5 Accounting Tips to Kickstart Your New Business

Running a business in Liverpool can be challenging, but missing out on tax-saving opportunities shouldn’t be one of them. At Excel Accountants, our experienced team of Liverpool accountants is here to help you keep more of your hard-earned money. Below are five straightforward tax-saving hacks every business owner should be using, make sure your accountant isn’t missing any of these!

Claim Mileage Allowance for Business Travel

Do you use your personal car for business trips? If you’re not claiming mileage, you could be leaving money on the table! For the first 10,000 miles each tax year, you can claim 45p per mile, and 25p per mile for anything above that. This simple claim can reduce your tax bill and add money back to your business.

Take Advantage of Trivial Benefits

As a business owner, you can reward yourself, and your team, with up to six £50 trivial benefits per tax year, such as Amazon vouchers. These benefits are tax-free for employees and fully tax-deductible for the company. It’s a smart way to offer perks without increasing your tax liability.

Make the Most of the Working from Home Allowance

Running your Liverpool business from home? Don’t forget to claim the working from home allowance! You can set up a rent-back agreement with your company or use HMRC’s flat-rate allowance. This lets you claim tax-deductible costs for the space you use at home for your business, lowering your overall tax bill.

Optimise Your Director’s Salary

Are you paying yourself as a director? You can take a salary of up to £12,570 per year, within the personal allowance threshold, without paying income tax. Not only do you save on tax, but your company can claim full tax relief on your salary, making this a win-win for you and your business.

Don’t Miss Out on the Employer’s Allowance

Here’s a major one that many Liverpool businesses overlook: Employer’s Allowance. If you qualify, HMRC will give your business up to £10,500 in credit, directly reducing your National Insurance bill. Make sure your accountant is including this in your tax planning so you don’t miss out on valuable savings.