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Five Ways to Reduce Small Business Taxes

If you want to prevent the cost of taxes from impacting your company’s bottom line you’re in luck, as this week Axis Telecoms reveals five ways to reduce small business taxes.

Turning Our Attention to Taxes

An independent telecoms and energy provider to SMEs across the length and breadth of the UK, Axis Telecoms are always on the lookout for the best deals for you, to help you save money.

Our quest to help you keep your firm’s bottom line in check has never stopped there. We also strive to deliver tips you can use to reduce your business expenses. This is why this week we want to turn our attention to the subject of taxes; a drain on any small company’s profit margins.

Use These Five Tips to Cut the Cost of Taxes

Taxes may seem like an unsurmountable hill to climb, but it’s possible to cut them and save money, using the following five tips from Axis Telecoms…

1)      Take Advantage of the Annual Investment Allowance: Every year the government allots a business a 100% tax allowance for tool and equipment used for your company. This is the Annual Investment Allowance, and at the moment sits at £500,000 but will go back down to the standard £25,000 at the end of 2015. Claim on it to reduce the amount of tax you are required to pay.

2)      Hire an Accountant: If you don’t already have one in the office, hire an accountant. Yes, it will cost you money, but you’ll more than make it back through the amount of tricks they’ll know to help you reduce the amount your SME has to pay in taxes.

3)      Deduct Business Expenses: One of the things that the accountant will undoubtedly tell you, is that there are certain business expenses that you can deduct from your tax. Business travel and the cost of a mobile phone, for example, can both be deducted, and reduce the amount of tax you are liable to pay.

4)      Use a Salary Sacrifice Scheme: You can use a scheme like this to pay for employee childcare from their salary at a rate of £243 per month tax free. It incurs no Employers National Insurance Tax, which will cut down the amount you’re due to pay.

5)      File Your Tax Return on Time: Whatever you do, you absolutely must file your company’s tax return on time. If you don’t, you’ll have an automatic charge slapped on you, which will increase, rather than reduce, the tax you’re due to pay.

The Government Likes Small Businesses

The government likes small businesses. You and businesses like you are good for the economy. Keep this in mind when it’s time to do the taxes, and you’ll soon see there’s always a way to reduce the amount you are liable to pay in taxes, and protect your company’s bottom line.