Accounts and CT600 Year End Checklist

BACKGROUND

About This Checklist

This is a GENERAL CHECKLIST. 

It DOES NOT ask for figures and is intended as a reminder of things that can change from year to year.  

We will obtain any details separately, if we don't already hold them.

Please answer each question to the best of your knowledge and if you are unsure about any answers either,
 a) give us a call or 
b) make a note of your query or comment in the "additional information" section towards the end of this checklist.

YOUR DETAILS

Your T4 Client Reference

e.g. A111 (if not sure just leave blank)

Company Name

Enter company name in full including the Limited at the end

Directors First Name

of Director that will sign the accounts

Director's Surname

of Director that will sign the accounts

Your Email *

For most submissions you will also get a copy of what you tell us, by email.

ACCOUNTING YEAR

The form relates to the accounting period we are in the process of finalising.

Relevant Accounting Year End

Select year in list

Relevant Month End

Select month in list

BOOKKEEPING, INCOME & EXPENSES

Relating to the above accounting period

Did all the income for the company go through the business bank accounts, business credit cards which are linked to Quickbooks?

Yes, all funds are in, or go through, business accounts linked to Quickbooks

No, not all funds or expenses have gone through company bank accounts

Quickbooks links directly to many business accounts or credit cards and imports transactions in real time. If you pay for business expenses via a) your own personal bank account, b) personal credit cards or c) business accounts that cannot be linked directly to Quickbooks this can increase the risk of errors or things being missed. It also increases the time and costs of adding these other external items into accounting records.

You said "No". Please briefly outline what sort of income or expenses which did not get paid into, or out of, the business bank and business credit card accounts.

All income and expenses need to be included in the year end accounts, CT600 returns etc. You don't need to list or add specific item details here we will liaise with you separately on how to get these external items added.

Are you aware that paying for business expenses from personal bank or credit cards increases the risk of errors or things being missed?

Yes, I am aware

No, I had not considered that point

Are you aware that paying for business expenses from personal bank or credit card accounts will increase time and costs of including those items in accounting records?

Yes, I am aware

No, I had not considered that point

Expenses, to be tax deductible for a business (and not taxable on the employee) MUST BE "wholly and exclusively" for the purposes of the company's business, i.e. no private use or benefit for the employee.

Yes, I confirm I am aware of this and all expenses are wholly business

Not sure what this means, can I talk to someone about it?

COMPANY ASSETS

Does the Company own a VAN or vans?

Yes, the company owns one or more van(s).

No, the company does not own any vans.

Do any directors or employees use company vans for ANY "private use"?

Yes, there is private use

No, van(s) are never used for private journeys

See Gov.uk/HMRC Link to definition of Private Use (below)

See the following link for HMRC guidance on what they view as "private use".

https://www.gov.uk/expenses-and-benefits-company-vans

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"Business journeys and commuting"

A business journey is defined as a trip:

made as part of work (such as a service engineer travelling between appointments)
to a temporary workplace

Vans used for ‘insignificant’ private journeys are exempt, for example making a slight detour to pick up a newspaper on the way to work.

Does the company own any company cars?

Yes, the company owns a CAR or cars.

No, the company does not own a car(s).

See link below for HMRC guidance on Company Cars

https://www.gov.uk/tax-company-benefits/tax-on-company-cars

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A private journey would include "commuting" to and from your normal place of work, or any other journey that is not specifically travel to or from a business activity.

NB: HMRC has recently stated that dual cab open back pickup trucks that weigh over 3500kg are vans for tax purposes.

Do any directors or employees use company cars for ANY "private use"?

Yes, there is private use

No, car(s) are NEVER used for any private journeys (e.g. pool cars)

See Gov.uk/HMRC Link to definition of Private Use (above)

What about use of your OWN car (not owed by the business) for business journeys?

I USE my own car for business journeys (not including "commuting to an from a regular place of work)

I DON'T do any business miles

HMRC Guidance on Mileage Allowance Claims, rates etc (£0.45 per mile for first 10,000 business miles then £0.25 p/mile) Sometimes referred to as AMAP (Approved Mileage Allowance Payment), or MAP (Mileage Allowance Payment)

LINK: https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances

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Approximate annual business miles travelled

This is just to give us an indication of your level of use of your own car for business journeys it is not an actual calculation for Mileage Allowance claims from the company using HMRC approved mileage rates.

