The most obvious tactic for paying less tax is to engage the services of a good accountant – and I’m not saying that because I run one of the best accountancy firms in Yorkshire!
I can’t stress enough what a positive effect a decent accountant will have on a business to make it more profitable and to ensure that the correct steps have been taken to mitigate any tax bills. I must stress that you should stay within the rules to pay less tax and keep more money for yourself.
I’ve already covered in previous blogs on the steps that can be taken to pay less tax for the self-employed and for the employed.
For those just starting out in business, and here at Yorkshire accountancy we have a marvellous track record in helping new businesses, I would heartily recommend that they go limited. The main reason for doing so is that this is the most tax efficient way for a business to operate.
Paying less tax with Yorkshire Accountancy
By using an accountancy firm you will be using their tax and accounts service particularly for your year-end accounts and there will also help you pay less tax, particularly on any investments you may have made.
In addition to their bookkeeping skills, most accountant also have the experience in dealing with issues about sending tax and investment and will be pleased to help you.
In the meantime, I’ve put together a few ideas which may be of assistance.
The biggest tax saving to be found is in capital gains tax allowance and that married couples and civil partners who own an asset jointly can effectively claim a double allowance.
Business owners, and landlords to, can claim an annual investment allowance on capital expenditure for items such as computers and tools. It goes without saying, this could be a major saving being made on an investment.
Using your ISA allowances for paying less tax
An effective way to save tax on your investments is to use your tax-free ISA allowance. These allowances change every year but around half of an allowable amount can be put into a cash ISA, which means you can get access to your money should you need it.
One of the most attractive things about using an ISA allowance is that you’re not eligible to pay capital gains tax on the profits made from shares held in an ISA.
An accountant will also highlight whether you should be using a spouse or partner’s taxable allowance if they aren’t already using it. If not, it makes sense to transfer savings and/or investments into their name, particularly if they pay tax at a lower rate than you do.
You can also use Gift Aid to make charitable donations can help reduce your tax bill, this is particularly effective if you are a higher rate taxpayer and you should be paying into a pension scheme from your gross pay before tax is charged.
As ever, independent financial advice should be sought before making any investment and the help and advice of an accountant may help in putting together a portfolio with a view to saving tax and making your investments so much more tax efficient.
If you are looking for a friendly no nonsense accounts firm for paying less tax, then contact Yorkshire Accountancy as we offer a full range of services including payroll and bookkeeping services, on 01482 845750 or visit us at Yorkshire Accountancy.
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