When you first start out in business, you can feel excited with all of the possibilities, as well as overwhelmed by the sheer number of things you have to remember. One thing you should take control of right from the start is your business finances and especially tax.
The same goes for those who like me have to pay company tax on things like car and fuel use for private mileage.
The company car tax is extremely high, considering you are just using someone else’s owner property. I’ve had it where it would have been cheaper for me to pay off a loan than to pay the car tax. At least I would have brought the car.
One of my suggestions is to stop driving to work! I know Phill and public transport don’t mix.
After reading a great post from John Adams from Dad Blog UK, about being a Skater Boi, it made me think. http://dadbloguk.com/daddy-sk8er-boi/
Why aren’t we looking at other forms of commuting like scooters such as the 3 in 1 luggage scooter here from the Skate Hut.
A perfect balance between work and play. Imagine going on holiday with this bad boy! Then just calmly talking it on the plane as hand luggage. A dream and would definitely reduce those walking times. Yet you may want to consider drinking a few less ales from the Red Lion, or whatever old school named pub you’re drinking from.
You may also want to consider reducing your car tax by negotiating a different car. It’s amazing what a drop down from a BMW to a Ford Focus will do for you. It feels like a pay rise.
Whatever way you choose to reduce your tax bill make sure you’re tracking everything. I have spreadsheets of mileage amounts, invoices and expenditure charts including everything I spend when on the road. This will help you to see what you have coming in and going out so you can make accurate tax returns for the year.
If this is the first time you’ve had to look at your own tax, make time for it and keep things up to date. It’s too easy to let it fall to the wayside and ending up having lots to catch up on. This is usually how mistakes are made!
If you are starting fresh here;s a little info graphic to help you out. I ran a business with 300 employees nationally and this was always a dreaded word and thankfully we never had issues. So don’t be afraid to step up to the plate and reduce your tax where you legally can. If you need help, speak to the professionals.
Infographic design by Gilbert Tax Consultants