10 ways to save tax with your company

If you’re not taking advantage of these 10 ways of improving your company’s tax efficiency you're missing a trick or two...or ten.

• Incorporate your business – generally speaking if your turnover is £20,000 or more you may benefit from operating via a limited company.
• Register for VAT – claim back the VAT included in your expenses or consider whether the Flat Rate VAT Scheme would be to your advantage.
• Review your remuneration package – structure this to include a mix of salary and benefits e.g. sacrifice salary in return for employer provided childcare vouchers.
• Consider paying your spouse or partner – any salary should be reasonable to reflect the work they perform.
• Claim all your allowable expenses – ensure you account for all business expenses and claim allowances available to reduce your taxable profit.
• Make use of all tax free benefits – an employee can receive a number perks without attracting tax or national insurance e.g. a mobile phone.
• Pay into a personal pension scheme – obtain tax relief on the contributions you make.
• Retain profits within your business – the level and timing of extracting profit may affect the amount of tax you pay.
• Utilise unused personal allowance and basic rate tax band – divide your income producing assets with your spouse or partner, but be careful of some tax anti avoidance measures.
• Prepare an exit strategy – review your options now and plan accordingly.

Reproduced by kind permission of Danbro, www.danbro.co.uk

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