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There are many ways of keeping your tax liability low, dependant on individual circumstances. Without fully evaluating your details there are no straight answers that will work for everyone. The list below is general principles that will assist you in reducing your tax liabilities, unfortunately we are not able to write all the allowances and steps a business can take as there are thousands of options available to each business. The key is knowing which ones are the best for your business and the field in which you operate in.
A qualified Accountant or Bookkeeper will know a lot about what your legal obligations are, in terms of taxation. A qualified Accountant or Bookkeeper will know legitimate ways to keep your tax liability to a minimum, generally through maximising allowance claims.
Always pay any tax you owe on time. Interest is charged on late payments on an annualised rate of 7.5%. HOWEVER, if you are going to go overdrawn at the bank by paying HMRC, particularly if you don’t have an authorised overdraft facility, then its cheaper to pay interest to HMRCH than it is to pay interest to your bank. (Save Money by getting Professional advice)
If you’re balancing payment (NOT PAYMENT ON ACCOUNT) for any given year is paid more than 28 days late, there will be a surcharge of 5% of the tax still owed at the 28th February. There will also be another 5% surcharge on sums still not paid by the 31 July
As with working tax credits, Generally speaking you can receive credits if your income is up to £50,000 (£66,000 if the child is under one year), it’s worth making a claim, even if your income slightly exceeds these figures. Are you claiming everything you are entitled to?
Total credit control is our comprehensive accounting package that allows you to maintain, monitor and manage your business finances on a monthly, Weekly or fortnightly basis. This comprehensive package starts from as little as £200.00 a month and comprises of:
End of year accounts
TAX & VAT Returns
Monthly, weekly or fortnightly bookkeeping
Monthly tax liability assessment.
CC Club membership (Please read CC Club for more details)
Leasing with HMRC on your behalf (Tax and VAT queries)
Self Employed (Sole traders, LTD, Directors and Partnerships)
Income from land and property
Capital Gains Tax
Keeping Your Tax Liability Low
Pay Tax On Time
Child Tax Credits