Small businesses in London must be streamlined and profitable to survive. One of the key ways in which a business can become more profitable is to think about its outgoings, and try to reduce payments on all but the essentials. Looking at how much tax you pay is a part of this process. It can take a little time to work it all out with your accountant, but it is worth to become a better functioning business. Take a look at these examples and think about how they could affect your business, and discuss any ideas you have with your London accountant.
- Look at Allowances for Trade Bodies
There are often special allowances or dispensations for trade bodies and trade associations: things like uniform allowances. If you are with a trade body or a trade organisation keep in close touch and attend meetings and read updates. You could come across something that would make a difference to your tax bill.
- Don’t Do Your Accounts
By this we don’t mean stop reporting your taxes, but we do mean get someone else in to do it for you. Unless you are an accountant, it is likely you have greater expertise and interest in other areas of the business. When you do your own accounts you are taking time and money away from more important areas of the business for growth and development. Don’t think that you will be paying more and losing money – think of it as saving money, as your accountants in central London will identify ways you can save on your tax bill.
- Look at Your VAT
VAT is an area where many London businesses are losing out. Do you know for sure that you are paying the right amounts? Have you investigated the many schemes there are for simplifying and streamlining VAT, and paying less? It is worth exploring VAT schemes with your accountant.
- Communicate With Your Accountant
Above all, it is important that you talk to your accountant and make sure you are regularly updating them on your business, and asking them how they can do more to help you save on your tax. An accountant can become a trusted business adviser who can make sure you are doing the best for your business.
- Look at Working from Home
There are some tax savings you can make when you are self-employed in London and working from home. You can claim for a proportion of the running costs of your home when you use it as a place of business.