UK Businesses often overpay tax as a result of missing out on legitimate tax deductions allowable in their business. Whilst we all prepare for the possibility of another lockdown or more government restrictions, these top 10 tax deductions could give your business some much needed relief:
- Use of Home as Office/Home Office – Working from home has become the norm very quickly for a lot of us and it doesn’t seem to be changing any time soon. These deductions can make a difference to your tax bill.
- Research & Development – An area of which McCreath Accountancy have 10+ years’ experience in delivering for clients. We constantly look for R&D opportunities for all our clients whilst the tax relief remains at an enhancement of 130% on top of your 100% deduction.
- Travel, Mileage & Subsistence – Since Accountancy began, the most common and quickest way to lose receipts is when they blow out the van door. Self-Assessment tax returns and annual accounts require these receipts in case of HMRC investigation, this is why we use technology to assist with this with ReceiptBank you can take a quick picture and never need to worry again.
- Pension Contributions – Pensions have always been a great tool for getting those tax deductions. The money stays in your pocket and is kept away for when you hit that magical retirement age. We work with Financial Advisers to ensure you get the best rates and returns on your investments and savings.
- Charitable Donations – Often forgotten but another great way of reducing your personal and corporate tax bills.
- Staff Entertainment/Non-Cash Rewards – A lot of these types of rewards are often given from the employers own pocket rather than the business to try to avoid any tax issues but these can often be another source of savings.
- Paid Personally/Personal Assets – This should be higher up the list in our eyes, but items paid for using your personal card or cash are very often forgotten about but adding these up over the year could land you a great saving, or in a limited company, reduce your directors loan account/dividends.
- School fees planning – This used to be a lot more popular than it is now, but school fees can be used to make a great saving for the company and you personally.
- Property – Buying a commercial property in your business can have a huge impact on your tax liabilities.
- Fixed Assets – Assets in business come in various shapes and sizes, these can often be missed especially in retail and manufacturing sectors.
Your accountant should be questioning you on the various types of expenses you have over the year to ensure you pay the right amount of tax, each year. Speak to us about maximising tax efficiency and having an effective process to include all expenses.