Free Guides for new and growing businesses from HRBS - fixed fee accountants and business advisors

Tax deductible expenses guide to tax deductible expenses Tax deductible expensesThere is a great deal of confusion as to what you can and what you can’t deduct from your profit for tax purposes.

This tip gives a brief list of the types of expenditure you can claim, some of which you may already be deducting, some may be new to you and applicable to your business.

In general, costs enabling you to run the business and are incurred wholly and exclusively for business purposes are tax deductible.
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Maximise use of your basic rate tax band guide to maximising the use of your basic rate band Maximise use of your basic rate tax bandI originally posted this article on the a4uforum in March 2007, and have updated it for the current (2019/20) tax thresholds.

I recommend to all director/shareholder clients that due to the tax changes in recent years they maximise the use of their basic rate band where possible. This can be done by declaring interim dividends to take total taxable income up to the maximum at which the basic rate will still apply. If they do not need the funds, they can loan the dividend back to the company as explained later in this article.

The current (2019/20) tax rates on dividends are:
0% on first £2,000
7.5% for basic rate tax payers
32.5% for higher rate tax payers
38.1% for additional rate tax payers

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