SAVE TAX IN A PANDEMIC
Great news that businesses reopened recently, let’s hope that’s the last time they have to close.
It’s maybe too exciting yet to talk about taking advantage of the situation to save tax, but here’s a couple of ways in which those nasty tax bills can be reduced because of the lockdown –
1 . If you have a Limited Company – consider changing your financial year end.
If you have been closed then it’s extremely likely you have lost money whilst shut. You will be able to use that loss to reduce your tax bill and by changing the year end may be able to increase that loss!
2 . Reducing tax bills from previous years and getting a refund
This for the self-employed as well.
Before the last budget, you could use a loss to reduce last year’s tax bill.
Now you can go back 3 years (temporarily) so if you use up last year’s profit, you can claim against the year before that, or even the year before that one.
Would reducing tax, or a refund, help your business?
Do you know someone who can work out the sums to see if this will work?
Are you just too thrilled at being open to be bothered?
Here’s a man working out tax refunds on his phone in a beer garden whilst his PA shelters him from the sun.
If you want me to help you to save tax in a pandemic, call me on 07834 049316 0r send me a message and I can call you back when you are ready to talk about reducing your business tax bill.
