5 tax incentives every micro business owner should know about
Starting your own business or working towards the next stage of growth can be an exciting, yet challenging time.
Saving on operating costs will undoubtedly be a big priority, but with many pull factors on your time, it can be easy for claiming tax incentives to slip down the ever-growing to-do list.
However, with many SME owners losing out on vital income from tax breaks and nearly half (46 percent) have a very poor? understanding of the tax relief available.
Reading through often jargon-heavy government literature on tax entitlements can be a time-consuming task. To help micro business owners cut through the noise, Tony Mills, director of Online Tax Rebates, offers a simple list of five tax incentives you may be missing out on.
Get VAT registered
Every business must register for VAT if their taxable turnover is more than 85, 000. As many SMEs don’t meet this, small business owners are missing out on the benefits of VAT exemption.
Yes, VAT is another thing to think about, but it can give your cash flow a much-needed boost. You must register voluntarily unless you provide goods or services which are exempt to receive the business benefits such as boosting your profile, making business dealings easier and avoiding financial penalties if you do creep over the VAT threshold.
The simple option is the Flat Rate Scheme, making VAT payable as a single fixed percentage of gross turnover. If you want a more accurate figure, keep all invoices which are raised and paid to complete accurate tax returns every quarter.
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