Tax-saving advice for SMEs, businesses, individuals, sole traders, partnerships and landlords
There are two foundations on which giving robust advice on saving tax depend: knowledge – and the creativity to exploit it.
Comprehensive Creative Advice
Here at Phoenix we have a deep, broad base of taxation knowledge built over many years and continually updated. We are also extremely creative (often innovative) in finding totally legal, compliant ways to save our clients significant amounts in reduced taxes across the board.
We work well with HMRC and are very relaxed about giving clients advice on saving tax. Sometimes there are quite simple measures, sometimes more complex arrangements need to be in place but you can rest assured we will explain everything to you very carefully and, where appropriate, set up and administer legal entities on your behalf.
Your situation is unique, in terms of your background, your current situation and your aspirations for the future, so we cannot cover every scenario on this website. Following, however, are a few pointers as to the lines on which you might start thinking.
An example for sole traders
Using a very straightforward case, let’s look purely at business use of the home environment. Most accountants will off-set £312 p.a. for this.
Did you know, however, you are perfectly within your rights to claim £1,800 p.a. if you know how to do it.
Couple this with tax savings you can make in several other areas you can often mitigate taxes altogether – including covering our fees!
An example for employees
A railway worker recently approached us as he wanted to investigate if he could reduce his income tax. By examining his subsistence allowance, his hours working out of the office and factoring in his use of his residence for occasional home-working, we reduced his tax for that year by almost £1,000. As HMRC allows us to retrospectively re-calculate taxes over four years, this employee ended up over £3,000 in credit. Our fees were £400.
If you use your own car for business mileage we can also use this to reduce your income tax by above the ‘usual’ Inland Revenue expenses rates.
Sole trader or limited company? Our tax advice.
The threshold to bear in mind here is if your annual profits exceed £15,000. If they do, we can save you money if you register as a limited company, even after the cost of preparing your additional accounts is factored in.
Meanwhile, if you’re a sole trader earning £20,000 profit a year our tax advice will reduce your income tax liability to nil. Tempting?... Talk to us.
VAT: Know your onions!
The threshold at which you must legally register to pay VAT is a turnover of £85,000 p.a. However, many businesses can be ‘split’ into sub-divisions to avoid having to charge VAT if that is beneficial to the company and its clients.
We can talk you through the options when you contact us.
Advice on saving tax on property
There are many, many ways to reduce various taxes by being canny with property ownership.
At its most basic our tax advice is to examine the relative situations of the owners. For example, if you are a husband and wife who jointly receive rental income on a property it is quite likely you can benefit by splitting ownership, particularly by factoring in your respective income tax allowances. HMRC has time limits for disclosures on such matters, which we can advise you on and manage for you.
Small self-administered scheme (SSAS)
The ‘SSAS’ is a pension scheme available to trading companies.
A SSAS can be used to help business owners and start-ups, by allowing access to pension funds prior to retirement, and providing a tax efficient structure for purchasing certain assets e.g. commercial property.
A SSAS can permit a loan to the sponsoring employer of up to 50 per cent of its value. Interest is payable at just one per cent over base rate (which you effectively pay to yourself).
A SSAS can also be used to invest in commercial property e.g. your company’s office, factory, warehouse. The SSAS can own and rent the commercial property to your own business at a commercially viable rent. This will reduce your company’s profits, and help grow your pension fund, all in a tax efficient manner.
If you’d like tax-saving advice on making the most of your pension, simply ring us and we’ll arrange to talk you through your various options.