If you are an accountant, you should pass on these tax tips to your prospective and existing clients to help them boost their cash flow and reduce their tax bills.
Operating from Home
You can save tax if you are running your business from your home. It is a deductible expense and includes mortgage interest, council tax, Insurance, landline, telephone water and electricity bills.
The Business Structure
To benefit from lower business rates, if you are a sole trader working from home, you should consider making your business a limited company. This way, you will have to pay a corporation tax which is currently 20% but is expected to drop down to 17% by 2020.
Claim for Expenses
There are a number of expenses which are deductible when it comes to calculating the tax. These include travel, lunch, banking fees, IT equipment etc. These can be written off as expenses when filing for taxes, which reduces your taxable amount by a good margin.
Hire an Accountant
While you can manage your taxes on your own, it can be a grueling task that can cost you a lot of time and money. Furthermore, making mistakes when filing your tax returns can lead to hefty penalties. Thus, it is advised that you take the services of an experienced accountant to save your time and money when it comes to handling your finances and filing your tax returns.
As a business, you should always plan ahead and should always keep some money aside when you are aware that the tax deadline is approaching. You should be organized and prepared for the tax process if you want to remain free from any penalties from the IRS