+30+31+31+30 = 178 days = 178/7 = 25 weeks.)

Email Out: 28/03/2011

I will complete the brought forward balances to 01/01/2010 today and then wait for you to advise me that the books and records of the business.