Search

Ltd company Tax Saving Tips

Updated: Aug 29, 2020

On profit 'Ltd company' pays corporation tax. Profit is equal to income minus expenses.

More expenses you show, the less profit to pay tax on.

Your company expenses can be paid in two ways;

1) Company Bank account & cash payment

2) Reimbursed expenses when you paid from your own pocket.


It is common for small companies owners to pay expenses from own pocket. Sometime not having the full knowledge of accounting rules, leaves owners in doubt if they can claim for the expenses they have incurred.


Below are few of following tips which can help you expand your knowledge and save tax

  • If you travel to your client, you can claim travel expenses either on actual incurred expenses or 45 pence per mile up to 10,000 miles in a year if you use your own car

  • Any donation made to register charity can be deducted as day to day ruining expense

  • You can also claim for accommodation while you are on business travel providing expenses are reasonable and not excessive.

  • Bookkeeping and accounting fees are also claimable expenses

  • You are allowed to claim up to £150.00 staff party expenses as long as majority of event expenses are staff related.

  • Any business equipment such as printer,Laptop etc. expenses can also be claimed

  • HMRC allows £4.00 per week as home office use expenses and you do not need to keep any paperwork for it

  • Eyesight test expenses can be claimed as long as you can provide evidence it is necessary for the work such as admin staff need to use computer on daily basis. Any eyesight test will be a allowable expense for admin staff.

  • Pension contribution is a allowable expense

  • Professional subscription is allowable expense for certain professional bodies

  • Mobile phone, broadband, landline which are solely used for business purpose, you can claim 100% as business expense. Whereas phone, broadband etc. are also used for personal purposes, you can claim proportion of it such as 50% as personal use and 50% as business use

  • Any Employee work related Training cost can be claimed as expenses

I hope you will find the above ltd company tax saving tips useful and If you have any question please do not hesitate to get in touch




24 views0 comments

Recent Posts

See All

HMRC delays late payment 5% charge

The payment deadline for self assessment was 31 January 2021 and It has been extended to 28th February 2021. Interest is charged from 1 February 2021 on any tax amounts outstanding. A 5% late paymen

 

S K Punia Accountant

 

 

We get to know you: We will learn about your business and understand the industry it operates in, ensuring we always meet your expectations and deliver the best accountancy services support

You have one point of Contact: As other firms you will no longer first go to call centers and account mangers, at S K Punia Accountant you will have personal accountant who will be your main point of contact at all times saving you time and hassle.

We take care of numbers: You will no longer need to worry about sorting out tax bills and financial compliance for your business- from now on, We will take care of it all for you, giving you peace of mind and saving time to utilize toward your business growth.

Great Advice: We will ensure you keep as much of your earnings in the most tax efficient ways as possible in accordance with HMRC requirements.

Market Leading accounting software: We will ensure you have access to market leading accounting software such as Xero, Sage or Quickbooks and will provide you training

Weekend & Evening availability: Most of our clients have side business and also employed. We provide weekend and evening appointments saving you time and money by not taking the time off from work.

Why  Chose S K Punia Accountants?

Mobile: 07809568192

Phone:  02081273963

   Email:     info@skaccountant.co.uk

  • S K Punia Accountant Facebook
  • LinkedIn S K Punia Accountant
  • S K Punia Accountant YouTube
  • Twitter