Join our “How tax efficient is your business” webinar on Thursday 28 April 2022.
2021 was all about recovery in terms of guidance from the government. There have been several new legislation and tax rates released by the Government for 2022/23, which will certainly help a number of businesses become more tax efficient.
Here is an updated list of 5 things your accountant should be doing (but probably doesn’t) for you and your business:
1/ Advising you to utilise your lower rate tax bands
What is the most tax-efficient method for company directors to take income from their company? As a director, it is a good idea to take a small salary from the company and put yourself on your company’s payroll.
You do not pay income tax on your earnings until you pass the personal allowance (currently £12,750 in the 2022/23 tax year). However, you will have to pay NICs if your income passes the NIC Primary Threshold (currently £9,880). Taking a “director only” salary of £9,100 is the most tax efficient way to remain within these thresholds.
After which, most directors choose to take most of their income in the most tax-efficient way – dividends.
2/ Offer fixed and fair prices for services
Frequently we are approached by SMEs frustrated at surprise bills from their accountants. It is a bit unfair to tell you the price after the work has been completed. At Fusion Accountancy, we offer a fixed 12-month retainer covering our clients on all required services, including meetings, email communications and telephone calls – so there are no surprise bills!
3/ Tax efficiency for your business
Being proactive with tax planning is imperative, especially in advance of filing deadlines or year end.
Advising clients of the new super deduction for capital allowances, essentially an uncapped deduction of 130% as a first-year allowance. This is a huge saving on corporation tax and capital expenditure.
4/ Being tech-savvy
As ‘Making tax digital’ (MTD) rules are now fully coming into force for VAT, it’s more important than ever that your accountant is using a form of cloud-based software.
There are so many bolt-on apps to cloud-based software, which can not only improve the accuracy of your financial information, but also save you time when needing to provide information. It also gives you a clear idea of where the business stands at any given time.
5/ Reaching out on an on-going basis
It is only through regular reviews and catch ups with your accountant that you’d know about new legislation or new tax efficiencies available to you. Being able to discuss your future plans or talk through current plans with your accountant is a must.
Choosing an accountant who makes a difference.
At Fusion Accountancy, we have found that our clients truly value the fact that we see ourselves as part of their team. We also:
- Follow the ethos of transparency and sharing information with our clients without needing to be prompted.
- Offer fixed prices, split monthly. Our clients know their yearly accountancy bill in advance, which equals to full transparency.
- Do not charge for meetings or telephone calls, and our monthly fees include on-going tax planning.
Do you feel that you are deriving maximum value, and transparency from your accountants? If not, we would be more than happy to help you.
