Our short guide gives an overview on some of the best ways for you to save on your tax bill.

Claiming tax relief

Sideways relief:
This is where you offset your self-employment losses against other tax that you’ve paid. For example, offsetting the tax you pay because of employment in order to claim a tax refund.

Research and development tax credits:
Businesses are able to claim tax relief on the costs of innovation and modernisation, and thus reduce their tax bill in the process. For example, dental practices that have invested in R&D projects are eligible for small and medium sized enterprises (SME) R&D Relief, which allows deduction of extra 130% of their qualifying costs from yearly profit.

Limited company tax savings:
If you’re taking money from a limited company, consider the most efficient way to pay yourself. This usually involves taking a combination of salary and dividend payments in order to pay less tax.

Home and childcare costs

Claiming for your home as a workplace:
If you’re doing work or administration at home, then you might be able to claim back some of the costs of using your home as an office or workplace.

Claiming back childcare:
If you have children being looked after by a registered childminder, then you may be able to claim tax relief using childcare vouchers. Alternatively, you may be able to get support for each child looked after by an approved childcare provider. This is available via the tax-free childcare government scheme that pays working parents a top-up based on their childcare costs.

Saving tax when you’re VAT registered

Did you know that once you register for VAT, you may be able to reclaim VAT that you’ve already paid?
 – You can reclaim the VAT you’ve paid on any assets that you still own at the date of registration, for purchases taking place up to 4 years before registering.
 – You can also reclaim VAT paid on services up to 6 months before the date of registration.

Looking for more advice on Saving Tax?

Simply phone us on 020 4577 1565 and one of our friendly Dental Accountants will be happy to help.

Disclaimer: The content is provided for informational purposes only and maybe referenced from external publications.