Incorporate your business – generally speaking if your turnover is £20,000 or more you may benefit from operating via a limited company.
Register for VAT – claim back the VAT included in your expenses or consider whether the Flat Rate VAT Scheme would be to your advantage.
Review your remuneration package – structure this to include a mix of salary and benefits e.g. sacrifice salary in return for employer provided childcare vouchers.
Consider paying your spouse or partner – any salary should be reasonable to reflect the work they perform.
Claim all your allowable expenses – ensure you account for all business expenses and claim allowances available to reduce your taxable profit.
Make use of all tax free benefits – an employee can receive a number perks without attracting tax or national insurance e.g. a mobile phone.
Pay into a personal pension scheme – obtain tax relief on the contributions you make.
Retain profits within your business – the level and timing of extracting profit may affect the amount of tax you pay.
Utilise unused personal allowance and basic rate tax band – divide your income producing assets with your spouse or partner, but be careful of some tax anti avoidance measures.
Prepare an exit strategy – review your options now and plan accordingly.

If you want some free advice on any of the above tips, feel free to contact one of our accountants on 0800 731 3178, or email enquiries@danbro.co.uk

Regards,

Neil Ormesher

http://www.danbro.co.uk/

As a regulated firm of chartered management accountants specialising in contractor services, we aim to maximise your tax efficiently, minimise your administration and give you a hassle free way to receive your earnings. For Free Advice Call - 0800 731 3178

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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