The tax planning is necessary for the small business owner as it is the ultimate expenditure for all small business owners. In order to reduce tax expenditure, it is always recommended to keep the track of expenses of tax. So, to stay viable and profitable it’s crucial to control your tax expenditure.
These are the 10 best tips which your small business should execute for better results:
1. Dividing income with your partner:
The salary paid to the accountants in slough must be satisfied concerning the amount worked and also depending upon the type of work, they should be paid evenly depending on the hours they worked. This is the very first tip for overall taxes to be reduced.
2. Payment Smattering by Accountant in slough:
As an accountant in slough, it is recommended to pay dividends to your family colleague over the age of 18. The first sum of money paid to an individual is entirely tax-free.
3. Expenditures of home office:
As a small business owner if your work remotely the expenditure includes utilities, property taxes, infrastructures, rents, mortgage interest.
Expenditure concerning above x (Total Square Feet of Home / Square Feet of Home Office), for better results in tax expenditure always consult accountants in slough.
4. Automobile tax-free allowance:
If you own a car that is used for business purpose then your business should pay you to allowance for your automobile, there are many businesses and agencies which have rules and regulations in this regard they pay according to the KM driven for business purpose and the allowance paid by them is completely tax-free.
5. Expenditure on meal and entertainment by chartered accountants in slough:
Expenditure for entertaining your employees means taking them out for lunch or dinner or giving them parties that are 50% tax-free. Always keep a record of all these expenditures by telling accountants in slough or to the chartered accountants in slough.
6. Expenditure on promotions of business:
In this case, presenting a gift to your employees mostly the marketing items or campaigns for marketing, all comes under this category, so all these things used for the promotion of business are completely tax deductible by your small business.
7. Tax reduction:
Tax devaluation can be subtracted regarding capital holdings owned by your small business corporation. This can include the percentage of furniture and renovation 20%, software 100%, equipment used for manufacturing 25%-50%, computers 100%, buildings and infrastructures 6%.
So, in order for a tax reduction of your small business, you should always consult the accountant in slough.
8. Small business deduction:
Small business always receives a special tax reduction of almost 10%-20% depending upon the state and their policies.
9. Expenditure incurred for small business:
As long as the amount of the expense is acceptable and the purpose of incurring the expenditure was about your business, the expense should be tax-deductible.
10. Hiring an accountant:
Hiring a chartered accountant in slough is always best for managing the books of tax and all the things discussed above because they give with the best advice for tax reduction.