Paying tax bills for corporations is necessary, but they can seem quite high. How do you go about putting more money in your pocket for all of the hard work you’re doing?
Thankfully, there are some great ways you can reduce your corporation tax bill every year, as long as you use them properly. Here are some tips you should start employing.
Claim Every Expense You Can
Spending money on new equipment for your company, for example, can be claimed on your corporation tax bill, since it’s a necessary expense. There are plenty of allowances that can be claimed, such as parking fees, any office supplies you buy, and any money paid to hire new employees.
Ensure that you use good software to record all of these expenses so that you can claim them later on your tax bill. You can end up saving a lot of money in the long run.
Invest in a Company Cellphone
Some people just don’t want to be bothered during work, and so think that only having a landline will cut down on the calls that they get. But the exact opposite is true.
By having a company cellphone, you can conduct more business even when you’re not in the office, and having one in the name of your business also means that any phone-related cost is also tax-deductible, including getting upgrades.
Putting Some Money Towards Pension
Paying into a pension plan is very tax-efficient, as you’ll have more money when you retire than if you didn’t. Pension plans are also reductions on your corporation tax bill at the end of the year, so that’s a good way to save even more money in your pocket.
Claiming Mileage
Do you have to drive or fly to another location to conduct a business meeting? Claim the mileage you’ve traveled on your corporation taxes. Because these trips are related to the conduction of your business, they are expenses that you can claim and therefore save more on your bill every year. You can save even more if you have a separate company car available instead of using your personal vehicle, as repairs to a company vehicle can also be claimed as business expenses.
Hiring a Good Accountant
Accountants went to school to learn all of the itemized deductions you can make to your taxes every year, so don’t sweat yourself having to do it every single year. Appoint an accountant to take care of all your paperwork for you to ensure that you not only cross every T and dot every I, but that you’re also saving as much as you can on your corporation tax bill every year.
You would be surprised how much you can save when you take all of these tips into account. Without saving on these expenses, you’re literally throwing money away by having to pay higher tax bills. Take the necessary steps and the right paperwork to get started on saving on your corporation tax bills sooner rather than later.
