January comes every year – hopefully! Besides keeping your new year’s resolutions, the other daunting issue at this time of year is TAX. Most self-employed people and some employees have to make a return to Her Majesty’s Revenue and Customs (along with a contribution towards her upkeep!) Firstly, this is a reminder to submit your tax return and pay any tax due ☹.
The other point of this article is to discuss what legal tax mitigation options might be available to Tree Surgeons & Arborists. These are our observations from client discussions and are not recommendations, which should only come from a suitably qualified accountant (and I am not one.)
The best way to reduce tax liabilities is NOT to do cash jobs. Instead, you need to plan and take specialist advice from an accountant who is up to date with legislation and allowances.
Regularly I hear about contractors who do not claim for:
• Travelling expenses
• Annual Investment Allowance for plant etc.
• Employers Allowance
• Charitable Contributions
Again, my advice is to consult an expert who may reduce your tax liability by claiming the above or consider other options such as:
• Changing your status, for example to an LTD Company
• Making pension payments
• Cycle to work or the electric car scheme
• Voluntary VAT registration
Tax planning is complex and there are many other options and points to consider, so take some time and plan. With the weight of the Covid debt on all of our shoulders, tax is only going one way – UP!
Let us know your thoughts
Has anybody else got any ideas on this subject? I am sure everybody will want to know any tips you have. Let us know your thoughts on Facebook.
And please don’t say move to a tax haven like Gibraltar, because there aren’t many trees there and it’s a LONG commute!
