If you’re a self-employed director of a limited company, this is a very difficult period, as there has been no real help from the government during the COVID-19 crisis. This means finding ways of cutting what you have to pay in tax is more important than ever. Here are some options to look into:

Plan with your accountant

Research shows that taxpayers in Britain overpay tax by £4.9 billion each year, with failure to plan being part of the reason why. Make a point of speaking to your accountant about ways of saving on tax – or get an accountant who understands tax return services in Goole or anywhere else if you don’t have one – so that you can prepare a strategy.

Look beyond salaries and dividends

It was fine to focus on paying yourself via dividends rather than a salary until HMRC started to clamp down on the matter. If you now find that most of these dividends are subject to a high tax rate, you can mitigate this through paying some of them into structures exempt from tax, such a pension, or by using trusts.

Claim what you’re entitled to

As a limited company director, you’re entitled to claim against your tax liabilities for everything from holidays to school fees, and you should be taking advantage of expenses you’re legally entitled to.

At Adaptive Accountancy, we’ve built a word of mouth reputation for helping sole traders with tax matters. Call us today for details.

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