The following Tax advice and tips have been prepared by Salford Chartered Accountants. We trust you find the article of benefit to you. We are committed to providing our clients a first-class accountancy and taxation service and saving them tax.

  1. Government Schemes and Initiatives: Understanding what schemes and initiative are available is a challenge. The good news is that we can help you through this minefield.  In most cases, we can obtain grants/fundings for new start-up businesses which offer a reduction on our accountancy fees in their first year of trading. (first set of accounts produced), please contact us for further details.
  2. Dividends: The amount you pay yourself from your business obviously has an impact on the amount of tax you pay.  In a limited company, you should receive a salary high enough to maintain your National Insurance Contributions record when using the dividend route as dividends are taxed at a lower rate than other kinds of income and do not attract a National Insurance liability. However, care needs to be taken so not to fall foul of Company Law, and ultimately HMRC.
  3. Pension Contributions: Pension contributions tend to be deductible expenses for Corporation Tax Purposes, and incur no immediate tax charge on the individual.
  4. Family Members: It may be sensible to utilise the personal allowance of family members who are able to carry out duties within your business. That way you can take advantage of their basic rate allowance.
  5. Be Organised: Please make sure you are claiming for everything you are entitled to by keeping copies of everything. A common reason for HMRC to disallow expense or VAT claims is a failure of the business to keep proper records.
  6. Company Car: In most cases, it is best to run your own vehicle and claim mileage using  HMRC authorised mileage rates as this will avoid large taxation charges on the use of company cars. We can review your situation and advise whether it’s more tax efficient to own the vehicle yourself or run it through your company.
  7. Claim Expenses:   As long as you only ever claim for things that have been genuinely incurred on business duties, there are savings to be made. You can put any mobile phone you have in the business name and all costs of the phone are deductible. If you work from home, you will be able to claim a deduction to cover part of your home running cost. Please contact us for further information if you need help with this.
  8. Take professional advice from a specialist Chartered Accountant: Tax is complicated and the correct action to take in any individual case will be affected by specific circumstances. We advise all businesses to go through their specific circumstances with a professional advisor before making any fundamental decisions. We recommend that any decisions relating to pensions or investments should be made in conjunction with a qualified, independent financial advisor.

If you want more tax saving tips please read an article at Which.co.uk called 30 ways to save on tax – By Ian Robinson & this article called 10 tax-saving ideas for small business owners – By Simon Cox

If you require any further information, please feel free to contact us.

Article Written by Mrs Y Meng: ACCA: Email; yang@salfordcharteredaccountants.co.uk
Salford Chartered Accountants
Technology House, 2 Lissadel Street
Salford M6 6AP: Telephone : 0161-278-2714

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