Leave nothing to chance
Posted on 20th November 2023 at 15:34
We are nearing the end of 2023.
Plan your finances before the start of 2024.
Reduce your tax bill by claiming all allowable tax reliefs, some examples:
1) Claim Employment Allowance. Do you know that Limited company with two directors, where both are paid above the secondary threshold can claim the allowance? You can save over £400 Employer’s NIC and over £4,000 in corporation tax if both directors are paid a salary at £12,570 each.
2) Involve your spouse in your business, but first have a discussion with your accountant to help you decide carefully based on what’s right for your own personal circumstances.
3) Make Employer's Pension Contributions from your LTD to your Private Pension and reduce your taxable company Profit.
4) Orginise a Christmas Event and claim up to £150 per head. You can take your spouse with you and claim up £300. As a limited company director, you are entitled to provide an annual event for yourself, any staff you employ, and your partner and reclaim the cost against the company, the cost per head must not exceed £150 including VAT, travel, and accommodation expense for the event when paid by the employer (your LTD)
5) Get yourself, other directors and staff a Gift up costing to £50. But for directors you have a cap. You can't receive trivial benefits worth more than £300 in a tax year.
6) If you have just set up your company, check for any expenses incurred for the business before setting up your LTD and claim pre-incorporation expenses. Sell your personal computer equipment to your LTD.
7) Claim use of home expense on a pro-rata basis for your utility bills for the room you use to work from home but don't dedicate the room 100% for business use to keep your Principal Private Residence (PPR), where your company is not renting an office.
8) Order uniform with your company logo! You need to wear clothes anyway so why not stamp your business Logo on your Jumper or Cardigan and claim a tax relief through your company.
9) Hire an Apprentice. Do you know that the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged under 19 and the employer can receive a government grant of additional payment of £1,000, depending on the apprentice you hire.
10) If you need a new car, consider buying a company electric vehicle and claim 100% First Year Allowance if purchased brand new, but discuss any pitfalls with your accountant.
11) Business journey - might be you need to meet with your Accountant and or Financial Advisor to discuss your corporate finances or you need to visit a client in another location not close to your office. Claim your associated, travel, accommodation, and food expenses. You can even claim alcoholic drinks if consumed with your meal.
You can set up for our LTD accounting fixed monthly fee £99 plus VAT to receive unlimited email and telephone support, to discuss your tax saving plan:
Tagged as: Finance Planning
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