Tax savings tips for self-employed and owner managed businesses

• Conventional wisdom is running a business as a limited company is usually better than sole trader from tax perspective, not any longer see our calculator .

• Use Benefit is Kind like:
               Trivial Benefits
               Social Function
               Life Cover – _{Group Life Cover or Relevant Life Cover (for smaller companies)}
               One mobile phone per staff
                Tax free loans upto £10,000

• You may also our other blog re tax saving tips for PAYE individuals useful.
• Employing family members
• Shareholding to family members
• Buying a van instead of a car.
• Pensions¹ – see blog
• Renting part of home to the business.
• Charging interest on Director’s Loan Account
• Making use of Capital Allowances:
  Super Deduction
  Full expensing
• Ensure to check your NIC Record
• Sole traders can put excess funds in ISA or in an offset mortgage.
• Buying assets for capital appreciation in children’s name (Bare Trust)as Parental settlement rules are not applicable for CGT. See blogs from Aberdeen and Step Journal.

Notes:

1. Pension contribution lowers Income tax not National insurance contributions; unless it is salary sacrifice.