For Self-Employed Individuals:
- Registering as self-employed during the middle of a year may entitle you to a tax refund on any PAYE taxes you paid during your previous employment.
- If you're self-employed and work at home, remember that you can claim some portion of your home expenses for your office use.
- Any items that you use in the business that you had purchased before launching can be claimed as business costs. This includes your computer, mobile phone, and any inventory that you may have.
- For those of you who are currently self-employed, consider whether or not you would be better off transferring your business to a limited company. Limited companies handle profits and paying money out of the business in different ways, which may lead to savings on your next tax bill.
For Limited Companies:
- Register your mobile phone account under the name of your limited company. This will allow you to write off the entire cost as a business expense, instead of having to calculate what percentage of your personal account is used exclusively for business.
- Set up a pension through the company, which will both provide you with some security for the future as well as giving you another cost you can write off against your profits.
- Log all your mileage for business trips very carefully. You can claim 45p / mile for the first 10,000 miles, then anything over 10,000 at a rate of 25p /mile. What most don't know however is that you can also claim for a motorbike at 24p / mile and 20p / mile if you use a bicycle.
- Pay yourself a very minimum of salary, and take the rest of your compensation in the form of a dividend which will be taxed at a lower rate
For All Small Business Owners:
- Make sure you get your accounts handled by a reliable accountant who is a member of one of the professional regulatory organisations such as the Institute of Chartered Accountants in England & Wales, the Association of Chartered Certified Accountants or the Association of Accounting Technicians. Not only will they make sure that your accounts are handled properly and efficiently, they'll also be able to make sure that you're claiming all possible costs to minimise your tax payments. Avoiding fines and late payment fees can be a huge boost to your business, and you never know what new costs they may find that you can claim.
- If you're registered for VAT, you may find additional tax savings by changing the VAT scheme you are registered with.
Talk to us today to see how we can help you and your business.
GET IN TOUCH