PJW Accounting - FSB Talk August 2016

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‘Top 5 ways to Save Tax?’

ByPaul Woodcock BA (Hons); FCA


Who am I?


5 top saving ideas1. Use your family2. Get your VAT right3. Use of home as office4. Use of vehicle5. Entertaining


1. Use your familya) The spouse


How?

• Salary• Dividend


b) The children


Whats the rule?

• BIM47105 - where there is "'equal pay for equal value' the amount paid is fully allowable, notwithstanding any connection between payer and recipient”

http://www.hmrc.gov.uk/manuals/bimmanual/bim47105.htm


What about IHT?


How does the family help?

• Spousal exemption• Main residence relief


2. Getting your VAT right


Main errors

• Not registering• Flat rate scheme• VAT on subsistence and travel• VAT on home office expenses• Thinking it’s too much administration


3. Use of home as office


3. Use of home as office

• Who can claim it?• How is it calculated?• What costs should be included• Claiming when you already have an office• VAT on home expenses• Setting up a licence agreement with a limited

company


4. Use of vehicle


4. Use of vehicle

• Self employed – 2 options• Limited company – 2 options• VAT on petrol claims – keep receipts


5. Entertaining


5. Entertaining

• What is entertaining and is it allowable?• Let’s turn entertaining into something else?• Subsistence! • Advertising!• Cost is tax deductible and VAT allowable.

www.pjwaccounting.co.uk

‘Thank you for listening’

PJW Accounting - FSB Talk August 2016

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Transcript of PJW Accounting - FSB Talk August 2016