Top tax tips for SMEs in 2018
Small to mid-size business enterprises often neglect to take advantage of all available tax breaks, resulting in higher than necessary tax bills for directors and employees. These actionable tax tips may help you save money on taxes and take full advantage of available tax benefits.
Tax tips for small business owners:
If your business is a limited company, you could be well advised to take out money in the form of salary and dividends, a professional tax adviser could also provide you with more tax-efficient strategies to maximise the income levels received from your business.
If your spouse works or helps out in your business, paying them a tax efficient salary helps ensure they qualify for the state pension later in life. Paying a salary of less than £162 weekly means your spouse won't need to make any contributions to National Insurance but will gain all associated benefits.
Investing in new business equipment, like a company van, computers, tools, etc, should be timed to meet the end of your business year. This way you will gain all the tax relief advantages sooner than if you purchase these items at the beginning of your business year.
Where your employees use their own car for company business, take full advantage of the current mileage rules. The current approved mileage allowance is 45p for the first 10,000 miles, then it drops to 25p per mile thereafter. If you don't pay the top rate for business mileage, then you should make sure your employees are aware that they can claim the difference as a deduction against their salary, which will cut their tax bills.
Tax-free benefits in kind can be valuable perks for staff, some of these include:
One mobile phone per employee
Providing a workplace nursery
Subsidised transport to and from work, which includes bus fares
Providing company cycles
Giving cash awards to employees participating in company suggestion schemes
Providing sports or recreation facilities
Seasonal parties and events can be subsided up to £150 per person annually
There are many more tax tips available for business owners, and seeking professional advice can be the best way forward for minimising taxes.
We are accountants and tax advisers in Seaford and Uckfield and cover the entire Sussex region. If you would like more information, please don't hesitate to get in touch.
To discuss your specific situation and see where you should be taking advantage of these tips get in touch with our Business Services Partner Robert who can discuss this with you:
Tel: 01825 763366
Swindells’ Inheritance Tax Seminar – 6th September
Please join us for our latest Inheritance Tax planning seminar Robin and Duncan will be in reflective mood, looking back at planning strategies that have over the last 10 years saved our clients millions in Inheritance Tax, and looking forward, strategies that we expect to be equally successful in the future.
How to plan for a successful small business exit
A survey by Securian has suggested that more than half of small business owners plan to leave their businesses within ten years, that but three-quarters of them have no plan in place to make a successful exit. This article will help you understand what an exit strategy is, why it’s important and how to begin to put one in place.
Sign up to receive our private content
straight to your inbox