Tax Tips that actually help!
1) Keep a separate current account for your business! If all your business expenses & income are in one account, then it’s easier to manage and you will have fewer queries from your tax adviser!
2) If you are a marginal rate taxpayer & self-employed, try to lodge 25% of your fee income to a savings account. You will then have funds available when it comes to paying income tax at the end of October each year.
3) Do the business filing and record keeping as you go during the year. As well as having information all ready for your tax adviser, keeping business records up to date will help your business with efficiency.
4) If you are unsure about the tax consequences of a transaction, call your tax adviser before, not 9 months after the transaction has finished!
5) Although considering the tax implications of a business transaction is important in deciding whether to go ahead with the deal or not, you should also consider the commercial ‘pros & cons’ too.
6) Are you a PAYE worker claiming all possible tax reliefs? i.e. medical expenses deduction (including certain dental work), top-ups to your pension, service charges, rent paid relief, union subs etc
7) Self-employed taxpayers should keep receipts for all expenses incurred. Yes, even the small ones. You would be surprised how quickly they add up. You also need receipts to claim a tax deduction.
8) Don’t assume that your payroll department deducts the correct tax from you each month! Always check your pay-slip and look out for changes from month to month!
9) Check your ‘Certificate of Tax Credits & Standard Rate cut-off points’ each year to ensure you are getting all relief that you are entitled to!
10) File your Tax Return early! If you are due a refund, claim it now! Where you have previously met your tax obligations, you still have until 31 October to pay!