A lot of business owners are missing out on an opportunity to enhance their profit levels because they are paying more tax than is necessary. As we get close to entering 2019, reducing your tax burden should be high up on your to-do list. By doing this, you will have more money to invest in your company, and thus you will be able to take your business to the next level. With that being said, continue reading for some great business tax deduction tips.
Use of home as an office – Do you use your home as an office? Even if you merely raise monthly invoices or fill in expense claims from the comfort of your own home, you will be able to claim a modest amount.
Know your industry – Make sure you keep engaged with your trade association or body. You should read their newsletters and attend any events whenever possible. Let’s say you work on construction. You may be aware that you can deduct the likes of parts and machinery. Take a look at the HW Part Store to get an idea regarding the sort of supplies we mean. But did you know you could be entitled to some special discounts too? There are approved special allowances and dispensations for various sectors, and your trade union or body will enlighten you to this.
Telephone expenses – Claiming for telephone expenses can save an average small business around £100 per year. You can claim for mobile phones if the account is in your company’s name and the bill is paid by your business. You can also claim for your home telephone whenever a business call is made. You can claim for the Internet too if the account is in the company’s name and you do not use it extensively for private use.
Be organized – Efficient bookkeeping is of paramount importance. A lot of people push bookkeeping to the side, as they are busy with other things. But it is of the utmost importance that you have copies of everything, even if you seek outside assistance for this area of your business. Failure to do this could result in fines, and you could be losing out on money simply by not handling everything effectively.
Business mileage – Do you use your own vehicle for business travel? If so, you are able to claim an amount for every mile you travel.
Journey costs – Whether you are going on a business trip or you are making the journey to and from the office, there are many different costs that can be deductible. This includes mileage costs, as mentioned prior, as well as hotel bookings, meals, subsistence expenses, parking, tolls, congestion charges, and fares for taxis, buses, trains, and airplanes.
Hire an accountant – Last but not least, you should use the services of a top quality chartered accountant. By doing this, you can rest assured that you will not miss out on any tax breaks because your accountant will be knowledgeable about all of the deductions that are available to you. When looking for an accountant, you should find someone that offers a fixed fee accountancy service. This will make it much easier for you to manage your costs.