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Tax Savings

There are various allowances and reliefs available which can help minimise tax liabilities arising on earnings, profits of trade or gains when you sell chargeable assets, but understanding what they are and which ones you are entitled to can be daunting

Although HM Revenue and Customs (HMRC) has helplines available to assist taxpayers, staff members are not tasked with providing advice on how to organise your affairs in order to minimise the amount of tax you pay.

If you are looking to make tax savings but do not want to attempt to interpret detailed tax legislation, you should seek professional advice. We offer all clients tax planning reviews and try to ensure that our clients only pay as much tax as they are legally obliged to and no more!

Whatever your tax planning needs we will endeavour to find a tax saving scheme to suit your circumstances so make sure you contact us, especially as there may be more specific tax planning tips and tax advice available for your business sector.

We have included a series of tax tips below which provide general guidance on various tax saving strategies and should answer some of your tax questions.

Employing your spouse in the business

If you are self-employed and your spouse helps out with general administration, or any other role, it is quite legitimate to pay your spouse a salary.

However, there are a few rules that need to be followed, such as how much to pay your spouse and to keep evidence that the payments were made during the year.

Sole traders with higher rate tax liabilities will benefit significantly from this arrangement if their spouse is a non taxpayer or lower rate taxpayer, and further tax savings could be made by making pension contributions. 

Low interest loans provided by employers

It may be possible for a company to lend an employee up to £10,000 with no tax implications for them, provided they are not a director. This can be useful if say the employee needs to buy his company car to avoid benefit in kind tax charges.

Stock valuation

Stock should be valued at cost, but can be valued at ‘net realisable value’ if this is a lower figure. Essentially this means valued at what you could sell the stock in an open market sale. Lowering the value of closing stock will £ for £ reduce taxable profits.

Recover VAT

Recover VAT on some invoices that you have paid or received before you registered for VAT by including the input VAT on your first return. Make sure you have the VAT invoices and keep a schedule of the adjustments you have made. Be careful though, there are time limits and rules for this recovery measure so be sure to speak with your accountant!

Capital Gains Tax - Selling Property

If you have Capital Gains Tax (CGT) to pay, for example because you've sold a holiday home or rental property, you will need to complete a tax return. From April 2020, you must report and pay the CGT to HMRC within 30 days of completion. TaxAssist Accountants can advise you on any tax planning opportunities available, in order to minimise your liability. We can also complete your tax return and 30 day report for you.

Capital Gains Tax - Using Home as Office

If you claim tax relief for the use of a room as an office there can be a tax charge when you later sell your home, however we can advise you of measures that can be taken to help to minimise a Capital Gains Tax liability.

Helpful Videos

Our webinar recordings delve into the tax planning considerations for companies, sole traders, partnerships and personal taxpayers:

Tax Planning for Companies

Tax Planning for Sole Traders and Partnerships

Tax Planning for Individual Taxpayers

 

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0800 0523 555

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