Pay less tax - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HUKD, you accept our cookie and privacy policy.
Get the HUKD app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit
Expired

Pay less tax

MANJ_007 Avatar
9y, 10m agoPosted 9 years, 10 months ago
Hi, was just wandering if any of you know how I can pay less tax. I have started trading as a LTD company and at the moment pay myself minimum wage and claim travel expenses. Are there any other expenses that I can claim to reduce tax liability? Cheers :thumbsup:
MANJ_007 Avatar
9y, 10m agoPosted 9 years, 10 months ago
Options

All Responses

(12) Jump to unreadPost an answer
Responses/page:
#1
MANJ_007
Hi, was just wandering if any of you know how I can pay less tax. I have started trading as a LTD company and at the moment pay myself minimum wage and claim travel expenses. Are there any other expenses that I can claim to reduce tax liability? Cheers :thumbsup:


If you are working at home I am sure you can offset some of your household bills, but there may be reasons not to do that as well. If you have an accountant they should be able to advise, and if you don't, the savings they could potentially make may pay for them anyway!
#2
to pay less income tax u get £5035 personal allowance relief per year
if you have

expenses ie solely for purpose of business you can take them and also
if you have any others then u can
il have to see what else u might be able to get back

[probably some losses
#3
Home phone, mobile phone, electricity, laptop/desktop, internet.

Car repairs, servicing.

Office supplies, paper, envelopes etc.

If your partner doesn't work then pay them as an employee upto the tax exempt limit.

The above depends if you work from home.

I am self employed and make my home my base, so claim back anything I vaguely use for work. This is all above board, my Dads an accountant.:)
#4
Thanks spudgen, what about if i dont have receipts can i just make it up or is that too dodgy? You say vaguely use for work, is there anything stopping me buying a 3 grand computer through the business or has it got to be reasonably priced goods?
#5
you need to have items which are solely for business use so the item
ie a pc you probably will be able to claim it back
#6
Cheers guys, rep coming you way
#7
I have no experience in business but I would imagine if you work from home basically everything you would find in a working enviroment you can claim tax back on.

From the PC you mentioned, to pens and paper, desk, chair, right down to light bulbs and toilet roll!!! Even bus tickets and train tickets (I think), or if you drive then get your receipts and claim the tax back as business use!!!

I amagine you could buy things like a large Plasma or LCD tv and claim tax back on that claiming it's for presentation purposes using slide shows via your PC.

Oh and yes, you really do need a receipt you just can't go making things up, and they prefer printed receipts too, they will accept written ones but they can be funny about them.
#8
roadie
you need to have items which are solely for business use so the item
ie a pc you probably will be able to claim it back


It does not have to be for sole business use, if it is not, you just claim a percentage. If you are working from home then you are unlikely to claim your household expenses are ALL business costs as you also live there - i.e. heating, home phone, internet, etc. Similarly for car expenses, it is likely you also use it a % of the time for personal use. If the percentages claimed are reasonable it won't trigger any suspitions, but if you claim 100% for a home-based business you risk being investigated.
#9
As Erics says I only claim a percentage of these bill s as work related. It helps to have receipts but remember the taxman doesn't investigate everybody, however if they do they may go through your accounts from years ago.
An example is my fuel expenses, I claim 80% for work. For my mobile phone 90%. For my Internet 30%.
If its reasonable they shouldn't bother you.
#10
Capital items like desktops (ie one off purchases) are covered differantly to consumable expenses (hotels, travel, leccy, phone etc).
You should be claiming back the proportion of cost that is pursuant to the business. IE if you use 50% of your mobile for business claim half the cost as spudgun says.

Receipts should ALWAYS be kept in case of an audit either by your own auditors or IR.

From there it's a case of reducing tax by having other expenses coming out of gross such as a Self Investment Personal Pension Scheme. Then use the usual IR35 relief, pay it as dividend and director income and share it to maximise allowances and minimise tax.
#11
beerman1
I amagine you could buy things like a large Plasma or LCD tv and claim tax back on that claiming it's for presentation purposes using slide shows via your PC.


That is certainly an excellent way to attract the tax inspectors interest and would not be a good start to a business :w00t:

Have worked from home for 12 years. Have always found them to be reasonable but my expenses are very stable. Just rise with normal inflations costs.

Good luck
#12
[SIZE=2]You could keep your remuneration through the profit and loss as low as possible and take payment via dividends if you are the sole share owner of the company - UK tax rate for dividends is lower than income tax, I believe. Although this then depends on how much profit your company is making and what corporation tax it is liable for - compare the tax rates and factor in personal allowance. Plus, if your company is making a loss, you can still be paid wages (as long as the actual cash is there!) whereas there are particular rules covering when you can and can't make dividend payments (ie, you have to have distributable profits).[/SIZE]

[SIZE=2]Remember that if you try to put too much through the company in the way of expenses and it is deemed to be a benefit in kind by HMRC, then you will have to declare it on a P11D annually and pay tax on the benefit in kind! I.e. you used to be able to have a work van and use it for personal use with a minimum P11D payment but now the rules have changed to be more in line with the taxibility of using work cars for personal use.[/SIZE]

[SIZE=2]Best to get some proper advice on how to organise things in the most tax efficient way.[/SIZE]
[SIZE=2][/SIZE]

Post an Answer

You don't need an account to leave a response. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!