How to minimise your tax bill

For businesses

 

The trick is to take advantage of all available allowances and schemes, including:

 

·         Reclaim VAT on business expenses

If you are VAT registered, you can reclaim VAT that you pay when you buy goods or services for your business. You may also be able to claim for goods bought up to four years prior to being VAT registered and services up to six months prior.

 

·         Consider the VAT flat rate scheme

Depending on the way your business is set up and if the value of your annual sales is less than £150,000, the VAT flat rate scheme could save you money. The scheme also saves you time by simplifying the process of completing your VAT return.

 

·         Offset your losses

If your company or organisation is liable for corporation tax and makes a loss from trading, the sale or disposal of a capital asset, or on property income, then you may be able to claim relief from corporation tax.

 

For your personal finances

 

·         Make the most of the personal allowance

Is everyone in your family taking full advantage of the personal allowance? The allowance increased to £10,000 this April, so it is worth ensuring that both you and your spouse have used the full amount.

 

·         Make the most of tax efficient savings and pensions

The New ISA will take the amount you can save without being taxed each year to £15,000 from July. Putting money into a pension can also help to reduce your taxable income.

 

These are just some of the ways that you may be able to reduce your business or personal tax bill. We will assess your individual situation and work with you to keep your tax liability to a minimum.

 

Please contact us to find out more.