Afirmo’s Post

Behind in your business tax obligations? 🤦 Keeping you up at night worried? Or maybe you have avoiding thinking about it? Either way, not getting on top of your tax obligations is not going to serve you or your business well. Afirmo is here to help you get tax compliant and we can help you as soon as you get in touch. 🙌 Afirmo is a privately owned business tax management provider, and we are an approved Tax Agent for NZ Inland Revenue, so we are positioned to support you in getting your business tax sorted, confidentially and affordably. BONUS! Join Afirmo to delay your business Income Tax return until 2025 – and the first 1000 people to sign up will get a bonus FY24 Income Tax return FREE.  Take advantage of having more time to get your ducks in a row. Whether your business is a company, sole trader, or side hustle, Afirmo is your one-stop-tax-shop here to help you get that just-filed feeling. Try before you buy – take advantage of our free trial. Afirmo’s cloud-based accounting software and in-house accountants make managing your tax a breeze. Invest in an eligible monthly or annual Scale Up plan and complete the tax agency form by 7 July to enjoy more time to get your finances sorted. Why risk penalties and headaches by paying taxes late when you can have peace of mind now 🚀 Learn more here 👇

100% expenses write off Sadly, that guy in the pub surprisingly didn’t explain this correctly 😬 Example below 👇🏻 Net profit subject to corporation tax - £100,000 Corporation tax payable at 19% - £19,000 Profit after taxation - £81,000 After discussing the above example with their accountant, the business owner decides to spend £50,000 on equipment, repairs for the office, new softwares and other investments into the business Profits within the business are now reduced by £50,000 Net profits subject to corporation tax - £50,000 Corporation tax payable at 19% - £9,500 Profit after taxation - £40,500 In summary, you’ll only ever save the applicable tax rate on your allowable expenses 👌🏼 To calculate the tax relief, work out your applicable rate of corporation tax and X this by the amount you’re planning on spending and in most scenarios this will show you the tax relief available 💷 Certain expenditure is deemed to be capital, and tax relief may be restricted. But that’s a different video entirely ❌ FYI, I’m well aware corporation tax is no longer a flat rate of 19%. It’s purely simplified for this example.

💡 Tip for Small Business Owners 💡 Simplify your tax management by using different bank accounts! Something quite simple but not often done. 🌟 Open one account for your Self Assessment, one for corporation tax, and another for VAT. This approach helps you keep your tax funds separate and organized. 💼💰 🌟 Make sure you have direct debits with HMRC for your VAT and PAYE taxes, paid out of the correct bank account. This saves time making manual bank payments to HMRC (and the pain of making those payments!) With Xero well run and the right processes in place, you can easily generate the reports you need to stay on top of your tax obligations. 📊✅ By setting aside funds for your business taxes on time, every time, you'll avoid last-minute stress and ensure your business stays financially healthy. Ready to streamline your tax management? Let's make it happen together! 🚀 #SatoriAccounting #SmallBusinessTips #TaxManagement #Xero #FinancialHealth #BusinessSuccess

5 tax tips for business owners 👇🏼 1. Keep Accurate Records: Maintain detailed records of all income and expenses. This will help you accurately calculate your taxes and claim any allowable deductions. 2. Understand Tax Deductions: Familiarize yourself with allowable deductions, such as business expenses, travel costs, and equipment purchases. Taking advantage of these deductions can reduce your taxable income. 3. Stay Organized with Deadlines: Be aware of tax deadlines and submit your returns on time to avoid penalties. This includes VAT returns, corporation tax, and self-assessment tax returns if applicable. 4. Consider Tax-Efficient Structures: Explore tax-efficient business structures, such as forming a limited company or utilizing tax reliefs and allowances. Consulting with a tax advisor can help you determine the most advantageous structure for your business. 5. Invest in Tax Planning: Invest time in tax planning to optimize your tax position. This may involve forecasting your tax liabilities, exploring tax-saving investments, and staying informed about changes to tax laws and regulations. 📍 Offices in Brackley, Milton Keynes and Buckingham 📧 [email protected] 💻 www.brookandco.com

