As a business owner, it can be easy to only focus on the expenses that come from running a company. This is especially true if you have a larger business that employs a lot of people and you need a physical premise or sell physical products. Then, your overheads and monthly expenses are definitely going to be quite high.
However, in the UK, there are so many benefits in the form of tax breaks that business owners are entitled to. Often though, many miss out on these because they simply don’t know about them.
So, if you’ve been worried about how much you’re spending in your business and how much it’s costing you to run, then we’re going to share with you what some of those tax benefits are. Hopefully you can then start having a bit of financial relief in your business.
As the owner or director of a company, getting a mortgage can often be a struggle – especially if you’re not that far into your business. However, this is by no means impossible. Though you’ll perhaps be required to show a little more in terms of paperwork and proof of earnings.
Even if you’re not the owner of the company, you can benefit from specific schemes from just being an employee in that sector. CIS Mortgages are just one example for those working in the construction industry. Of course you will still need to assess which lender is right for you and evaluate your circumstances, but resources like this CIS mortgage guide can walk you through the entire process.
Many business owners think that only a physical office premises can be added to their tax return to claim back some expenses, however, you can do the same for your home office, too, which is great news for those who are looking to save even more money by working from home and avoiding the financial burden of renting an office.
There are certain requirements and rules regarding this, but you can claim back a certain amount for things like electricity and utility costs that are incurred when using your home to carry out work related tasks, and depending on how much work you’re doing each day, these can quickly mount up, so it’s definitely worth seeking the advice of an accountant for this.
Whether you’re working from home or in an office, you can claim back some expenses for things like office equipment required for you and your team to work effectively. Things like computers, phones, printers and desks can all be claimed against on your annual tax return.
Sometimes travel is required for either you or your team, and this can include long-haul travel such as taking a flight somewhere, or it can simply be driving to another town 40 miles away, but some of the associated costs can actually be claimed back come tax season, so if you haven’t been doing this, then make sure you look into it.
As you can see, there quite a few things you can be claiming back on your tax return, and these are all tax benefits offered to business owners, so you’re well within your rights to be getting them and reducing the costs of your business.