There are several options when it comes to extracting profits from your company. Your current situation is likely to determine which option is right for you. With a Director’s Loan, you can pay yourself back money that you have invested in your business without paying personal tax. You can also opt to take a salary from your business.

By keeping this low, you can reduce the tax burden and pay yourself the remainder of your annual income in dividends. Work-related expenses can be claimed back from your business. If a great deal of travel is involved in running your business, you can reduce the tax burden by claiming up milage back without having to pay income or personal tax. You will be able to claim for the first 10,000 miles you travel each year. Once businesses have paid corporation tax on their profits, everything else can be paid out to shareholders in the form of dividends. This keeps salary costs down and is widely regarded as the best way for business owners to earn money in a tax-efficient manner.

Vertiqo can ensure you are taking advantage of the opportunities that might be available to you. These can include a range of tax reliefs, tax allowances and exemptions.

Research & Development tax credits – you may be able to make tax savings if you spend a certain amount on research and development and the size of your company makes you eligible. Patent box – this tax relief scheme could help you reduce the amount of tax you’re paying on profits you’ve earned from patented products and other pioneering ideas. Agricultural Property and Business Property Relief – you could reduce your Inheritance tax liability on property that you own if you’re
eligible for this initiative.

At Vertiqo, we provide a wide range of services related to tax planning. These include tax compliance, which involves preparing and filing your tax return on time and advising you well in advance when tax payments need to be made. We can also help you if you’re the subject of a tax investigation and are seeking in-depth advice. Our tax planning experts can also minimise the tax burden and delay the tax due on your assets as well as your income. We may also be able to help you reduce your liability when it comes to inheritance tax and your estate. We can also help with the management of your estate following your death to ensure your passing on as much of
your wealth to your beneficiaries as possible to your loved ones. Trust taxation advice is also available, and we can simplify the tax legislation around trusts.

VAT management doesn’t have to be as daunting as you might think. Although Vertiqo can complete a host of VAT-related duties on your behalf, there are a few things you can do to make things even simpler. Paying VAT on time is essential for the financial health of your business. Setting up a direct debit can help you avoid missing payments and also means the funds will be taken from your business account automatically. You also need to make sure you’re charging the right amount of VAT. There are four VAT rates, these are exempt, zero-rated, 5% and 20% (the standard rate). It’s also essential that you’re using the correct VAT scheme. Some of the non-standard VAT schemes could be particularly beneficial for your business.