Some expenses can be prepaid in March and claimed as a tax deduction in the 2015 tax year, regardless of their amount. These include stationery, postage and courier charges, vehicle registration and road user charges, rates, newspaper subscriptions, and even accounting fees! Other expenses have limits on the extent to which they can be claimed if prepaid. These include rent, consumables (materials used in the manufacture of a product or service), insurance premiums, professional or trade subscriptions, travel, and advertising. The rules around prepayments can be quite complex, so if you’re planning this type of expenditure, please contact me.
To claim a deduction for a bad debt you need to physically write the debt off in your debtors record before 31 March 2015. There should also be evidence that you have taken reasonable steps to recover the debt prior to writing it off.
Any amounts owing to employees at year end (such as holiday pay, bonuses, long service leave, redundancy payments) can be claimed for tax purposes in the 2015 tax year as long as they are paid within 63 days of 31 March 2015.
The book value of assets can be written off for tax purposes if the asset is no longer in use by the business, the business has no intention of using that asset in the future and the cost of disposing that asset is expected to be greater than the proceeds from its sale. Actually, it’s simpler than that. Scan your asset schedule from last year’s accounts and you’ll probably notice assets that no longer exist (for example the mobile phone that you dropped on your driveway and drove over it), or simply don’t work