When it comes to tax planning, the biggest wins often come from the simplest actions. These “low-hanging fruit” strategies can help you optimise your tax position without complex restructuring or expensive advice.

Review this checklist and make sure you’re not leaving money on the table. Here is your 21 point plan.

1. Know Your Deadlines

Why: Late VAT returns, RTI submissions, and Self-Assessment filings attract penalties.
Quick Tip: Set calendar reminders or use accounting software alerts.

2. Keep Accurate Records

Why: Good bookkeeping helps you track profitability and cash flow.
Example: Use Xero to automate expense tracking. We can help you implement Xero!

3. Use Your Spouse’s Allowance

Why: Sharing income can reduce overall tax.
Example: Make your spouse a partner or shareholder to utilise their personal allowance.

4. Employ Family Members

Why: Legitimate wages are deductible.
Example: Children over 13 can do part-time admin work—pay reasonable wages and keep records.

5. Claim All Allowable Expenses

Why: Every pound claimed reduces taxable profit.
Example: Include home office costs, travel, marketing, subscriptions, relevant life insurance, and pre-trading expenses.

6. Use of Home as Office

Quick Tip: Claim a proportion of household costs or use HMRC’s simplified flat rate.

7. Telephone & Broadband

Example: Deduct the business-use percentage of your bills.

8. Motor Expenses

Quick Tip: Compare actual costs vs. HMRC mileage rate (45p per mile). If VAT-registered, reclaim VAT on mileage.

9. Electric Cars

Quick Tip: Tax savings on electric cars for individuals in the UK depend on whether you acquire the vehicle through your employer or as a self-employed person.

10. Staff Entertainment Allowance

Example: Up to £150 per head annually for staff events is tax-free.

11. Trivial Benefits

Example: Non-cash gifts up to £50 per occasion are tax-free (directors capped at £300/year).

12. Capital Gains Tax Allowance

Quick Tip: Use the annual exemption for disposals.

13. Pension Contributions

Example: Claim tax relief as appropriate, carrying forward any unused allowance you can.

14. ISA Allowances

Quick Tip: Utilise the annual tax-free savings/investments.

15. Annual Investment Allowance

Example: Deduct qualifying capital expenditure up to the threshold.

16. R&D Tax Credits

Quick Tip: Claim on qualifying innovation. We recommend speaking to a qualified specialist in the field.

17. Voluntary VAT Registration

Example: Boost credibility, reclaim VAT on expenses, and prepare for growth.

18. Flat Rate Scheme

Quick Tip: Simplify VAT accounting and potentially improve cash flow if expenses are low.

19. Cash Accounting Scheme

Example: Pay VAT only when customers pay you—ideal for businesses offering credit.

20. Trading Allowance

Quick Tip: Rules apply, but earn tax-free from a small side businesses. Based on gross income from casual trading or miscellaneous work without paying income tax or National Insurance. It is separate from and in addition to your personal allowance

21. Subscriptions & Professional Fees

Example: Claim relevant memberships and trade publications.

 

Contact MyController today for a personalised tax review and discover how much you could save.

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