It’s no secret that everyone wants to pay as little tax as possible. Business Owners are no different and saving on tax is of interest to most. Finding out about ways that your business can pay less tax and keep the pennies in the pocket of your business. Knowing the world of taxes can be confusing, especially if you are new to it all. One way to keep a lid on things is to know a few easy ways which you could be saving those valuable £s. Have a look at our list and find out 5 different ways to do so.
Money spent on Business related travel is deductible and an area where significant savings can be made. Whether it’s traveling to a client meeting, seminar or Business trip, tax can be saved. This expands to parking, air, train, bus and taxi travel. On top of this, you could save when it travelling in your own car, as long as it is Business related. Further savings could be made if you are dining on these travels. This could be lunch with Business associates or dinner at a hotel on a Business trip. The range of costs which could be saved is substantial and is an easy way to save money for your Business.
Know Your Industry
Acquiring knowledge on the sector which your Business operates in could be a valuable endeavour. Communication with your trade association or union will get you in the know about how savings could be made, specific to your industry. Savings on uniforms is an example of this and could save you on tax. Knowing as much as you can about your industry and finding out how others in your sector save is a well worth task and something that all Business Owners should pay attention too.
Office equipment, stationary, computers, laptops, software, furniture. The list goes on and on. Any equipment which is used to carry out Business is tax deductible. Keeping a note of these purchases could come in handy when making your Tax returns as a lot can be taken from the receipt price of your purchase. An example of this is shown as the average savings of setting up a laptop, printer and software for a Business is £200. This means that if you were not aware of these deductibles, your Business could be losing out on a fair bit of capital.
Claiming back on the cost of Business related phone calls is a saving which can benefit any small business. This can range from home landline to mobile phones. As long as they are registered as the Business phone number, savings can be made. Research in the UK has shown that Businesses could save over £100 from deducting telephone costs from their returns.
Get to Know Your VAT
VAT is an area of Tax where a lot of Small Business Owners lose out. Do you know what your industries flat rate VAT is? Depending on what industry you are in, you could be making more savings than first anticipated. Have a look at the HMRC website and you will find what flat VAT rate is for different industries. Joining up to flat rate VAT schemes is well worth the time and effort. The result is keeping the difference of what you charge customers for VAT (usually 20%) minus the percentage of your sector.