Running an online business? Ensure you’re not overpaying on taxes! Here are 5 expert tips to help you retain more of your hard-earned money:
1. Choose Your Structure Wisely
Sole trader or limited company? Each has different tax implications. Limited companies often pay less tax but come with more paperwork. Consider your long-term goals and potential savings.
2. Know Your VAT Threshold
The current threshold in the UK is £90,000 from April 2024. If you’re approaching this, plan ahead! VAT registration can impact your pricing and competitiveness.
3. Maximise E-commerce Expenses
Don’t miss out on deductions! Website costs, packaging, home office expenses, and even a portion of your internet bill could be tax-deductible.
4. Directors: Pay Yourself Smartly
If you’re a limited company, optimise your tax position by mixing salary and dividends. The right balance can significantly reduce your overall tax bill.
5. Embrace Digital Record-Keeping
Stay compliant with Making Tax Digital. Good digital records not only keep you compliant but also help identify more tax-saving opportunities.
Remember, tax laws change frequently. Always consult with a qualified accountant for personalised advice!