If you run a business, then you will know how important it is to make sure that it is as tax-efficient as possible. You need to find legitimate ways to reduce your bill, while also finding ways to expand your margins. If you follow this guide, you’ll find that it’s easier than ever to do just that.
Understand the Taxes You Pay
One of the first things you need to do is understand the taxes you need to pay. You also need to make sure that you aren’t paying too much as well. Getting accounting advice here is a generally good idea, as this is a good way for you to find out what you should be paying and why. As a general rule, the taxes you pay will depend on the type of business you run. If you run a partnership, then you may find that you end up paying different taxes to someone who is working in a limited company. The company itself may be a different legal entity from yourself, and for this reason, you will pay corporation tax on the profits you make. If you need help with your taxes, then it’s a good idea for you to invest in tax software, as this will help you to find out what you need to know with ease. Although paying someone, like an accountant, is an expense, you should take note that you will probably end up saving in the long run. After all, they can help you to cut down on the tax you pay, and they can also help you to claim for basic costs, like stationery, which you might not have thought much about before.
Offset your Losses
If your company is making a loss in a given tax year, such as from trading or even selling assets, then you may be able to claim some relief here. You can do this with your company, or you can do it through your self-assessment return. This is especially the case if you are a sole trader. If you want, you can even carry your losses back to the profits of the year before, but you do have to make sure that they were in the same trade. Of course, if this is confusing, then you can use software to try and guide you through everything, and you can also make sure that you are not missing out as a result of not knowing what you can claim for and what you cannot.
Agree on Terms
When buying things from suppliers, you need to make sure that you do it at the end of the quarter. You can also do this after the VAT return period. If you do this, then you can reduce your VAT bill, which will help you a lot. Remember that the flat rate scheme for companies will give you a lower turnover, and this can result in you paying a lower percentage overall. Small things like this can make a really big difference, so keep that in mind.
