Tax Tips
TaxAssist Accountants have a number of great tax tips for you and your small business.
A bit of tax planning goes a long way! With our expert knowledge we can provide tax tips and advice relevant to your individual business. Contact us today and let us see what tax savings are available for you!
After all a bit of tax planning goes a long way!
Savings and Investments
Don't forget the kids! Children are entitled to the same personal allowance that is available for adults, so they can receive a certain amount of income tax free (currently £7,475). Children are also entitled to the annual capital gains tax exemption, currently set at £10,600 for the tax year to 5th April 2012.
Individual Savings Accounts (ISA's)
The ISA limit has been raised to £10,680, up to £5,340 of which can be saved in cash. The new limits will apply to all ISA investors from the 2011-12 tax year (starting on 6th April 2011) onwards.
Property and Loans
Rent-a-room! If you let out a furnished room in your own home, the rent-a-room scheme entitles you to receive a certain amount of rental income tax free. The relief can also be available for some bed & breakfast businesses too.
Losses
Trading Losses! If you operate an unincorporated business (partnership or sole trader) and you incur a loss in a period of trading, you can claim tax relief for this loss against other income in the year, or preceding tax years. There are varying conditions that have to be met for the relevant elections and you should always seek professional advice to ensure that losses are relieved in the most tax efficient way.
Benefits in Kind
Consider buying the company car and charging your employer for any business miles you travel in that car. You will own the vehicle privately and therefore will no longer have any car or fuel benefit charges. You can receive up to 45p per mile for the first 10,000 business miles in a tax year and 25p per mile for any additional amount travelled.
Tax Allowable Payments
Claim up to a possible 100% tax relief if your business invests in certain qualifying plant and equipment during the current tax year. The allowance doubled in 2010 budget and is currently available on the first £100,000 of expenditure. This is particularly useful for certain trade sectors, such as driving instructors with dual control vehicles. Please note this allowance falls for expenditure incurred from April 2012 to just £25,000.
Estate Planning
Do you have a nil rate band trust included in your will? Although any unused nil rate band can now be transferred to a surviving spouse or civil partner, there are still circumstances where this type of planning remains beneficial.
VAT
Reclaim input VAT if your employees use a rate per mile to calculate the business use of their private car. HM Revenue & Customs provide a chart which explains the claims procedures.
Tax Administration
File your self-assessment tax return on time. Don't forget, there is a £100 fine if you do not file your tax return online before the 31 January deadline and if you are still using paper returns, you must file the completed form by 31st October. HMRC will introduce a new penalty structure this year, which will mean that a tax return that is over six months late will incur a minimum penalty of £1,300.
Business Tax Planning
Consider incorporating your business: If you are currently running a small unincorporated business and paying income tax at higher rate of 40%, there may be a substantial tax saving available on incorporation. Corporation tax is currently set at 20% on the first £300,000 of profits for companies and a correctly structured remuneration policy to withdraw this profit will reduce your exposure to tax!
Personal Tax Planning
Personal tax planning is all about understanding the taxes that you are liable to pay and looking at ways to minimise them. Tax law is a complex area and you should always seek professional advice before making any decisions that may affect your tax liabilities.
"How can you help my business?"
TaxAssist Accounts have access to a vast library of tax information and can determine what tax savings are available to you and help you manage your tax affairs in the most efficient manner possible.
Call us today 0845 0176961 or fill out our contact form and we will call you back to discuss this further.
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