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Give your business a financial fix!

Follow these 3 simple steps to make your hair and beauty business more tax efficient – so you can keep more of your hard earned cash.

3 steps to a more Tax efficient & profitable

Hair & Beauty Business

Claim tax relief on things you buy for your business

In order to have a more tax efficient and

profitable business, you need to keep your

costs and expenses to a minimum. One

way you can do that is by claiming for tax

relief on items, products, services etc that

you buy for business purposes.

When setting up as a Sole Trader, you

can claim tax relief against your profits

for items you bought and used in your

business, even if you bought them before

you started trading. So make sure you

keep your receipts!

Remember that you can put your mobile

phone into your business name and all

costs of the phone will then become

deductible against your tax bill.

If you work from home, you can also claim

a deduction against your tax bill to cover

part of your home running costs.

Here is a guide to the kind of

things you can claim tax relief on:

• Products Shampoo, oils, sprays etc

• Equipment Scissors, chairs, massage tables etc

• Property Rent, rates, heat, light etc

• Laundry Towels, uniforms etc

• Advertising / Marketing

• Stationary Paper, pens, business cards, stamps etc

• Staff Training

• Wages

• Phone Bill / Internet

• Travel costs

• Computers / Radios

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Keep proper books and records

To grow a more successful business, you

need to know exactly what’s going on with

the figures in your business. Not only will

this help you to keep track of how much

money you’re making and spending, it will

keep the Taxman happy too. You have to

keep adequate books and records by law,

and the Taxman can fine you if you don’t.

It’s always best to keep on the right side

of the Taxman, something us accountants

can help you with.

To keep proper business books and

records, here’s what you need to do:

• Set up a simple spreadsheet, get a diary or use a piece of bookkeeping software – your accountant should be able to recommend something

• Make a note of EVERYTHING that comes IN to your business from your clients and customers

• Make a note of EVERYTHING that you pay OUT

• Keep every receipt for anything you buy for your business

• Ask for advice if you’re not sure exactly what to do

• Business records should be kept for 6 years and HMRC can request to see them at any time – so keep them safe!

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Maximise your profits and grow your business

There are just 2 ways that you can make

your business more profitable:

1 – Decrease your EXPENSES, or

2 – Increase your SALES

Ask for help and advice when you file your

Tax Return - successful people in business

spend time working on their business, not in

it. They hire accountants to leave them free to

grow their business.

Using an accountant will make your business

more tax efficient and give you more time to

focus on increasing your sales.”

Here are some ways you can

decrease your expenses:

• Avoid fines by meeting financial deadlines and keeping HMRC happy

• Structure your business in the best way possible – If you are established, your business may already have some kind of structure (Limited Company, LLP etc), although there may well be a more tax efficient option

• Claim Tax Relief on money you spend in your business

• Use the most price efficient product and service suppliers

• Don’t waste money on advertising and marketing activities that aren’t going to bring you more business – Learn how to do this properly or get some help!

• Depending on your turnover, registering for VAT could save you money. If you are VAT registered, you could be better off under the flat rate scheme. Your accountant will be able to help with this.

• if you are self-employed and expect to earn less in this tax year than you did last year, you can apply to reduce your payments on account which HMRC ask you to make.

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#TaxOstrich

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Nobody likes a Tax Ostrich!

When it comes to your small business finances, you can’t afford to bury your head in

the sand. Ostrich Accountancy puts business owners, contractors and freelancers in

control of their finances, keeping it quick and hassle free.

As a busy business owner you need to be in complete control of your finances in a

way that fits with your lifestyle and at a price you can afford. Our streamlined service

is built around you, making it quick and easy for you to sort out your accounts on the

go and get back to doing what you do best.

Welcome to accounting the easy way…

To find out more please call

0345 548 4357hello@ostrichaccountancy.co.uk

Tweet @TaxOstrich

www.ostrichaccountancy.co.uk

Don’t be a

#TaxOstrich