1. Claim against your profits for items you bought prior to starting your business but which you now use in your business e.g. mobile phone, laptop, software, stock, etc.
2. If you work at home remember to claim against your profits for the use of your home as office.
3. If you register as self employed part way through the tax year but were employed before that date you may be entitled to a tax refund on the PAYE paid so far.
4. If you are Vat registered it may be beneficial to switch to a Vat flat rate scheme.
5. If you are self employed consider transferring your business to a limited company – there are tax savings to be made on the way that you take your profit out of the business.
6. If you do have a limited company put your mobile phone in the name of the business and you can claim all the costs of the phone and not just business calls.
7. Again, if you do have a limited company set up a pension through the company and claim the costs of this against your profits.
8. Claim for mileage for your business trips at 45p / mile for the first 10,000 miles and 25p / mile thereafter. You can also claim 24p / mile if you use a motor bike or 20p / mile if you use a bicycle.
Don’t forget that a trip to the bank to put in takings is a business trip if made solely for that purpose!
9. If you are trading as a limited company take a minimum salary from the business and any remaining retained profit as dividends.
10. Get your accounts done by an accountant. Not only will they ensure that you have claimed for everything that you should have, they will also make sure that your accounts are filed on time so avoiding fines and penalties and of course the fees are tax deductible – so not as expensive as they seem!