Tax efficient business structure
You’ve made the leap; it’s your way and the highway, right?
But which business structure do you choose to trade as? Unincorporated or incorporated? Is it just going to be you, or are you working with partners? Do you need to limit your liability? Or is flexibility your goal? What are the taxation consequences of each choice? Does your expectation meet your commercial objectives, and is it tax efficient?
So much to think about, and there is no one-size-fits-all solution to every business model. Contact us for help in making these decisions.
Books & Records – Cloud bookkeeping and software
To Sage or not to Sage. How about Xero? FreeAgent? QuickBooks? Would a spreadsheet do the job?
My advice here is to keep it simple. There is no ‘best’ option here; some software works better for some people and businesses than others. If you have experience of using bookkeeping software, this might help you make this decision, or it may simply confirm for you what you don’t want your bookkeeping to look like!
Key things to look for when making your choice are:
- Ease to use
- Additional features; automation, customisation, accessibility
- Reporting and analysis
- Security and backing up
Tax deductible expenses
This is easy; according to HMRC, tax deductible expenses are those which are incurred ‘wholly, exclusively and necessarily’ in the course your business.
But what does that actually mean? What about dual purpose expenditure? What if you already pay for a telephone line into your home office, can you claim for the cost of that? What about workwear? Membership fees and subscriptions?
And how long do you need to keep evidence of your expenses, alongside other business records? Are digital records acceptable? So many questions.
Check out this blog post for more guidance, along with useful resources for researching expenses.