For small business owners, every penny counts. However, a report by Unbiased.co.uk has found that small and medium-sized enterprises (SMEs) are charged an average of £1,589 per year in unnecessary tax payments. Furthermore, the Small Business Tax Action Report found that companies throughout the UK are failing to use allowances, credits and tax relief to their benefit, thus losing out on numerous opportunities to save money.
So, how can you make sure you’re not overpaying? There are a number of ways. One of the most effective ways is to assess your business status. If your profits exceed the basic rate tax band, consider incorporating your business to save on income tax and national insurance contributions.
Additionally, claiming capital allowances will offer some tax relief. Similarly, the annual investment allowance should be claimed to save on equipment costs. There are a number of other approved credits, some of which incentivise energy-saving efforts, but finding all the cost-cutting tax allowances can be difficult for a small business owner.
Fortunately, there’s an easy way to ensure you’re getting all the tax credits you deserve. A Welling based accountancy firm, Bradleys Accountants, will run a completely free tax assessment event throughout June to help you understand your tax position and pinpoint where improvements can be made.
Bradleys launched the ‘Free Tax Health Check’ campaign to help businesses avoid tax fraud, albeit inadvertently, a crucial issue for individuals and organisations throughout the UK. Alan McCappin, Bradleys’ practice manager, said: “Taxation is complex and can be a nightmare for small businesses to understand; our Health Check will enable a qualified accountant to go over a local businesses’ accounts to ensure they are a) compliant within HMRC guidelines and b) that they are maximising any savings they can make.”
In just one half hour session, experienced accountants will review your business tax, VAT, personal tax and assist with your tax planning, absolutely free of charge. Additionally, Bradleys will provide you with their latest white paper outlining tax types and simple ways to manage your tax.
All you have to do to help Bradleys help you is to assemble copies of a few essential documents. To check your tax rate, Bradleys will ideally need to see your most recently submitted personal tax return, along with your last set of accounts produced, most recent payroll summary, a corporation tax return (if applicable), and the last four quarters of VAT returns, as well as their detail.
A simple and straightforward assessment will take place, where a trained member of staff will ask you some basic questions. In the end, you’ll be shown a projected tax saving and receive suggestions to avoid overpaying. Furthermore, you’ll be walked through new tax regulations, so you’ll have a clear idea of where you stand.
“Even if a business has been on top of their taxation in the past, new rules are introduced and with the best will in the world, who has time to plough through a 214-page VAT Guide? We are hoping that local businesses, especially the smaller ones which may not have the resources to look into this in depth themselves, will take advantage of our offer and make sure they are operating in the most tax efficient, compliant way,” Mr McCappin said.
Don’t miss this completely free opportunity to receive invaluable small business tax advice. The event runs until the end of June, so act now.