Happy New Tax Year! It’s a shame this kind of new year doesn’t come with fireworks and champagne at midnight, because it probably feels more deserved now than ever.
We sincerely hope you ended the last financial year on a high. But like many businesses, the Easter Bank Holiday may have been your first opportunity to exhale after a tense and busy few months.
If you’re reflecting on the last tax year and thinking “there must be something I can do to make the process that little bit less stressful next year”, then fear not. We’ve compiled 3 ways your business can save tax this year and still sail through your deadlines!
1. Use your accounting software for everything it can offer
In case you didn’t notice, we’re big fans of Xero. Now that MTD has nudged the nation to digitally submit their records, we’re finding our clients are turning into big fans too.
They’re learning that there’s more to their accounting software than just making sure they’re hitting deadlines on time.
There are literally hundreds of apps that integrate with Xero, designed to make life as a business owner easier. Apps like Receipt Bank and Expensify allow you to upload receipts and invoices instantly and track expenses on the go.
Having digital copies of everything means you can be sure you’re also claiming for everything. Because once it’s in the cloud, no expense can be lost or forgotten about.
2. Think about going VAT registered, even if you don’t have to
Businesses with a turnover of £85,000 have no option but to register for VAT. Whilst those under the threshold don’t have to be VAT registered, they can choose to be if they wish. It won’t be the best choice for every small business, but voluntary registration can be beneficial for some.
If you charge VAT on your products or services, you’re able to reclaim VAT that is charged to you by other businesses. As a side note, being a VAT registered business can also make you look like you’re a bigger business than you are, so may serve to give you the edge over your small business competitors.
3. Treat your company by treating your staff to tax-free benefits
There are host of tax-free company benefits you can be making use of it, whether you’re a company of 2 or 20. Here’s just a few that are tax-free for your staff, and tax deductible for you:
- Mobile Phones
- Christmas parties under £150 per head
- Hot drinks at work
- Childcare support
Employees nowadays are looking for work-life integration, and there are ways to offer value to staff that don’t come at a high cost to the company – why not make use of them!
Bonus tip: Build your support network
Three feels like a small number of tips, doesn’t it? We chose to start with just three, because we know that too many suggestions can be overwhelming and confusing.
Too many choices can overwhelm us, and we end up doing nothing. Which is often why our clients come to us! But we’re not just year-end accountants. We’re a part of our client’s support network, looking out for their best interests long-term. Afterall, friends you see only once on New Years Eve don’t know enough about your life to help you make the big picture decisions.
If this already feels like a lot of hard work, we’re always here to support you. Leave us to find the most effective ways to save you tax, so that it can be champagne and fireworks every new tax year.