Mention the word ‘tax’ to a business owner and you are guaranteed to receive some kind of reaction. Faces may become contorted, eyes may glaze over or you may hear verbal expressions of how frustrated people are with paying taxes. It is a natural reaction given that very few business owners will enjoy or be happy at the thought of having to pay taxes from their hard earned profits.
Their feelings and responses are understandable considering the long hours they have probably worked and the endless effort that they have had to put into the running of their business. As a business that commenced life as a family business Yorkshire Accountancy has a natural empathy with anyone running their own business. As such we like to encourage business owners to take the time to ‘think smartly and wisely’ about the management of their tax affairs.
It is safe to say ‘that many business owners are not fully aware of the tax deductions that can be claimed’. In the reality the paying of tax is a two way process where taxes can be either paid or reclaimed. We believe that educating people about taxes and tax planning can produce advantageous results for business owners.
Tax deductions can be claimed on anything that is a reasonable or necessary business expense. That is you can claim anything that you need to run your business. This could include items such as:-
- A home office
- Office supplies
- Office furniture
- Business mileage
- Travel expenses
- Internet services
There is absolutely no reason why your business should not claim any tax deductions that they are rightfully entitled to.
Business tax can be complicated and overwhelming. It is therefore always advisable to consult an accountant or specialist tax adviser in regards to the claiming of tax deductions. You will be surprised – how quickly the cost of employing an accountant or tax adviser can be recouped.
On a day-to-day basis Yorkshire Accountancy has contact with numerous business owners. As a result we have become acutely aware of the amazing job that business owners do to grow their business. Equally we are always surprised at the number of businesses that complain about paying taxes, yet do not take proactive steps in the management of their tax affairs.
Imagine having a smile on your face whenever conversations about taxes come up, or smiling when you receive a tax refund or imagine feeling calm and in control whenever you receive correspondence from Her Majesty’s Revenue and Customs. Being proactive about the management of business taxes will always work to the advantage of your business. Having an accurate balance sheet and tax submissions can be the difference between making a profit or sustaining a loss. Being wise about your taxes and taking the right approach can lead to your business receiving a much deserved tax refund. Claiming tax deductions should be second nature to every business.