Top 10 tax saving tips

Bevan & Buckland AccountantsTop 10 tax saving tips

  1. When starting a new business consider whether it is more tax efficient to run the business as a sole trade (or partnership) or a company.  In addition, the best structure when you start your business may not remain the best structure, and therefore it is important to review the position on an ongoing basis.

  2.  Consider the way in which you draw money from the business. If a limited company, paying a small salary up to the personal allowance and the balance as dividends is normally the most efficient method.  However, this is not always the case.

  3.  Capital expenditure. Consider the timing of any capital expenditure in order to maximise the reliefs that are currently available.  Also, ensure all reliefs are claimed, such as business premises renovation allowances.

  4.  If you are married and your spouse works in the business consider whether your combined remuneration is tax efficient.  In addition, if you operate your business through a company consider giving them some shares in the company.

  5.  If you work from home you could claim a deduction to cover part of your home running costs. Currently HMRC allow £4 per week without requiring any evidence.

  6.  Payment for business mileage. Employers’ can pay staff tax-free mileage rates when they use their own car for business. However, many employees don’t realise that if their employer pays them at a rate which is less than the approved rate i.e. 45p per mile for the first 10,000 miles, then they could claim a tax deduction for the shortfall.

  7.  Review your revenue expenditure to see if you are entitled to claim enhanced tax reliefs, for an amount in excess of the amount actually spent.  For example, research and development and land remediation expenditure.

  8.  If you own (or are considering acquiring) the premises from which you operate your business consideration should be given to the most tax efficient way in which the property is held e.g. personally, within the company or in a pension fund.

  9.  Losses incurred in the first years of trading. Taxpayers frequently miss out on an additional valuable tax relief – the availability of a three year carry back for losses incurred in the opening years of a trade.

  10.  Remuneration of staff.  It is important to consider staff remuneration and this can include, for example, salary sacrifice or share options.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

 Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

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