Managing tax affairs is one of the worst things about running a business. You have to put so much time into filing tax returns and all you get at the end of it is a big bill. But are you paying too much tax?
A lot of new business owners are paying more tax than they need to because they are not filing their taxes in the right way. The good news is, you can save yourself a lot of money if you make a couple of small changes. These are the best ways to save a lot of money on your business tax.
Get A Professional Tax Analysis
The first thing you should do is get a professional tax analysis carried out on your business. Hire a company like archimedia accountants and have them carry out a full audit of all of your tax affairs. They will soon be able to tell you whether you are paying too much and they can suggest ways for you to reduce your tax bill. They will also pick up on any mistakes that you are making on your tax returns so you can avoid any penalties. Business taxes can be very complicated and there are some tips and tricks that only the professionals will know, so a tax analysis can be invaluable.
Offer Benefits To Your Staff
Money spent on benefits for your employees is tax free but a lot of business owners don’t take advantage of this. Providing good benefits is a great way to reduce employee turnover and increase productivity, and you can make some big tax savings as well. Look into things like healthcare benefits, company vehicles or cycle to work schemes and you can cut your tax bill while also improving your business.
Claim All Available Tax Deductions
When you are filing your return, it’s important that you include every last expense. The more tax deductible items you can claim for, the less tax you will pay, so make sure that you are thorough. However, it’s important that you are honest with your deductions if you want to avoid an audit. If you start trying to claim for personal expenses, for example, somebody will pick up on it and you may end up with a big fine. You can increase the number of tax deductible items on your return by investing money back in the business. If you need to upgrade equipment or buy new software, do it now before you file your return so you can make more savings.
When you are trying to file your returns and you are working out what tax deductible items you can claim for, it’s a lot easier if you stay organized. Digging through a big pile of receipts will take a long time, but if you file things away as you go, you will make life a lot easier for yourself. Even if you have an accountant to manage your taxes for you, it’s still important to stay organized.
These simple changes will help you to save a lot of money on your tax bill and improve your business at the same time.