Tax planning is not a once a year activity. In fact, tax planning that is done properly can reduce your tax bill. You want to keep as much of your hard earned cash as possible and good tax planning can achieve this.
Knowing What Expenses Qualify
Most small business owners fail to claim all the expenses they are entitled to. As well as Pens, Pencils, Paper etc an accountant would expect you to claim a proportion of your home broadband, a dedicated work phone, your business mileage, professional memberships, and many training courses.
Timing Income and Expenditure
Payment of income through invoicing can be brought forward to ensure that you are paying tax on higher earning years and also capital expenditures can be brought forward to ensure that depreciation is maximised in years where tax is higher.
Using Your Allowances Properly
Your personal allowances, annual investment allowance and pension contributions all reduce your taxable income. Many of our clients have unused personal allowances that can be claimed against their previous year’s tax liability.
Planning for Payment Deadlines
Self Assessment payments on account can catch people out and it is often better to spread the amount that needs to be paid throughout the year.
A useful reference for Swindon Accountants is https://www.randall-payne.co.uk/services/accountancy/swindon-accountants/.
Spotting Reliefs You Would Miss
R&D tax credits, capital allowances on fixtures and flitting costs as well as overlap relief on sales of plant and machinery and cars to name but a few are often overlooked by sole traders and small business owners unless they have access to a competent accountant.
Good tax planning is an on-going year round activity that an accountant can help you to set up and complete.