The reason we urge new business owners to save for tax? The advance payment scheme! That year of growth can be hit with a tax bill multiplied by 2. A huge shock! Two clients experienced this last year. They came to me behind with their books, we caught up and I had to break the news. (which is horrible) A £6k tax bill was £12k. (and no savings). £9k by January 31st and £3k by July 31st. A payment plan was set up, but this is a BIG chuck of money going out - meanwhile the current year is accruing tax. Don't let it catch you out! keep in control and pretend its deducted at source (put it into a savings account). If you would like me to explain this scheme, please don't hesitate to drop me a DM. I will explain it in a post in the next few days. #selfassessment #bookkeeping #Xerocertified #supportsmallbusiness

The Top 10 Tax Deductions For Self-Employed (Save $1,000s) Did you know that each year, more than a million taxpayers pay more tax than they need to. It’s often because they miss out on claiming important business expenses. While larger businesses save big by planning, smaller businesses can too. Let’s make sure you’re not leaving money on the table—claim those expenses and keep more in your pocket! Watch here for the details of what to claim as allowable expenses. https://lnkd.in/eni2Xt8u It’s advisable to use bookkeeping software like QB, Xero or any other to keep records of all your business expenses as proof of your costs. Understanding allowable expenses helps you reduce your taxable profit, meaning you pay less tax. P.S. Would you like to share your experience of not claiming any business expense?

⚠️ 3 common tax return mistakes to avoid ⚠️  1. Using the wrong tax code. You’d be surprised at just how often business owners end up paying the wrong amount due to the wrong code.  2. Bad bookkeeping. If you’re not carefully keeping track of every business expense you could be missing out on some significant tax deductions. You’d be surprised at what a difference those small, forgotten expenses can make.  3. Missing the deadline. This one drives me crazy! It’s easy to avoid and yet every year I see many business owners being hit with a hefty late payment fine.  What’s your biggest struggle when it comes to filing your tax return?

⚠️ 3 common tax return mistakes to avoid ⚠️  1. Using the wrong tax code. You’d be surprised at just how often business owners end up paying the wrong amount due to the wrong code.  2. Bad bookkeeping. If you’re not carefully keeping track of every business expense you could be missing out on some significant tax deductions. You’d be surprised at what a difference those small, forgotten expenses can make.  3. Missing the deadline. This one drives me crazy! It’s easy to avoid and yet every year I see many business owners being hit with a hefty late payment fine.  What’s your biggest struggle when it comes to filing your tax return?

A very useful tip for anyone starting in business would be to budget for your taxes. This can also be useful if you’re not starting in business, but have started to take any income not deducted under PAYE, such as dividends from a limited company, or become a profit share partner in an established partnership, or starting to receive substantial rental income, for example. It’s not like being employed, where you get paid into your bank, taxes all dealt with and paid, you spend it and then a month later, you get more money into your bank to spend. Remember, as a business owner, you get paid to do some work, you will probably have to spend money to enable you to do that work, and then at a later date, possibly even nearly two years after you’ve been paid, you’ll need to pay income or corporation tax on that money to HMRC. If you’re VAT registered and charge VAT, don’t spend that either, that money is not actually yours. Similarly with a profit share or dividends taken - it could be nearly two years before you have to pay a tax bill. So, set up an additional bank or savings account to run alongside your main business account. Transfer a % of your income into that and let it build up as a “Tax Account”. So you’ll have no problem when the taxes are due and, if your tax is less than you saved, you may even be able to pay yourself a bit of a bonus. Remember the deadline to tell HMRC you need to fill in a Tax Return if this applies to you for the year ended 5th April 2024 is 5th October (this Saturday) and is quite straightforward to register online. 

Breaking News: Small Business responsible for 60% of tax gap 👀. This analysis of HMRC Tax gap 22/23 report released 20th June, concludes as such, https://lnkd.in/gRxdxdwA. So it can be expected that whichever government takes office next month, they will lean heavily on HMRC to close the gap. All major parties have spoken about spending on public services without increasing taxes. Therefore tax collection and compliance will be ramped up. Now. For business owners whose business goals are funded by ‘net profit after tax’, they don’t have this problem on tax arrears. Because they put aside tax money as their target is ‘net profit after tax’. They also are ready to file tax returns very early after tax year and financial year have ended, because they monitor their financial performance versus budget/forecasts on a monthly or quarterly basis. So any ‘noises’ from HMRC do not affect them. Hopefully you are among such business owners. If not and you’d like to be, get in touch and let’s get to work. https://lnkd.in/ea4v-a_N