How to Make Tax Savings in 2017

The story of taxes can be summarised under three key terms; the good, the bad and the ugly. The good is the fact it keeps your country up and running, while also keeping you out of trouble with HMRC. The bad is the fact that you have to pay them. The ugly is the sheer stress that the entire experience brings with it. To make the whole scenario a tad bit better, we have complied a list of tips that’ll help you to get to the other side. 

1) Organisation is key
In the UK the tax year ends in April. That means you need to be prepared for that awful time of year, every year. To help you on your way are the lovely people who work as personal tax specialists. However, that doesn’t mean that you can dump all your problems in their lap. If you had any problems in April 2017 sort them out now, because 2018 is creeping up on us all!

To prepare for the tax payments you and your account should;
- Plan when you will sit down and work out the taxes.
- Not leave it too late.
- Keep a record of all your finances.
- Keep all the papers organized in a filling system.
- Separate the personal from the business finances

These tips may not change the amount of taxes you have to pay but they will reduce the money spent on preparing for that crucial time of year. You want to avoid the penalties that come with late payment. Sure you can file a Form 4868 but as any one of the personal tax specialists in Bournemouth will tell you, that requires some extra cash too!

2) Use a software
Computers are there to make our lives easy, so why not take advantage of them? You don’t want to get fined for handling your taxes incorrectly! A payroll tax software avoids the ‘human’ error and will do everything from calculating to filling the taxes for you!

3) Go for the independent, not the dependent
You can make tax savings by hiring independent contractors. This is because you won’t have to pay the ‘payroll taxes’, or provide them with the other benefits that come with hiring staff. Just make sure that your contractor doesn’t fit under the legal definition of an employee or you’ll be in trouble!

4) Take advantage of the ‘dependents’
Did you know that having a child that depends on you can be an advantage? Well it’s true, at least where taxes are concerned. You will get a specified tax exemption for every dependent. Just be careful if you are divorced, the issue gets a lot messier as only one of the parents can claim their children as ‘dependents’!

In the end, remember to pay your taxes on time no matter how exuberant they seem! If you don’t you’ll have to pay them, and the penalties, in 2019. If you have any doubt about the whole issue, search for personal tax specialists Bournemouth.

​Like the post? Great... check out our last post here.