Tax - a word that we wish it didn't existed. Since it exists, businesses and entrepreneurs need to pay attentions to the benefits and deductions available in order to reduce tax liability.
Here are some tips on how to save your business money:
1.A common and practical way of sheltering more of your income from being taxed is to invest in your future. The easiest way is to contribute to your retirement account.
2.You can split advertising and promotion costs with neighbouring businesses. You can jointly promote a sale or share mailing lists. You can even split the costs of a promotional banner.
3.If your children are at an employable age and pay their own taxes, you should hire them to take advantage of their lower taxes.
4.If you run your business from home, you can deduct a portion of your rent or mortgage interest and utilities as a business expense.
5.You can order the checks for your business from a printing company. It costs less than getting them from a bank.
6.Expenses for commuter train or bus ticket, mobile phone or computer can be paid through the business.
7.Filing Tax Returns on time will help you avoid surcharges.
8.Paying taxes on time will help you avoid interest.
9.Register your business for Value Added Tax ( VAT ) if possible. This will help you reclaim VAT on whatever you buy.
10.You could change your business structure from a sole trader to limited company. The Limited Company will help you save by paying Capital Gain Tax at 33%. With the sole trader structure you pay Income Tax at rates of 41% plus PRSI plus Universal Social Charge.
This are only 10 tips to help you save money on your taxes. Take into consideration that there are many other tax-saving strategies and deductions that can be utilized depending on your situation.