Tax Savings

Today, many individuals and companies are searching for ways on how to minimize their tax liabilities; however, most of them are having a hard time understanding the different available reliefs and allowances which they may be entitled to. This is exactly the reason why we are offering assistance to all those who are interested in making tax savings but are not sure where to start or how to go about doing it.

We offer all kinds of resources and advice as well as tax planning reviews which would help you in making sure that you would only be paying taxes that you are legally to and nothing more. We would be making sure that we would be able to provide customized services that would suit you or your company’s specific tax planning needs.

Here are some tax saving tips that can guide you on some tax planning strategies.

1. Ensure that you have been able to claim all of the tax relief which you are entitled to as far as your plant and machinery purchases are concerned.

2. If you have computers or other equipment that have a life of 4 years or less, it would be advisable to make it a short life asset when you claim your capital allowances. This means that you would be getting tax relief for the total costs of the items more quickly if you sell or scrap them within that period.

3. Tax relief for vehicles that have emission levels that are below 120mg/km is generally given more quickly compared to the tax relief for other cars which are less environment friendly. This is especially useful to bear in mind if you are planning to replace your business vehicles.

4. Consider making your spouse an employee. This particularly applies if your spouse helps in some aspects of the business such as in marketing or general administration. It is important, however, that you would be following specific rules such as how much you would be paying your spouse. You should also make sure that you have evidence that payments were made within the year. Sole traders who have higher rate tax liabilities would be able to greatly benefit from this set up and through setting up a kind of an employer pension plan.

5. Assess whether it would be better for you to trade as a partnership, a limited liability partnership or as a limited company instead of as a sole trader. By incorporating your business in the proper circumstances, you may be able to save tax.

6. If you are using your home for purposes related to your business, you would be able to claim a tax deduction in order to cover a part of your home operation costs. The deduction would often be around £2 to £10 per week or even more, as long as it can be justified.

7. You can also consider registering your business voluntarily for VAT. If you register, then you could claim VAT back. There is no need for you to exceed the turnover limit; however, you may be at a competitive disadvantage if your competitors are not charging VAT or if your customers would not be able to reclaim it. If you are not registered, then you can claim the relief for the costs including VAT.