Does the Company have a written agreement with employees (including directors) that there is to be NO private use of ANY company assets?

No, there is no such written agreement about private use

Yes, the company has a written agreement that no private use is allowed, AND it could be demonstrated to HMRC that all employees are aware and have agreed to this

IF HMRC suggested that there is, or maybe, private use of any company asset, this could create a tax liability on that asset. This could affect both the employer and the employee or director. Hence, it is important to ensure that where no private use of assets is allowed, that this is documented.

Would you like T4 to help you with a Company Policy (Staff Manual) that states there is to be no private use of company assets?

Yes, we need help with this from T4, give me a quote

No, we will ensure an agreement is put in place ourselves

T4 use "Bright Contracts" for employee agreements, Employee Contracts, Office (Staff) Manuals, and Employee Privacy Policy (part Data Protection Rules) documents . "Bright Contracts" are HR specialists. There would be a separate fee for preparation of internal manuals or agreements of this type using the Bright Contracts resource.

COMPANY FUNDS

Are you aware that it is important to keep sufficient funds in the company to pay for Corporation Tax (CT), PAYE, VAT etc?

Yes, I am aware that funds need to be retained in the company to fund CT, VAT and PAYE liabilities

No, I had not considered that point, but will ensure I do that now

Or, I need further information and advice on this point

Failing to keep sufficient funds to pay taxes on time, throughout an accounting period can lead to a company becoming insolvent which can have various negative consequences.

Earning interest on tax savings and reserves (e.g. Aldermore.co.uk).

I use interest bearing accounts (e.g. aldermore.co.uk) to earn interest on company savings or tax reserves

No, I don't use interest bearing accounts to invest my CT funds until they are needed to pay tax, and I am not worried about loss of interest return.

If a savings account cannot be linked directly to Quickbooks (e.g. Aldermore.co.uk and "savings pots" in app based banks like Monzo) the trick is to opt to get the interest paid into your elected main business bank account (where Quickbooks can then track the interest received). This saves a lot of bookkeeping time otherwise spent manually entering and reconciling interest earned.

Are you aware that borrowing funds from your company has tax consequences for both the employee/director and for the company?

Yes, I am aware of that

No, I had not considered that point, but will ensure I do not borrow funds from the company in future

Or, I need further information and advice on this point

Broadly speaking directors and employees cannot borrow more than £10,000 from the company without triggering tax charges. This is the limit DURING an account period (Income Tax Consequences). However, by the company's year end NO loan should be in place (Corp Tax consequences), and the director should not have an overdrawn director loan account (DLA) for at least the first 31 days of the month following the end of the accounting period (Corp Tax consequences).

Are you aware that using company funds to pay personal expenses of directors or employees risks HMRC adjusting the tax liabilities (plus fines) of both the company and the employee?

Yes, I am aware of that

No, I had not considered that point, but will ensure I do not borrow funds from the company in future

Or, I need further information and advice on this point

Common examples of personal expenses HMRC look for include, food, clothing, private or "commuting" travel expenses, other travel costs, home utility bills, private health insurance or care costs. Expenses to be for business purposes have to be "wholly, exclusively and necessarily in performance of the employees duties of employment" and cannot generally have any private element or private benefit.

Are you aware that any personal expenses or benefits for a director or employee MUST be declared on form P11D or taxed via payroll?

Yes, I am aware of that

No, I had not considered that point, but will ensure no personal expenses are paid by the company

Or, I need further information and advice on this point

Personal expenses claimed by a company must be declared by the employer to HMRC on form P11D or taxed via Payroll. Failure to declare or tax personal expenses or "benefits in kind" can lead to substantial fines by HMRC.

Does your company, or have you considered, if the company could benefit from a Pension Scheme for the Directors?

