There are often tax saving tips you can apply to your business to ensure you’re not missing out on legitimate ways to pay less tax.
Simon Cook from SRC Accountancy Services Ltd covers some of the ways you can ensure your business is tax efficient.
Tax saving tips you can apply immediately
Read on for a range of tax-saving tips that you may be able to apply to your business right away:
- Does your partner or spouse run errands for you, such as collecting items from suppliers or visiting customers for you? If so, they should be claiming for their mileage at 45p per mile.
- Are you operating as a sole trader? Businesses can save an average of £3,000 a year by becoming a limited company. This also means you will no longer need to make payments on account for your personal tax.
- Are you hitting the key deadlines? By meeting HMRC’s deadlines you’ll avoid paying fines and if you don’t wait until the last minute to prepare your tax return then you’ll know what your tax bill is going to be in advance. The deadlines are 31st December for a paper tax return and 31st January for submitting online.
- Are you claiming all of your tax deductible expenses? When you’re paying cash for things such as parking and coffee with a client then it’s easy to think it’s not worth claiming, but all of these expenses add up over the course of a year, and eligible expenses will reduce your tax bill.
- Have you made a loss? If you’re self-employed then you can carry forward losses from one year and offset them against profits from the next.
- Could you reduce your payments on account? If you expect to earn less in 2016-2017 than you did the year before, you can apply to reduce any payments on account that HMRC ask you to make.
- Who holds the assets? If your husband, wife or civil partner pays a lower rate of tax than you, you may want to consider transferring savings and investments into their name.
- Are you paying into a pension scheme? Contributions into a registered company scheme can reduce corporation tax while putting money in the owners’ pension schemes.
Simon covers tax saving tips and updates in more detail in his webinar…
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