Tax Bill

5 Ways Your London Business Can Lower Its Tax Bill

London is an expensive place to live and to do business. And taxation is a necessity. But there are many ways you as a business, and as an individual, can lower your tax bills – and do it legally. Find out how lower tax bills can mean a more successful London business, and how to get your tax under control for maximum financial benefits.

  1. Claim the Correct Expenses

If you are self-employed then you are entitled to deduct eligible expenses from income before tax is taken away. Know what constitutes an expense, and whether you can record it on your tax return, and you can save money. If in doubt, and this is recommended, you should consult a professional accountant.

  1. Pay More Into Your Pension

Your pension fund is for you to use when you get older, and paying more into it now can result in you spending less money on tax while you are working. If you are employed and you have a workplace pension your employer takes your pension from your pay packet before the tax is deducted, leaving you with a lower taxable income. It is a good idea to look at how your pension can work better for you overall, and for this you may need advice from a financial professional such as one of the accountants central london provides.

  1. Get an Accountant

As we mention above, the best thing to happen to your tax bill could be the appointment of a qualified accountant. If you are not an accountant, and you have little interest in your tax issues, then leave it up to someone who knows what they are talking about. Often a professional accountant will be the only one able to get the full benefits you are entitled to in terms of tax and other financial issues.

  1. Understand VAT

VAT is a tricky business and many companies are losing out to VAT when they do not have to. Check to see if you are paying the right amount. Look at the Flat Rate Scheme and check if you are eligible and if it will make a positive difference.

  1. Make the Most of Staff Benefits

Tax-free benefits can lower the tax bill for you and for your employees. For instance, the cycle to work scheme, or childcare vouchers.

There are other ways to make sure you are paying the right amount of tax and no more than you need to. In order to make the most of all you are entitled to you need to keep accurate records and get professional advice when you need it.