They say it takes money to make money, but what if a few simple changes could help you make money whist reducing those pesky outgoings? In this blog, we take a look at a few ways that most small businesses can save money and improve their profits in this financial year.
- Find out if you’re paying too much tax. Many industries have special allowances available approved by HMRC. Get in touch with your local trade body or association for details on any relevant dispensations. Here’s a list of all the approved professional organisations and learned societies.
- Consider a home-office. If you’re paying rent for a smaller space, why not consider setting something up at home? Especially if you’re a self-employed business owner, this is a no-brainer – working from home comes with all sorts of tax relief, including a proportion of council tax, insurance, electricity and phone bills.
- Review your remuneration structure; there have been recent changes to dividends so you might not be paying yourself in the most efficient way within the current legislation. Read more in our blog about dividend tax changes here.
- Consider whether freelance and temp staff can help in times of growth. More and more small businesses are turning to freelancers and contractors for short-term gain, then when business isn’t quite so fruitful you can reduce your staff expenditure quickly and easily.
- Cut back on expensive traditional marketing activities, such as newspaper ads. Recent research shows that readers are ‘blind’ to these tactics; try something new, like social media marketing.
- VAT – which rate are you on? Should you be paying Flat Rate? It’s a great way to avoid any unexpected uplifts in your payments to HMRC should you have a storming business year.
- Keep hold of your staff – recruitment and training can cost a fortune via an agency (which can be faster) or in missed business opportunities while waiting for the perfect candidate. Instead, budget for regular perks for your staff and offer them a package of benefits. Many of these are tax-free and can make a big difference to your colleagues’ lives.
- Finally, spend your time wisely; you know your business better than anyone – so that’s all you should be doing. When it comes to taxes and business advice, Warr & Co can help you by taking all of that off your hands and managing your finances in an efficient way. Plus, by hiring a professional, you’ll ensure you don’t miss out on tax savings that you qualify for. Contact our team today to find out how we could help you transform your business.
“I am a small business owner and in the beginning didn’t have a clue where to start. Working with Warr & Co has been invaluable. I have been impressed with their responsiveness to all my questions, their ability to talk plain English when at times tasks have appeared complex, their on-going support, advice and counsel is always added value. I have no hesitation in recommending Warr & Co.” – Karen Flavell, AChange4U Limited
Warr & Co are dedicated to helping their small business clients succeed, bringing a personal approach to each and every client. Why not get in touch for a no-obligation discussion with a member of our accounting team?