If you make just one resolution this year, be sure it’s one that will be really beneficial to your business – for example, mitigating your tax burden. These five tax-related tips would be a great place to start…
On form Is your business trading in the most tax efficient way? Changes announced in recent Budgets have meant that rethinking whether you are a sole trader, partnership, limited company or limited liability partnership could be worthwhile.
Valuable savings Businesses which make sales of less than £150,000 can switch to a flat rate VAT accounting scheme, which is not only simpler to administer, but could result in less VAT being paid as well as improving cash flow. Have you checked whether you’re one of those businesses that would be better off this way?
Kind thoughts Employees are a business’s key asset – so by utilising tax-free benefits in kind you’ll not only be limiting your tax liability but also keeping an important group of people happy. These can include mobile phones, health checks, car parking and pensions, amongst others.
That’s a relief If you’re about to investin new computer, vehicle, or any other equipment for your business, make sure you think about the best time at which to do this. For example, if you buy the item just before the year end, you will get the tax relief more quickly plus utilise current year allowances, and retain next year’s allowances for further capital investment. This also applies to investments in plant and machinery – click here to read our in-depth article on these capital allowances.
Sale of the century It may not even have crossed your mind, but planning for the eventual sale of your business – however many years ahead that may be – is something you should be thinking about now in order to avoid a huge tax bill when the day eventually comes.