The Company already has a Company Pension scheme for directors (separate from Nest Employee Pension Schemes)

The Company pays employer contributions into a Director's Personal Pension Scheme

I have considered this and don't feel it is appropriate, at the present time

I am not sure about pensions, and could do with some advice

T4 Tax Limited is not authorised under the Financial Services Act to give specific advice about investments including pensions. However, we can give general advice about the tax implications of investments.

CHANGES DURING THE TAX YEAR

CHANGES during the accounting period, or since.

Changed any vehicles you own or lease (only ones used for employment or business purposes)

Did the marital status of any of the director/shareholders change during the year?

Changed Address (moved)

Does the level of income taken by the directors or shareholders affect the ability to secure a mortgage or rental property (as far as you are aware)?

Other items I am not sure about and need advice

OR, NONE, were applicable for the account period, or since

Select ALL or ANY that apply to you for the tax year concerned.

Date Moved (changed address)

If you can't remember the exact date enter the last day of the month you moved

New Address

Please enter full new address including postcode.

OTHER REMINDERS (Director Responsibilities)

This section is some reminders about regulations and possible requirements for business generally, that are not part of our service, but are items directors should ensure they are aware of. (There may be others relevant to your specific business such as Anti Money Laundering Regulations, supervision, memberships etc).

Business Insurance (Professional Indemnity)

Yes, I have considered and updated my business insurance

No, my business don't need business insurance

Employer Insurance

Yes, My Employer Insurance is Up to date (Substantial fines for failure to have employer insurance)

No, I have considered my situation and am not required to have Employer Insurance

NOTE: If more than one director or any employees Employer Insurance is a LEGAL REQUIREMENT (from as low as £60 per annum)

Gov.uk Guidance of Employer Liability Insurance:

LINK: https://www.gov.uk/employers-liability-insurance (opens new window)

Summary:

"You must get Employers’ Liability (EL) insurance as soon as you become an employer - your policy must cover you for at least £5 million and come from an authorised insurer.

EL insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you.

You may not need EL insurance if you only employ a family member or someone who is based abroad.

You can be fined £2,500 every day you are not properly insured."

Information Commissioner (ICO)

Yes, My business is registered with the ICO (Substantial fines for failure to be registered)

No, I have checked and my business is exempt from ICO registration

We recommend ALWAYS being registered with the ICO. Annual fee (easily automated on direct debit Approx. £40 per annum). Most businesses have customer, supplier or employee details on computer or devices.

Here is a link to the ICO register so you can search to check your business is registered:

(links open in new windows)

SEARCH REGISTER: https://ico.org.uk/ESDWebPages/Search

REGHISTER WITH ICO:

REGISTER LINK: https://ico.org.uk/for-organisations/data-protection-fee/

If you hold client or customer personal information on a computer (e.g. in Quickbooks or on your phone or computer) you must be registered as a data holder with the ICO. The annual fee that can be paid by direct debit to avoid forgetting to pay is usually about £40 per annum.

There are substantial fines for failing to be registered with the ICO.

SIGNING THE ACCOUNTS

Will you be the only director approving and signing the accounts and corporation tax return?

Yes, I will be the only one signing the documents for the company

No, we would like other directors to also sign and approve the accounts

Name of 2nd Director Signing (if applicable)

First

Last

Email Address of 2nd Director signing

Name of 3rd Director signing (if applicable)

First

Last

Email Address of 3rd Director Signing (if applicable)

OTHER INFORMATION OR UPLOADS (optional)

In this section you can upload documents to help us with your accounts preparation or alternatively you can share these with us via email to t4.office@t4tax.com or via WhatsApp.

Please enter any other information or comments that you think might be might be relevant here, Thank you.

For example, if you were not sure of any of your answers you can add any further comment here to let us know.

File Uploads (alternatively you can email documents to t4.office@t4tax.com)

Maximum file size: 8MB

Types, jpg, jpeg, PNG or PDF only. Max file size per file 8MB, max number of files you can add is 10.

FEEDBACK & SIGN

How easy did you find this form to deal with?

1 star = very difficult to 5 stars = easy

FEEDBACK, comments or suggestions (if any)

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We need your agreement to the following:

I understand that if my accounts DO NOT include ALL relevant income, expense or relief claims HMRC could fine the company for incorrect or incomplete tax returns.

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