With the 5th April tax year end coming thick and fast. NOW is the time to talk to your accountant about how best to legitimately optimise your tax situation for your sole trader business.
I say “Now” because you have just about enough time and options still available to you before 5th April to reduce the current year’s tax cost. These actions could be in the form of:
1) Deciding to invest in capital equipment purchases such as tools, vehicles, a new computer, iPad or other assets for your business. Certain assets can qualify for Capital allowances which means you will pay less tax because these are investments back into your business – your Accountant can advise which ones qualify
2) If you’re a landlord, it might be time to carry out those repairs to your property once you have an idea of how much tax you’re likely to pay – it’s better to reinvest £1,000 in your property rather than pay that £1,000 to the tax man surely?
3) Decide on whether to claim business mileage or Actual Costs of running your vehicle for business travel – once you decide on one method you must stick to it for the duration you own that vehicle.
4) Budgeting wisely for the tax that is going to be due – don’t forget the NI payments also which are now included in your year end calculation. Your Accountant can also advise whether there are options for you to pay your tax using a payment plan with HMRC
Call LeeP Accountants now for more guidance and practical advice on how to look after your business finances. 01733 699033 or email us at [email protected]