The Art Of Saving Tax For Startups By PJW Accounting

www.pjwaccounting.co.uk

‘The Art of Saving Tax’

By Paul Woodcock BA (Hons); FCA


Who am I?

• Chartered accountant • Amateur photographer • Insanity devotee • Amateur Gardener


What makes a great night for me?


Corporation Tax• Profits of £30,000• Total tax due = £6,532

• Incorporate – total tax due £4,944

• Tax saved = £1,588


But what about everything else?• Using the family to save tax

• Wife’s wages – tax saved £2,000

• Can you employ the children?

• Split the share capital – tax saved £2,500

• Use of home as office – Licence Agreement tax saved - £400

• Use old van with FPCS – tax saved £300


VAT• Not currently VAT registered• Inputs of £2,350 not being claimed

• Set up a VAT registration – tax saved £2,350

• Bonus – he looks like a bigger business• Double Bonus – application for FRS saved £3,250


Capital Gains Tax• Couple own a rental property• Previous accountants never asked about CGT• But CGT rules due to change

• Tax due if selling after 5 April - £10,250

• And property only in husband’s name

• As a result of our meeting property sold before April and couple saved £10,250


Inheritance Tax• Total estate worth over £700,000

• But no will in place

• Husband owned everything

• No additional tax due but part of estate was at risk of being placed in trust leaving wife short of funds


Total savings from eveningIncorporation 1,588 Wife’s wages 2,000 Split shares 2,500 Use of home as office 400 FPCS 300 VAT registration 2,350 FRS 3,250 CGT 10,250 Total 22,638


Who would I like to connect with?• Saving are applicable to all businesses

• But accountants not good at saving CGT• Estate Agents• Surveryors• Architects


‘Thank you for listening’

The Art Of Saving Tax For Startups By PJW Accounting

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Transcript of The Art Of Saving Tax For Startups By PJW Accounting