Tax Planning

Tax is an unfortunate certainty for us all – what we aim to do at C & M Services is to be proactive in helping you reduce the amount you pay.

Here are our current favourite top ten tips:

1. Use an accountant – they will understand how the current tax legislation works and how this applies to your specific business circumstances. They will advise on what and how much you can claim, keep you HMRC compliant and save you money.
2. Keep proper books and records – make sure they are up to date and accurate. This will protect you if you selected by HMRC for a random audit. Remember, you need to keep your records for six years.
3. Check your tax code – most clients simply accept that HMRC are correct but up to a quarter of all codes issued are incorrect. At C & M Services, we receive a copy of all our clients codes when they are issued. We check each one to ensure they are correct.
4. Making the most of your personal allowances – the personal allowance for 2009-10 is £6,475 and represents the amount that can be earned before tax is payable. Consider equalising any investment income with your husband/wife or bringing them into the business.
5. If you are working and aged 65 years or over, make sure you are getting the increased age allowance for the over 65s. You should be able to see this in your tax coding.
6. Offset trading losses against future years where we forecast that tax rates will be higher.
7. If you intend to buy capital equipment over £50k, buy it before 1^st/5^th April 2010 as this is when the temporary 40% first year allowance ends.
8. Make sure you claim for everything you can: business mileage, phone use, use of home as office – it all adds up!
9. Switch to the flat rate VAT scheme if your business has few costs and overheads.
10. If your spouse/other family member works in your business, remember to pay them a wage that will protect their state benefits and pension. For 2009-10, this level is £5,715

For more information on tax planning or any of our other services call Kath Docherty on 07743 767 687, or email info@candmservices.co.uk.