Top 3 tips for limited companies in the UK

Small businesses are the wheel of economy
they are always evolving and innovating despite the important role, they are
still subjected to heavy expenses threatening the flourishing of their business.
At the end of each tax year, they have to pay huge and heavy amounts of money
from their budgets that might be costly and here are the best 3 ways to reduce
that amount and make great savings.

1)  Pay small tax free salary and dividends

Surround your business with employees who
care for the flourishment of the company who would preferably agree upon a
salary sacrifice scheme. This method saves tax fees for both the company and
the employees while the workers give up the upon an amount of money from their salary
and in exchange, they get paid benefits instead such as childcare vouchers, free
mobile phones or provided pension savings and advice. Salary sacrifices are paid
differently but also calculated differently so a choice of the service and
products to be exchanged must be interesting to the employees.

The way the business owner pays himself also
plays a role that is why it is important to make sure to effectively calculate
the amount to get for themselves and the amounts to be transferred into dividends.
The business owner can also reduce the taxes by adding and using company acquisitions
such as company car.

2)  Employingfamilymembersor personal allowance

Employing family members who are able and
would be willing to take some tasks within the company thanks to the personal
allowance tax-free. This tip is highly recommended and effective in family businesses
where it is expected that the next company head will be a family member.

3)  Workingfromhomedeductions.

In many cases, an office can be replaced by
an office located at home this option is good in case one has enough space that
can be modelled into an office, it is also possible to use office spaces provided
in some houses. Some companies
consider the amount of tax to be subtracted from a business settled at home
very low but in reality, it constitutes a high amount at the end of the tax year
and the amounts allowed by the HMRC vary and they are usually over £2 per week.

The one-thing companies must take into
consideration when opting for tax deductions by working from home is that the
location can be inspected any moment by all the competent authorities mainly the
HMRC and other services related to the field of the in order to ensure that legal and quality
standards are taken into consideration.

Some home costs that are contributing to
the business directly or indirectly may be taken into consideration and a
percentage of the deduction can be attributed to them. The deductions can vary
from water, electricity and heating to phone costs or even household repairs
& maintenance.

These are the most important instructions in
order to reduce the burden of taxes each year and help your business to go to
the next level.

Witten by GM professional accountants in Ilford.