Tax Advice and Planning

Do you know what your tax liability is going to be in 12 months’ time?

Have you planned ahead?

Cash flow is the main reason businesses fail. It is important to plan ahead and set the business short term and long term goals.
We encourage clients to send us there books early in the tax year. As soon as possible after 05 April. We are then able to advise on the exact personal tax liability due on 31 January and also the following July.

If you are planning to expand your business, you need to know the cost implications of doing this.

By using NMB Accounting- you can

  • Avoid any nasty surprises and large tax bills
  • Save tax
  • Reduce future tax liabilities
  • Have a clear plan for the future.

Sole Trader or Limited Company

Do you know the benefits of each?

For many businesses it is advisable to change to a Limited company as this can save you thousands in tax every year.

The savings can be made because a Sole trader pays income tax and national insurance on their profits whereas a Limited company only pays Corporation tax on its profits. The current rate for Corporation tax is now only 20% compared to income tax ranging from 20% up to 50%. A sole trader also has the additional cost of National Insurance to pay on its profits.
By forming a Limited company, and paying yourself a small salary and a dividend, on an annual profit of £50,000 you would save approximately £3,500 per year.

To find out exactly what you could save – please contact us and we can do a fully worked example based on your business.

Thinking of buying a new car for the business?

Did you know that if you buy a new car with fewer than 110g/C02 emissions the full cost of the car can be claimed against tax in the first year?

For example:

If you purchased a new car worth £20,000 your tax liability would be reduced by:

  • As a sole trader paying 20% tax - you could save tax of £6,200
  • As a sole trader paying 40% tax - you could save tax of £10,200
  • As a Limited company paying 20% tax- you could save tax of £4,000

NMB Accounting Services