AS YOUR YEAR-END DATE APPROACHES FOR YOUR SOLE TRADER/PARTNERSHIP BUSINESS, THERE ARE CERTAIN STEPS YOU CAN TAKE TO REDUCE YOUR SELF-ASSESSMENT TAX BILL.
If you have made a profit, those profits may be subject to an Income Tax and National Insurance Contribution charge so please see below on how you may be able to reduce that tax bill.
BUSINESS EXPENDITURE BEFORE YEAR-END
The more business expenditure you incur, the less tax you will need to pay. If there are certain purchases the business is coming to make over the coming months, just before the year-end is the best time to do so.
You could consider the following;
- Office Supplies
- Staff Events up to £150.00 per head
- Software costs
- Mobile telephone
- Insurances
CAPITAL ALLOWANCES
The Annual Investment Allowance – tax relief for business equipment/capital expenditure – allows you to claim a 100% deduction against profits on said business expenditure. The current limit has been increased to £1,000,000 from 01 January 2019 therefore, if you are planning on purchasing new plant & machinery, a new commercial vehicle, new computer equipment, then just before the year-end would be the best time to do so.
STAFF BONUSES
If you are thinking of rewarding staff for good performance, then before the company’s year-end would be a great time to do so.
Please contact us to discuss any of the above points in further detail – you can call us on 01933 22994 or book a meeting with Paul here.