TAX SAVING TIPS – POINTS TO CONSIDER BEFORE YOUR COMPANY’S YEAR-END
Your Tax Shop, based in Ashton-under-Lyne, would like to introduce some tax saving tips for you to consider about your company before your next financial year-end.
There are various ways in which Your Tax Shop can help you to reduce your tax liability. These tax saving tips can be considered at any time however are best to be introduced before your next financial year-end comes to an end. Is your end of year fast approaching? Now’s the time to get in touch with Your Tax Shop for us to advise you how to save money and make effective tax savings by explaining the following points in detail:
Personal allowance – Each director has their own Personal Allowance whereby you are entitled to receive an amount of money which is free from taxation. Your Tax Shop advises that your Personal Allowance should be utilised to it’s full potential each tax year, before voting dividends is taken into consideration.
Timing of dividends – You may save tax by delaying drawing down your company’s profits until the next financial year, especially if you are expected to reach/have exceeded the £2,000 tax-free allowance or higher rate (taxable income of £37,501 and above).
Consider shareholdings – Your Tax Shop may also be able to help if you are considering transferring some of your company’s shares to a spouse, partner or other third party. You may benefit from using your other half’s tax allowance, especially if they have no other or low sources of income.
Over declaring dividends – Your Tax Shop advises that you make sure you only declare dividends when there are sufficient profits in the company to do so. Over declaring dividends can build up and may result in you paying more tax.
Pension contributions – If your company has a large profit reserve or significant increase in profitability, depending on your circumstances, Your Tax Shop advises for you to consider making company pension contributions instead of paying a hefty tax bill on voting all your company’s profits as a large dividend.
Charitable donations – Any charitable donations made to UK registered charities are considered as a tax-deductible business expense. Your Tax Shop advises that donations are deductible from your company’s total profits in the year in which the donations are made, reducing your profit before paying tax.
Tax efficient investments – Your Tax Shop prides itself in being a ‘one-stop shop’ for all your financial needs, which is why we offer in-house financial advice to discuss any tax planning and advice.
As well as preparing calculations and finalising your financial records, Your Tax Shop is renowned for stepping away from the typical accountancy stereotypes of being daunting and boring, by introducing new, innovative ways of caring for our clients and offering them simple, easy-to-understand business advice. We take great delight in offering an exceptional level of client care and are always on hand to help as your business flourishes and grows!
Get in touch today on 0161 339 5689 or firstname.lastname@example.org and see how Your Tax Shop, a multi-award-winning accountancy practice based in the heart of Ashton-under-Lyne, can help you and your business!