There is plenty for business owners to worry about, but topping the list is tax liabilities. In a survey conducted by specialist insurer Hiscox, a drop in profits and rise in taxes is the major concern for the majority of SME´s in the UK and the majority of business owners do not think the government is doing enough to protect the financial interest of small businesses.
Amid growing concerns over the sluggish economy, business taxation is putting a heavy burden on SME´s in the UK. There is a genuine anxiety towards taxes in general, and with carbon tax about to be introduced into the melting pot there is even more cause for concern.
Labour want tax breaks for small businesses
Whilst the coalition government is giving large corporations preferential treatment, the leader of the Labour Party, Ed Miliband has announced plans put a stop to reduced Corporation Tax for large companies and reduce local tax levies for small businesses.
If Miliband were to be elected Prime Minister in the 2015 election, he promises to increase Corporation Tax and give tax breaks on business property to SME´s. The idea involves paying local taxes on your property in relation to your income.
That means that if you pay more in rent than you can afford based on your income, you will be able to claim some of the rental charges back on your taxes. The plan is to cut rates on premises where the rent is £50,000 or less and is expected to benefit around £1.5m shops, pubs and sole traders by around £225 a year.
Take advantage of tax breaks
Some entrepreneurs feel the government is not doing enough to help small businesses grow because they are being crippled by taxes. And a saving of £225 a year does not add much fuel to a marketing campaign. However, there are plenty of other ways of reducing your tax liabilities, and all added up may save you enough to invest in the expansion of your business.
The areas in which you can save on tax depend on your personal and business circumstances, but without knowing where you can save will likely result in an overpayment of tax which you won´t get back.
The filing of your Self Assessment tax return form is the responsibility of the business, therefore if you have not claimed for something you are entitled to HMRC are not obligated to award it to you. However, they will fine you £100 if you make a mistake and try to claim something which you are not entitled to.
Hiring an accountant
Many small business owners see accountants as an expense they cannot afford, but the amount of taxes that an accountant saves you pays for itself – and there is still enough left over for you to invest in your business.
Not only do our accountants offer tax advice, the experts at Taxaccolega also help you fill in your tax return forms and provide advice and assistance putting business plans together. If you are a small business in need of some financial help call us today on 0800-0235-234 or email firstname.lastname@example.org.