Could you conserve your profits more effectively?
What makes us get up each and every morning?
We all want to make a difference, provide a service to our customers and staff, and keep the bank manager relatively happy.
Our accountants primary focus is on compliance – ensuring we meet the numerous deadlines to avoid ever more serious fines and penalties. This is so important but NOT the reason we get up each morning and certainly NOT the reason we went into business in the first place. Surely our answer is to make some money?
Like it or not, despite the most moralistic of attitudes, without money we can do nothing. The “system” appears to work against us here. Every Budget heralds new and punitive tax increases, all seemingly designed to reduce how much we actually make from our efforts.
The changes to dividend taxation will be felt by many in January and July 2018; self assessment is a cruel reminder of the realities of life! Then we learn of the further increases to pension auto enrolment rates. From 6 April 2018 employer contribution rates increase by 100% to 2% and then by a further third in April 2019. Of course it is right to help our employees but the cost burden to the employer continues to rise.
Tax planning appears to have gained a degree of notoriety in the media; we support the tax authorities efforts to bring to book those who seek to beat the tax system by unscrupulous means but the reality is that the tax code makes ample provision for us all to make a difference.
For example, it is possible to claim 230% of certain qualifying expenditure. This is a claim the vast majority of companies ignore or simply do not know about. Most of us do know about the tax benefits of making approved (HMRC term referring to contribution and fund size maxima and benefit structure and rules) pension contributions but how many business owners know about unapproved pensions?
A thorough audit of how you currently conserve or shelter your profits will reveal the scope of the opportunities available. If you want to conserve more of your profits, then don't hesitate, get in touch today for a no obligations conversation.