Peak Accounting

Peak Accounting Peak Accounting is a Local Staffordshire based, modern accountancy service for sole traders and smal businesses.

We all want to pay the correct amount of tax but we don’t want to pay more than we have to. So lets deep dive tax effici...
27/03/2025

We all want to pay the correct amount of tax but we don’t want to pay more than we have to.

So lets deep dive tax efficiency for limited companies..

🎯 1. Claim every expense
Every £3 bus ticket and £2 notepad adds up. HMRC’s “wholly and exclusively” rule says if it’s 100% for business, it’s a claimable expense. Don’t forget industry-specific items, pension contributions, and professional insurance!

🎯 2. Pay yourself properly
You’re the boss, but your business is separate from you. For 2024/25, pay yourself a salary of £12,570 annually for maximum tax efficiency. Need more? Take dividends—but only from profits!

🎯 3. Shop smart
Need a laptop, phone, or even new premises? Buy through your business and take advantage of the Annual Investment Allowance. Write off up to £1 million on eligible expenses!

🎯 4. Surprise HMRC
Pay your Corporation Tax early, and HMRC might owe ✨you✨ interest. Yep, you read that right.

🎯 5. Give back
Donate to charity through your business—it reduces your Corporation Tax bill AND does some good. A win-win!

🎯 6. Explore tax relief schemes
From R&D to the Patent Box and Creative Industry Tax Relief, there are loads of schemes to help you save. If you’re eligible, use them!

✨ The secret to tax savings? No secret, just smart planning and tracking your expenses every month.

Ready to take control of your taxes? Let’s chat. 🤝

Trivial benefits allow you to provide small perks to yourself (or your employees) paying for the goods through your comp...
26/03/2025

Trivial benefits allow you to provide small perks to yourself (or your employees) paying for the goods through your company, without paying tax or National Insurance, provided certain conditions are met (keep reading) it’s also tax deductible for corporation tax so a win win win.

How Trivial Benefits work:

✨The value must not exceed £50 (including VAT): If the cost goes even a penny over, the entire amount is taxable, so it’s essential to stay within this limit.

✨ The benefit cannot be cash or a cash voucher: While you can’t use trivial benefits for cash gifts, you can purchase gift vouchers or items as long as they aren’t redeemable for cash.

✨ It must not be part of your contractual obligations or a reward for work: Trivial benefits are intended as perks, not as compensation or performance bonuses. This means you’re giving yourself a treat, not something linked to company performance or productivity.

✨ The total annual cap for directors is £300: Directors of a company can claim up to £300 in trivial benefits each tax year. This is essentially 6 x £50 benefits.

Top tip 💡 once you’ve spent the money that you’d like to use trivial benefit tax relief on, when doing your bookkeeping update the description to include “trivial benefit”. You can either code it to staff welfare, or setup a specific code called trivial benefits, so that you can keep track of how much you’ve spent during the year.

As we approach the end of the personal tax year, here are some super simple quick tick tasks, which can help you extract...
04/03/2025

As we approach the end of the personal tax year, here are some super simple quick tick tasks, which can help you extract up to £60,800 from your limited company, completely tax free which could save you up to £15,075 in corporation tax this year. 🚀

These are my top tax tips to action by 31st March 2025:

1. Max out your pension contributions: Paying into a private pension is tax-efficient because you’ll reduce your company’s taxable profits and therefore your Corporation Tax liability. For the 2024-25 tax year, the pension allowance is £60,000, meaning you can add £60,000 into your private pension without paying any income tax, and you’ll save up to £15,000 in corporation tax by reducing your taxable profits

2. Claim your £300 trivial benefit allowance: As a director of a small business (with less than 5 shareholders) you can extract £300 from your business completely tax free, per director.

3. Salary structure: if you’re setup for a directors only payroll, don’t forget to review your directors salary for the upcoming tax year (if you’re a client of ours, we’ve already got in touch on this)

4. Claim your £500 dividend allowance: don’t forget that included in your dividends for the year, you have a tax free dividend allowance which for the 2024-25 tax year is £500

5. Review upcoming expenditure for capital allowances: in the UK we have lots of tax incentives to invest in certain assets this year (hello “full expensing”) so if you’re planning on purchasing assets within your business, you might like to consider purchasing them before 31st March 2025 to get up to 100% tax relief in this financial year.

6. Book a financial MOT: pop time in your accountants diary to take a deep dive into these before the end of the tax year.

If your accountant doesn’t provide this level of strategy for you, you’re missing out. To join our exclusive roster of clients get in touch with Peak Accounting.

Are you looking for a local, modern and fixed fee accountant in Staffordshire or the midlands?Peak Accounting are you lo...
04/03/2025

Are you looking for a local, modern and fixed fee accountant in Staffordshire or the midlands?

Peak Accounting are you local experts.

Address

The Old Bakehouse
Burton-Upon-Trent
DE138SF

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

Telephone

+441283365014

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