June 2016 Blog from John Robson CIMA Member in Practice

Tax Tips

Use Finance to fund Major Investments.

Businesses should consider using external finance providers when seeking funding for any major capital expenditure projects. Specialist lenders can secure competitive rates and manage each transaction carefully from start to finish. It may be more tax efficient to lease an asset than to purchase.

Annual Investment Allowance.

Capital expenditure of up to £200K is fully tax allowable this year so it is a good time to be thinking of investing in new capital assets for your business.

VAT Flat Rate Scheme.

This allows businesses of up to £230,000 sales to benefit from a single rate of vat which applies to the gross turnover. VAT rates depend on the business sector but are less than the full rate in all cases.

Claim for Expenses.

Claim all direct business expenses that are exclusively for business use. Keep a log of all mileage used for the business and you can claim 45p per mile.

Introduce tax free benefits.

Childcare vouchers provided to employees can save both employer and employee tax. The cycle to work scheme can save up to 25% of the cost of a new bike!

Plan Ahead

Businesses should always plan ahead and set aside extra money when tax deadlines approach. But in the event of being taken by surprise businesses may wish to consider applying for short term finance to cover the shortfall.

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