Plan your business profits for tax purposes

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Hi

A tax planning tip. See/speak to your accountant a month or so before your year end, preferably with your draft/projected accounts so that they can suggest ways of reducing your tax and/or extracting profits from your company in a tax efficient way.

You might save more tax than your accountant charges you in (tax deductible ) fees.

Regards
Keith
High Royd Business Services Limited
Small Business Specialists

HRBS Limited - Fixed Fee Accountants and Small Business Specialists
** NEW - Accounting and taxation tips at High Royd Business Services Limited **
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[essdeekay]

Unfortunately Keith most accountants don't give tax advice any longer for fear of breaking some rule or other.

Perhaps you could enlighten us?

Simon

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Unfortunately Keith most accountants don't give tax advice any longer for fear of breaking some rule or other.

Perhaps you could enlighten us?

Simon

Hi Simon,

As you pointed out, most accountants do not give free advice, presumably they think that they can earn more fees by being paid to sort out issues rather than giving general free tax planning advice to their clients.

Some quick examples are bringing expenditure forward into the current year accounts eg repairs, brochure/business card design/printing, new PC/monitor/printer (capital allowances at 50%), director's bonus provision [if payable within 9 months of end of accounting period - note NI may be payable on director's bonus].

Expenditure: For example if your year end is 31 July, bringing forward expenditure from 1 August to 31 July will bring the expenditure into the current year's accounts. This will clearly be more relevant for capital expenditure eg PC/mac/printer/server etc. Stock purchases are not relevant as stock on hand will be included as an asset in the accounts.

So if you need business card printing/equipment repairs, a new pc/printer/software etc , do it in your current accounting period as you will get the tax relief 12 months earlier.

Regards
Keith
High Royd Business Services Limited
Small Business Specialists

New website at Fixed Fee Accountants and Small Business Specialists - High Royd Business Services Limited
** NEW - Accounting and taxation tips at Fixed Fee Accountants and Small Business Specialists - High Royd Business Services Limited **
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