Wednesday, 23 April 2014

Top tips and tricks for business savings...

Moving forward we'll be providng free advice for your businesses from local experts to help you and your business. This month we welcome DSG’s Andrew Moss who talks about some quick tips and tricks you can adopt in your business to make savings and minimise the tax you have to pay.

Tax Free Allowances

Things to consider:

Are you claiming expenses for use of your home for business purposes?  This is an easy one to overlook.

Have you considered paying your spouse a salary from your business for the work they undertake?  This can ensure both you and your spouse are utilising your tax free allowance and basic rate bands each year. 

Don’t forget to claim mileage allowance for the business miles you travel.  HMRC have approved mileage rates, this is 45p for the first 10,000 miles in your own car, that’s £4,500 tax free in your pocket and 25p thereafter.  If you’re carrying a passenger, you can also claim an additional 5p per mile per passenger.

Keep an eye on the pennies

People and property are typically the largest expense for any business, make sure you review costs where you can.  Look at your energy costs, should you switch providers and keep a look out for better deals.  Remember, apathy costs money.

For facilities such as invoice financing, compare what you’re paying with what other providers are offering, one of our clients has managed to save 60% by renegotiating terms. 

Manage expectations

Auto enrolment will have an impact on all businesses that employ individuals, the cost to the business will be 1% rising to 3% over the coming years.  You should consider this additional cost when thinking about staff pay rises to manage expectations.  You can’t do everything!

Max out on your dividends

If you’re a shareholder, ensure you’re taking the correct salary and dividend split so that you and your company minimise the tax and national insurance payable.  Building a “tax free” pot in the company through undrawn dividends can benefit in the good years when more cash is available to draw.

Nice Incentives

There are currently N.I or national insurance savings for new businesses on the first 10 employees, with no employers national insurance to pay for the first 12 months of operation.

For almost every employer from 6th April 2014 you need to claim your employment allowance of up to £2,000 through reducing the amount you actually pay over to HMRC. 

It’s your money

Growth vouchers are now available – You can apply for a growth voucher of up to £2,000 of match funding.  This programme is focusing on small businesses seeking business advice.   You need to have been trading for a least one year and have 49 employees or less and not paid for strategic business advice in the last three years.  Successful applicants are selected at random. 

If you would like any further information on any of the above please contact Andrew Moss on : 0151 243 1247 or email   

About us

At DSG chartered accountants everything we do is designed to meet your needs. Whether this is growing your business, protecting your family wealth or tax planning and compliance, we are there to help you achieve your goals whilst taking the compliance burden away, so you can concentrate on what you do best.

By combining excellent technical expertise and innovative business thinking we are able to provide you with commercial solutions that work in the real world.

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