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Top 10 accounting and tax tips by Elaine Clark

1. Claim against your profits for items you bought prior to starting your business but which you now use in your business e.g. mobile phone, laptop, software, stock, etc.

2. If you work at home remember to claim against your profits for the use of your home as office.

3. If you register as self employed part way through the tax year but were employed before that date you may be entitled to a tax refund on the PAYE paid so far.

4. If you are Vat registered it may be beneficial to switch to a Vat flat rate scheme.

5. If you employ staff get a tax free payment from HMRC by filing your employer returns on line. You can claim £100 for the 2007-2008 return and £75 for the 2008-2009.

6. If have a major investment in plant and machinery planned, try to delay it until after 6 April 2008. From then you will be able to claim the first £50,000 of any expenditure against your profits in the year you spent it.

7. If you are self employed consider transferring your business to a limited company – there are tax savings to be made on the way that you take your profit out of the business.

8. If you do have a limited company put your mobile phone in the name of the business and you can claim all the costs of the phone and not just business calls.

9. Again, if you do have a limited company set up a pension through the company and claim the costs of this against your profits.

10. Claim for mileage for your business trips at 40p / mile for the first 10,000 miles and 25p / mile thereafter. You can also claim 24p / mile if you use a motor bike or 20p / mile if you use a bicycle.

Article by Elaine Clark, Chartered Accountant
elaine@CheapAccounting.co.uk
www.CheapAccounting.co.uk

Elaine is the founder of CheapAccounting.co.uk, which offers a fixed price, on line accounting solution to small businesses. With over 20 years experience in accounting and IT she is well placed to advise small businesses and start ups on their accounting matters.