Some basic tax saving tips for new limited companies

Cope & Co Accountants in Wirral offer specialist tax advice throughout Merseyside. Our small team of tax advisors provide bespoke tax advice.

Here are some basic tips:-

Maximise your expenses
Claiming business expenses is crucial for the financial health of your company. These expenses are deducted pre-tax and VAT, meaning more cash remains in your business. Record any expense related to the day-to-day running of your business, whether paid by the company, yourself, or your employees. According to HMRC, a business expense must be necessary and wholly and exclusively incurred for business purposes.

Examples of deductible business expenses include:‍

Equipment: Laptops, mobile phones, furniture
Consumables: Pens, paper, ink
Professional fees: Accountants, solicitors, patent attorneys
Marketing: Websites, advertising, hosting fees
Professional development: Membership fees, subscriptions, books, training
Insurance: Professional indemnity, contents, liability insurance
Travel: Mileage, public transport, taxis

As specialist tax advisors serving Merseyside, at Cope & Co Accountants based in Wirral we ensure our clients take full advantage of all available allowances.

Claim start-up costs
You can claim business start-up costs which you incurred before forming your limited company. Document expenses paid from personal funds and claim them when the company begins trading. Ensure these expenses meet business expense criteria and are within the allowable time frame: up to seven years for Corporation Tax and six months for VAT before starting business operations.

Transfer personal assets
Transferring personal assets to your company can lower start-up costs and positively impact your tax liabilities. When transferring, establish the current market value of the asset, especially if it was initially for personal use. You can use resources like eBay to determine the second-hand value. Create a personal invoice listing each item and its cost, attaching original purchase receipts for your company records, if available.

For more personalised tax advice, including maximising your allowances, contact Cope & Co, your local accountants based in Wirral. Our Merseyside tax advisors are at your service!

Call us on 0151 374 0875 or write to us at enquiries@copeco.uk. Alternatively, visit our contact page to book a free, no obligation call back.