Ways to reduce your Business' tax bill
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Here's some quick tips to reduce your tax bill from Kyle McGill, Financial Adviser, at Amber River.
- Save on your National Insurance Bill via Salary Sacrifice - Often, we've found that employers pensions are set up in the quickest way possible, and by that they use a method of 'net pay' pension contributions. Changing this to salary exchange saves you (on your soon to be) 15% national insurance Class 1a on your contributions, plus it can save your employees on their National Insurance. What's the catch? It's not suitable for minimum wage workers. Directors can also contribute to their pension and save corporation tax up to £60,000 per year depending on their circumstances.
- Consider 'disaster planning' & ensure the business is set up to continue - I've recently had a case where a director passed away unexpectedly, fortunately for the remaining directors, we had cover in place for them to be able to purchase his shares, as well as a lump sum to tide them over whilst they found a replacement. The business paid for this cover and it was classed as a business expense.
- Rebroke and review your existing benefits - Quite a few firms have death in service, but it hasn't been looked at for the last few years. We’ve found that we can usually save money on group schemes due to our whole of market status. Furthermore, it may be that you want to consider enhancing your offering for your employees. This can be done to reduce your corporation tax bill.
In addition to being SME business experts, Amber River can also help with a whole host of other aspects of your finances, which we'd happy to discuss.
Kyle McGill is a Chartered Financial Planner and a Fellow of the Personal Finance Society, the trade body's highest accolade. He has built compelling experience and expertise in working with businesses and business owners, from simple solutions to complex multi-faceted plans.
Get intouch with Kyle on his email - kyle.mcgill@amberriverea.com, phone - 07729090128, or visit their webiste.
Kyle McGill is a Chartered Financial Planner and a Fellow of the Personal Finance Society, the trade body's highest accolade. He has built compelling experience and expertise in working with businesses and business owners, from simple solutions to complex multi-faceted plans.
Get intouch with Kyle on his email - kyle.mcgill@amberriverea.com, phone - 07729090128, or visit their webiste.