As any tax accountant will tell you, saving clients money is a big part of the job. Beyond filing your annual tax returns and keeping you compliant, tax professionals can offer expert insights and specialist advice on how to maximise your deductions.
So if you’re looking for new ways to cut down on your tax bill this year, we have a few tips and tricks to help you out. Let’s dive in.
A tax accountant’s top tips for maximising your deductions
1. Keep accurate records
Never underestimate the power of bookkeeping. Accurately recording your business transactions and holding onto your receipts won’t just help you meet your obligations: it can make a big difference to your tax bill. You’ll find it much easier to claim business expenses with all the right details to hand.
If you ask us, bookkeeping should be at the top of your to-do list. However, consistently staying on top of your books can be challenging, especially if you already have a lot on your plate. In this case, hiring a qualified bookkeeper to take on your record-keeping responsibilities for you can save you a fair bit of time, stress, and even money.
2. Use cloud accounting software
If you’re not already using cloud accounting software, now is the time to start. Beyond letting you automate processes and work on datasets remotely, cloud technology gives you greater visibility over your finances.
This can make it easier for you and your tax accountant to make the most of your allowable expenses and spot new ways for you to save.
3. Understand your allowable expenses
As a business owner, you can deduct a huge range of allowable expenses from your taxable profits, including:
- rent on business premises
- utility bills
- office supplies
- legal and accounting fees
- staff wages
- marketing and advertising costs
Understanding what you can and cannot claim for can help you take more money home at the end of the day.
4. Research tax breaks
Maximising your deductions isn’t just a matter of making the odd saving here and there: you need to look at the bigger picture. Do you make the most of your allowable expenses? Are you eligible for tax breaks like R&D tax credits or small business rates relief? Would it be more tax-efficient to incorporate your business?
Your access to different tax breaks will depend on your circumstances and the structure of your business. If you run a startup or SME, our recent article, top small business tax planning strategies for success, can help you think of different ways to save.
5. Hire a good tax accountant
We’ll be the first to admit that the tax system is complicated.
Familiarising yourself with all the different tax reliefs and allowances can be incredibly time-consuming — so why not bring in an expert?
At Thomas Barrie, we know the tax system like the back of our hand. Our tax accounting services can help you find new ways to save while ensuring you meet your obligations at all times. We can even save you time and stress by submitting your tax returns and claiming reliefs on your behalf.
Once you have a good tax plan in place, we can meet with you on a regular basis to ensure you’re as tax-efficient as possible. Reviewing your strategy is essential if you want to keep up with ever-changing legislation.
Looking for a tax accountant to help you manage your tax affairs? Get in touch with us today.