8 Useful Tips & Advice On Managing Your Taxes

1. Expenses
HMRC have recently updated the list of trade and professional organisations for directors and employees who receive a tax reduction for annual subscriptions. NI can also be avoided if the bills are directly paid by the employer

2. Autumn Statement
Unfortunately the capital gains tax exemption on homes will be less generous but the good news is that no NI will be payable to employees under 21 from April 6th and business rates will be increased and capped at 2% for 2014/15.

3. Cars
To make sure the director or employee is contributing to company car running costs continues to be taxed, it would useful to amend your car policy so that it counts only against the tax year in which it’s paid.

4. Corporation Tax
There is an option of asking the bank for a loan or HMRC for extended time to pay, but nevertheless you will still be required to pay interest. So the best solution would be to extend the company’s accounting period to cover 18 months as this will combine the good and bad trading periods and in the short term decrease the payable corporation tax.

5. Payments
You are allowed to ask HMRC to allocate a payment against whichever tax bill you like. But if it turns out to be not in your best interests, you can ask HMRC to reallocate the payments.

6. VAT
An optional fuel flat rate charge will be replaced by the existing scale charge from 1st February but it will work in the same way. But another option would be to reclaim VAT on all fuel and repay that which relates to non-business travel.

7. Profit Extraction
For 2014/15 draw enough profit as dividends to increase your income for the year, otherwise leave it in the company so that it can be taken when/if you choose to sell the business with the tax rate being 10% in this case.

8. HMRC
HMRC will be communicating with taxpayers directly via email this year and if you would like to take part, it would be suggested to set up a new and clean email account to avoid official messages becoming lost in the spam or junk mail folder.

Related Posts

No Comments Yet.

Leave a Comment

Sign up for our Newsletter

Sign up and get the latest information

Your Name

Your Email

Subscribe!