Maximising Deductions and Reliefs
The bulk of taxation minimisation is carried out during the year as you trade. The choices you make regarding the structure of your business obviously affect your taxation liability but once an appropriate business structure is chosen its all about maximising deductions, reliefs and Credits in order to ensure you pay the correct but lowest amount of taxation possible.
On a regular basis we review how clients are utilising
- credits and
There are many methods to decrease you taxation liability and the following should be looked at
- Year End tax Planning
- Incurring expenses or acquiring assets before year end that you are likely to incur/acquire shortly thereafter anyway
- Taking out pensions
- Invest in BES – ( never do this without ensuring the investment is sound, if you lose all you money the tax break is not worth it)
- Gift the annual exemption amount to your children
- Employing your children, if they already work in the business then by all means formalise it and put them on your wages. If they don’t already work in the business then put them to work !!!.
- Employ your spouse. Make sure both of you can at least maximise your 20% tax band. This is crucial
- Opt for averaging if you are a farmer
- Claim your mileage rates
- Buy an iphone and use Plendi to photograph your receipts so you can claim the
- Claim the maximum and correct Personal Credits / Medical Expenses and Flat rate Credits. ( Don’t forget flat rate expenses)
The list goes on, but the key is you review this on at least a yearly basis, during the year ( not after ) and ensure you’re in the best position possible to minimise your tax using these categories.
Finally – Don’t forget
- File your taxes accurately and on-time in order to avoid penalties, interest and revenue Audits. In business there’s no point in being penny smart and pound foolish, especially with taxes. Show proper care and attention to your books and records. Move to our Online accounting system and this won’t be a problem – ever.