Starting a small or medium sized business can be tough, especially in industries where firms have to scramble to stay in the game along with the corporate giants that dominate the market space. However, if you just play your cards right, you might find such a venture your most lucrative and rewarding enterprise yet. All you need are the right tools and tips, like these important tax tips that you would hear from reputable accountants in Bristol.
You need to put some thought into structuring your business before you decide to jump into the small business arena because this will determine how much you will be paying in taxes and national insurance. Three of your main options include partnership, sole-trader, or limited company, each one guided by different tax rules.
On Claimable Expenses
Remember that UK regulations allow for only limited types of expenses to be claimed, so it’s important that you consult with dependable accountants like professionals from Wormald & Partners Chartered Accountants to know which is which. Moreover, you need to make sure that you comply with the terms of your particular tax regime.
What you pay your employees also affects their tax rate, according to Small Business Tax Planning, as mentioned in Harriman-house.com:
There are some tax free benefits that can be made available and these can make up a useful part of any pay and benefits package for employees. For example, an employee paying basic rate income tax can currently receive £55 per week in nursery care vouchers free of tax and NICs provided you get the arrangements right.
With today’s society now looking for innovative ways to help the environment, UK tax laws have adopted greener new tax relief regulations and allowances for those businesses operating with “quality Low Emission Cars”. There are even car models, particularly those that have been tested to have approximately zero CO2 emission, which could qualify for 100% tax deductibility.
You can learn more ways on how to save up on your business tax by hiring a dependable tax accountant for Bristol businesses. Solid tax arrangements could save you money so that you have more to spend on improving and expanding your business.
(Article Excerpt and Image from Top tax tips for small business owners,Harriman House Publishing)