Avanti Tax Accountants LIMITED COMPANY TAX TIPS E-BOOK
‘A unique combination of
modern services and traditional values, provided by a team of vibrant, colourful experts in their field’
Taking the ‘grey’ out of accountancy & business development…
The Avanti Vision... To be instrumental in helping UK businesses realise their full potential and thrive, through our proactive and innovative approach to business support and development.
“Come rain or shine The Avanti Group (UK) Ltd provides you a truly supportive system, helping make your future brighter."
Mission Statement... Our range of professional services, delivered by a team of friendly, vibrant individuals, empower business owners to achieve their goals by enabling them to get on with what they do best.
Who are Avanti?
A family firm established in 1999 as Tax Accountants.
Since then, to enable us to serve the total business requirements of our clients, we created The Avanti Group (UK) Ltd, comprising:
• Avanti Tax Accountants • Avanti Networking • Dataspeed Software •Avanti Tax Accountants Franchise With highly experienced Qualified Practicing Accountants, Tax Advisers and Directors with 16+ years of networking experience, we understand the importance of trust & integrity whilst being approachable, friendly and professional; adding value to your business!
Company Accounts
TWO TOP TIPS: 1. If you have not yet completed your accounts or the accompanying personal tax returns for April 16 and you have profits and positive balance sheet; then declare dividends (but not necessarily take them). You will have more available for next year & following the changes to the tax on dividends of 7.5% after the first ÂŁ5,000, you could save tax. 2. If you work from home declare up to ÂŁ208 per year for use of home costs.
Corporation Tax
Not all tips are about what you can claim – sometimes tips are about what you can’t claim, to protect you! TWO TOP TIPS: 1. Don’t forget to disallow Entertainment 2. Don’t forget to disallow training that gives you a new qualification or skill or allows you to offer a new service. This is classed as Capital not Expense
Bookkeeping
TWO TOP TIPS: 1. Use Xero Software – the automatic bank feed can save hours in data entry and gives you an up to date view of your business every day. 2. Keep a close eye on your invoices and ensure you review your debtors regularly and send statements regularly, to speed up cash-flow into the business
VAT
TWO TOP TIPS: 1. Your first VAT registration you can go back four years on qualifying capital equipment that you still retain and six months on services you still use. 2. EC Sales Returns are only allowed to run in line with the tax year, yet vat returns can be changed to run in line with your financial year.
Payroll
TWO TOP TIPS: 1. RTI filing for the month ending 5th must be filed by 19th, as automatic penalties are now issued. 2. Directors who do not have a contract of employment are not subject to National Minimum Wage regulations
CIS
TWO TOP TIPS: 1. Only materials are outside the tax bracket, all other expenses are subject to tax at the registration rate: • • •
Labour tax at eg 20% or 30% Materials excluded If subcontractor puts phone / mileage / fuel – they are liable to tax at the registered rate.
2. If, at the end of the year, the contractor is below the personal allowance threshold they will not have to pay any tax. Therefore any tax paid by contractors to HMRC out of the sub-contractors pay will be refundable
Personal Tax
TWO TOP TIPS: 1. If you rent a property personally, you can claim a proportion of the cost of your tax return preparation as an expense. 2. There are two reliefs available if you are married. Married Couple Allowance or Marriage Allowance. Make sure you claim the right one to save tax.
For proactive tax advice and more top tax tips contact us!
www.avantitaxaccountants.co.uk
01473 558866 enquiries@avantigroup.uk.com Note: - The information contained in this document is for general advice only at the time of print. You must obtain advice for your own specific circumstances