i am a self employed joiner in glasgow. Any tips for reducing my tax bill?

Answer 1

Good advice already given. I can only add - make sure you claim all the applicable business expenses.

I am always amazed at how many clients forget about expenses they pay. The sort of things missed out are -

Postage
Part of your home landline phone, if used for business calls
Parking fees, especially in meters where you do not get a receipt
Washing the business car or van
Trade magazines

You get the general idea? Basically keep your records up to date and record all expenditure related to your business. If there is something which you are not sure is deductible then still write it down and maybe make a note to ask your accountant about this.

I always tell my clients that it is easier for me to go through a list and cross out items which are not allowed as deductions than it is to think what expenditure might have been made and which has not been recorded.

Answer 2

It all depends on your level of profit.........

If your profits are high and increasing then it may be worthwhile incorporating as a Limited company and being taxed at a lower percentage and better tax bands.......There are drawbacks on this however and it can prove difficult to draw money from a Company in the usual way you would as a soletrader.

If your profits are reasonable then a Pension plan may help as this is tax deductible expenditure and its a nice nest egg.

Whichever way you look at it you really should seek professional help from an Accountant who would provide sound tax planning to suit you and your business's individual needs. Yes it may cost a few pounds but could potentially save thousands and I have seen many folk like you lose out for the sake of their fees.

Answer 3

Ask an accountant, they know all the dodges.

Answer 4

if your tools are replaced more than once every two years you can claim for them