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Need More Time to Get Your Tax Return Sorted? Join Afirmo to qualify for an extension for the filing of your business Income Tax return until 2025 – and if you are within the first 1000 people to sign up to this offer, Afirmo will get process and file your 2024 business Income Tax return FREE.  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 July 7, 2024 to enjoy more time to get your finances sorted. 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.  Get your FREE tax return now 👇

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.

Tax Tip of the Week: Simplify Your Tax Management with HMRC 💼📑 Managing your taxes doesn’t have to be stressful. Here’s how to streamline your tax obligations using HMRC’s online services: 🔹 1. Set Up an HMRC Business Tax Account Your Business Tax Account lets you view and manage all business taxes—PAYE, VAT, Self Assessment and Corporation Tax—in one place. Enable notifications to stay on top of payment deadlines and filing dates. 🔹 2. Automate Payments for PAYE and VAT Direct Debit: Set up direct debit payments for both PAYE and VAT to ensure you never miss a payment. Automating these payments reduces the risk of late fees and keeps your business compliant. For PAYE: Pay your employees' tax and National Insurance automatically each month. For VAT: HMRC collects VAT payments after you submit your quarterly return, making it hassle-free. 🔹 3. View Personal Tax and National Insurance Use your Personal Tax Account to check your tax history, National Insurance contributions, and state pension forecast. It’s a great way to keep track of your personal tax status and ensure everything is up to date. 📝 Key Takeaway Setting up a Business Tax Account and automating PAYE and VAT payments with direct debits can save you time and keep you compliant. Plus, using the Personal Tax Account keeps your personal finances in check. Stay organised and reduce your tax stress! 💼📑 #TaxTips #HMRC #PersonalTax #TaxManagement 📊🌟

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

Do you know what Making Tax Digital involves? After a conversation with a sole trader client this week, it became clear that a lot of business owners aren't aware of the upcoming changes to income tax and self assessment. Have a read of our blog to see if and when the proposed changes will affect your business going forward.

Starting a new business comes with various tax responsibilities. Here’s what you need to know: ⭐Register Your Business: Ensure your business is registered with HM Revenue and Customs (HMRC) to comply with UK tax laws. ⭐Self-Assessment Tax Returns: If you're self-employed, you'll need to complete an annual Self-Assessment tax return to report your income and expenses. ⭐Pay Income Tax: Be aware of your income tax rates and thresholds. You'll need to pay tax on your profits above a certain amount. ⭐Value Added Tax (VAT): If your turnover exceeds £90,000, you must register for VAT and charge it on your sales. Understand how to manage VAT returns and payments. ⭐Corporation Tax: If you operate as a limited company, you'll be liable for Corporation Tax on your profits. Ensure you keep accurate records for your annual tax return. ⭐Keep Accurate Records: Maintain detailed records of income, expenses, and receipts to simplify tax calculations and compliance. Understanding your tax obligations can help you avoid penalties and ensure your business remains compliant. Need assistance with your tax planning? We're here to help!

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. 

How to Effectively Manage Your Tax Bills in UK Business (Tax season doesn’t have to be overwhelming.) As a UK business owner, managing tax bills can feel like an uphill battle. But what if I told you there are simple strategies to stay on top of it? 1. Know Your Deadlines: Missing a tax deadline isn’t just stressful, it can be expensive. Always set reminders for VAT, Corporation Tax, and other key deadlines. 2. Make Quarterly Payments: Instead of one big payment at year-end, why not spread the load? Set aside funds for quarterly payments to keep cash flow healthy. 3. Leverage Deductions: Are you claiming all your eligible deductions? From home office expenses to R&D tax relief, ensure nothing is left on the table. 4. Consult a Professional: You don't have to navigate this alone. A good accountant will help you optimize your tax position while keeping you compliant. Implementing these strategies can make tax season less stressful and more manageable. Where do you struggle the most with tax planning? P.S. Share this to help fellow business owners streamline their tax strategy in 2024. ♻️

💡 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

1. Income Tax - Income tax is the tax you pay on any money your business earns. Each year, you need to lodge a tax return to tell the South African Receiver of Revenue ( SARS) how much money your business has made and how much tax you are expected to pay. This will be determined by the expenses incurred while operating the business....🤎 https://lnkd.in/de7Jw8qg