tax planning
Posts tags tax planning
Tax tips for the Self Employed
If you are self employed, there are many things to consider when assessing the tax health of your business.
We have listed below just a few of the things your accountant should be discussing with you during your tax year end and on an on going basis:
• Have the businesses accounts been prepared using UK generally accepted accounting principles?
• Have there been any changes in tax legislation affecting what the business claims for tax? For example: new capital allowances, disallowable proportion of car leases or the concessionary carry back of trade losses.
• Are the quality and consistency of the businesses accounting records meeting the expectations of HMRC?
• Are the expenses being claimed by the business purely business related? If so, can this be proved to HMRC?
• Have any estimates been used in the construction of the businesses accounts? If so, have they been stress tested as being reasonable?
• Has a review been carried out for unclaimed capital allowances?
• Has work in progress been included within the businesses year end accounts?
• Have margin and expense fluctuations being investigated and explained?
• Have internal controls been considered and stress tested? This is particularly important for cash based businesses.
• Has the business been registered for VAT? If so, is the business using the most tax efficient VAT scheme?
These are just a few of the issues your accountant should be discussing with you.
If you would like to talk to us about your business, feel free to call us now on 0121 270 6305.
About Us
Helping our clients overcome the challenges of the modern business and taxation environment is core to our strategy at Blossom Stream Limited.
Focusing our efforts on the needs of our clients we have the experience and know how to help your organisation grow, sustain and succeed.
Our service offering spans the traditional work of Accountants through to the new. Whether it be supporting you through the tax and accounts compliance minefield, saving you money on your tax bill, planning your tax future or improving your reporting framework, we have the qualified experience to deliver you peace of mind. In addition, we can bring our wider industry experience to the aid of your business, providing consultancy and support on areas such as IT, internet strategy, business planning, marketing, recruitment, outsourcing, performance management and telecommunications.
The founder and Managing Director of Blossom Stream Limited, Colin Davenport FCCA, qualified in 2000 with a City Centre top twenty Chartered Practice. Having trained and qualified serving the owner managed business community of Birmingham and the West Midlands Colin moved into industry. Here he worked in various finance roles including Financial Controller, operating in the UK, Central and Eastern Europe. His sector experience includes Construction, IT, Telecommunications, Recruitment and Manufacturing. Now living in Solihull with his young family, Colin heads our practice.
If you would like a Free initial consultation with Colin please don’t hesitate to arrange an appointment. Colin can meet you at your business premises or ours; it’s totally up to you.
Call now on 0121 270 6305 or email colin.davenport@blossom-stream.co.uk, alternatively click here to leave your details and Colin will contact you directly.
Welcome
Welcome to Blossom Stream Limited Chartered Certified Accountants and Business Advisors.
We are Accountants based in Birmingham.
Our experience spans a range of sectors and business sizes, from serving the owner managed business community of Birmingham, Solihull and the West Midlands through to working in the blue chip and fortune 500 arena. We have the qualified experience and know how to support our client base through the challenges of today’s business and taxation environment.
To find our more read our about us section.
For a free consultation to discuss your needs please don’t hesitate to contact us on +44 (121) 270 6305 or contact us here to arrange a call back or appointment at a time to suit you.
Tax planning ideas
Is the legal structure of your business the most tax efficient for your circumstances? For example trading as a Limited company will allow you to pay shareholders dividends, reducing your national insurance costs and potentially your tax bill.
If your are a sole trader have your considered becoming a partnership, perhaps making your spouse or civil partner an existing employee. In this instance you could then share the profits to tax with your new partner, potentially reducing your national insurance costs and tax bill. In addition this should minimize your exposure to capital gains tax when you come to sell the business.
Do you have family members or friends who help you out in your business? If they are not utilising their existing personal allowances, consider paying them, this will reduce your taxable profits and likely your tax bill.
If you are a new business, have your claimed all possible tax deductible expenses? In some cases it is possible to go back as far as seven years in claiming pre trading expenditure.
If you are claiming capital allowances that are wasting personal allowances consider reducing your capital allowances claim.
If possible, time your capital expenditure purchases to make maximum use of your available capital allowances.
Are you using the most cost and cashflow effective VAT regime for your business? For example the cash accounting, flat rate, annual accounting or standard schemes.
If you have made a loss, have you carried back the loss to offset against profits or incomes made in previous years?
Have you considered your inheritance tax position? Making a will and dividing your estate so as to utilise the nil rate band, transferring the remainder to your spouse or civil partner. In addition, are you utilising your annual gifts of up to £3000 per tax year which become free of inheritance tax in any event.
These are just a few of the vast array of tax planning measures which are available to you as a taxpayer. For a free consultation as to how we could help you please do not hesitate to contact us to organise an appointment.
Please be aware all of the suggestions made above are purely illustrative. The possibility for their implementation and effectiveness will depend on your individual circumstances.
Some of these measures could have now been made ineffective by new regulations.
You should always consult a qualified accountant before pursing a tax planning strategy.
Resources
Feel free to browse our list of useful resources:
Income tax rates and taxable income table
Capital gain tax rates and annual exemptions
Taxation
Navigating the minefield of taxation legislation has never been harder. The legislative programme of recent years having been more active than most. Let us help you find the safest and most efficient path with our qualified expertise.
Helping you save money on your tax bill is our passion.
We can produce and file all your returns as necessary with HMRC, including Corporation Tax, Self Assessment and VAT returns.
In addition we can help you find the most effective structure and approach to achieve the lowest tax bill possible. Planning your tax affairs over the longer term is critical to achieving the best results with the taxman.
For a free initial consultation call us on 0121 270 6305 or contact us here.
