How can our pre-year end tax planning review help you?
Running and growing your business can be hard. Perhaps for every sale you win, only a small portion of each win is profit. It’s a lot of work to find, win, deliver and get paid, so we could help increase your profit by tax planning with you. Tax planning requires far less work than driving sales and 100% of the savings go to the bottom line.
For any business, there are normally only a handful of things you can do to minimise your year end corporation tax bill after you Year End date has passed.
The key is to address your tax position before your year end so that we have time to do something about it.
How to make your pre year end meeting work for you.
One of the key elements in making tax savings is being on top of your accounts. This is essential if you want to understand your position before year end.
Here at Seed Accounting we use a cloud based software, Xero, for many of our clients. This is an important tool to help forecast and manage your accounts on a monthly basis. We can then use this to estimate your tax bill and start to think about how to reduce it.
There are many options that we can think about, here are a few ideas.
Make a claim for R&D (Research and Development) tax credits
Make contributions to a personal pension scheme
Pay your life insurance premiums through your company (you’ll need to change to a Relevant Life Policy)
Invest in Capital Equipment – Furniture/Equipment for the office, Computer Equipment, a Company Vehicle
Make a claim for using a room in your home as an occasional office
Pay a modest salary to your spouse for the time they spend working in the business (and make sure you are getting a salary yourself too!)
Defer any income that is going to be paid before the year-end to next year if the work is going to be performed after the year-end
Accrue for any costs relating to this accounting year that will be billed after the year-end e.g. is your electricity and gas for the last quarter billed just after the year end?
Write off any debts that you have given up trying to recover from your customers
Make a claim for any business mileage done in your own vehicle
Our Pre-year End tax planning review service is available to all our business clients regardless of turnover. If you are already a client of ours and you'd like to add this to your existing services, please get in touch with us.
If you are not a client of ours, and you’d like to find out more about how we can help you, please get in touch today.