I pride myself on providing simple, straightforward advice that helps you save money on your tax.
Here are my top ten tips on how to make sure you are claiming everything you should be.
1: If your spouse earns less than £11,500 per year (correct as at April 17) and helps out in your business, pay them a wage to reduce your taxable profits.
2: Meet with your accountant to plan your tax before year end tax to save as much tax as possible before it’s too late.
3: If you own a business and you are paying higher rate tax and your spouse helps in the business and is a lower rate tax payer, consider bringing them into the business as a partner. If you operate a limited company you can gift them shares and reduce the tax you pay.
4: Consider whether you have the most tax efficient structure for your business. If you are self employed and making around £20,000 per year or more, you may be better off running a limited company structure.
5: If you work from home, make sure you claim for using your home as your office. You can claim a proportion of all items including mortgage interest, electricity, insurance and water rates.
6: You don’t need a receipt to claim an expense against business profits.
7: If you have a limited company make sure you extract profits in the most tax efficient way. For example you can use dividends to avoid excessive National Insurance charges.
8: If you have people working for you who are self employed make sure the HMRC classes them as such. The authorities may see them as your employees, which could be costly to your business.
9: Pension contributions are a tax efficient way of saving.
10: Do you claim business mileage costs through your business? HMRC have set rates for these starting at 45 pence per mile.