Minimising business tax

Minimising business tax

The dates chosen for starting or ending a business and for its accounting year end can make an important difference to the tax position and cash flow. Similarly, the timing of important transactions or purchases of capital equipment can have a significant effect. It pays to consult a Demacks. Chartered Accountant before committing yourself to a decision on timing, since you may be able to save tax or delay the payment of tax.

Most expenses of running a business are tax deductible but there are exceptions. A Demacks. Chartered Accountant can help to ensure that all legally available tax allowances have been claimed and also to achieve maximum benefit from the timing of capital allowance claims.

The tax implications should always be considered when investing in new equipment, buying a new car or undertaking any other major expenditure. Depending on circumstances, the best approach might be outright purchase, loan finance, hire purchase or leasing contract.

Dividing a company's operations into subsidiary companies or branches may provide tax advantages, as may the formation of a company by a sole trader whose business is expanding rapidly.

Trading or setting up overseas brings its own problems which can sometimes be extremely complex. To assess the tax advantages and disadvantages of overseas operations, you need to get expert advice.

Agreeing tax liabilities

Filling in tax forms can be complicated. Whatever the tax assessment involved - income tax, corporation tax, VAT, etc, a Demacks. Chartered Accountant can help to collate the necessary information and prepare the return on your behalf.

Where there is a dispute over a tax liability, a Demacks. Chartered Accountant can handle the negotiations with the HMRC on your behalf, even to the extent of appealing to the Commissioners if necessary.

Some businesses have trouble sorting out transactions which are VAT-able and those which are exempt or zero-rated. A Demacks. Chartered Accountant can help you to understand the rules governing VAT and also advise on the type of invoicing and bookkeeping required for Customs & Excise purposes.
A tax liability may depend on the taxable value of a benefit received or an asset transferred. In such cases, the professional opinion of a Demacks. Chartered Accountant can help you to agree a value with the tax authorities.

If too much tax has been paid in the past, it may be reclaimed in certain circumstances. Typical examples of overpayments include a non-taxpayer?s investment income being taxed at source, incorrect PAYE coding or the omission of allowable expenses from a tax return.

Individuals must now make their own assessment regarding personal taxation. A Demacks. Chartered Accountant can help you to understand income tax rules and make sure you are fully aware of the implementation timetable.