Our top tax savings tips…
Follow our top tips to improve your tax savings!
1) Remember the cost of a ‘staff work’s do’ are up to £150 tax deductible per head!
2) It usually better for a business owner to claim 45p per mile mileage using a privately owned car. You could save thousands of pounds each year in company car tax.
3) If you or your team spend time creating innovative solutions for your customers (product or process) you may be able to access generous company tax relief for Research and Development.
4) Make sure that you are on the right VAT scheme (yes, there is more than one!) for your business. This could seriously benefit your business’ cashflow!
5) Be sure to pay yourself an annual salary up to the optimum national insurance threshold from your company (£8,600 for 2019/20), even if you don’t take it. It maintains your NI record and is company tax deductible.
6) Gift your team up to £50 per head (not in cash or vouchers) as unexpected gifts are tax deductible! HMRC call it a trivial benefit but it won’t be to them!
7) To help retain key individuals in your company, consider introducing a tax efficient employee share option scheme, they can be performance related or triggered upon successful sale of company.
8) HMRC’s Making tax digital is now in full swing! This affects how VAT registered business submit their records. We know all about it so ask us if you have any questions!
9) Plan ahead (2-3 years) with your adviser about selling or retiring from your business. You want to make sure that when the time comes you can make the most of cashing in at the lowest tax rate possible – ideally 10%!
10) The company can make tax deductible employers’ contributions into your pension (company directors). You may choose to then use this as a vehicle to purchase a business property.
11) Consider setting or reviewing your business’ strategy for 2020. Simply focus on these three key categories: People, Profit and Sales. If you want to add some structure to the how, or better still be made accountable, we’re the ones to speak to!
12) Finally our best tip yet – REST! You can’t pour from an empty cup! Always make sure you look after the most important asset to your business AKA you!