Tax can be a minefield for business owners and it’s certainly not straightforward. BizSmart Select Member Simon Cook of SRC Accountancy Services is an experienced accountant, used to working with small business owners.
In his webinar, and the blog that follows, he delivers some tax tips for business owners to help you understand the places where you can benefit from tax savings.
Often business owners aren’t making the most of the legitimate opportunities available to them to save on tax.
Here are some suggestions for reducing your tax burden:
The childcare voucher scheme
The government has announced a 6-month extension to this scheme and employers can now continue to offer childcare vouchers. The scheme was previously scheduled to close on 5 April 2018, to make way for the government’s tax-free childcare scheme.
But there have been problems with the rollout of tax-free childcare, so childcare vouchers will now remain open to new applicants until an unspecified date in October 2018.
Claim the NIC employment allowance and potentially save £15,000
Most companies (with the main exception of “one man band” companies) are entitled to claim up to £3,000 a year against any Employers’ NIC they have paid. Many business owners are not aware of this relief, and it’s not just about making savings in this tax year. It’s possible to go back and reclaim up to four years’ allowances, plus the current year, meaning a potential refund of £15,000.
Research & Development allowances are incredibly generous, allowing you to deduct 230% of your actual spend on R&D against corporation tax, or claim a cash rebate if you are loss making. The problem is that many companies assume that they don’t qualify without ever asking the question. For the sake of a phone call it is well worth finding out.
Capital Claim Allowances on Fixtures
Every so often a company will incur significant expenditure on a new capital project such as the purchase of new offices or warehouses. Clients will often pay the purchase price and assume that as it is a building, no plant and machinery allowances are available.
However, often these buildings contain significant fixtures and fittings on which very valuable capital allowances can be claimed. HMRC won’t just give them to you – you need to identify and claim them – so it’s a good idea to call an experienced accountant while you’re in the process of purchasing a property, to see what is available. Even if you’ve already made the purchase, it’s worth making that call to see what you can claim.
- Tax allowances at each income level,
- Using your home as an office
- Rent relief
- Transfer of assets (Good for second property owners)
- Becoming a limited company
- Reducing payments on account
- Paying into a pension scheme
BizSmart aims to help SME and micro-business owners scale their businesses and create value through sound practical business support. We aim to give you insight and clarity and fire up your determination to succeed. You can access blogs like this and more besides through our free SmartRoom service here