the art of saving tax for startups by pjw accounting
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The Art Of Saving Tax For Start-Ups - Presentation By PJW Accounting at Stafford One2Three Club #123Club - 9 December 2014 - #startupsTRANSCRIPT
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‘The Art of Saving Tax’
By Paul Woodcock BA (Hons); FCA
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Who am I?
• Chartered accountant • Amateur photographer • Insanity devotee • Amateur Gardener
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What makes a great night for me?
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Corporation Tax• Profits of £30,000• Total tax due = £6,532
• Incorporate – total tax due £4,944
• Tax saved = £1,588
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But what about everything else?• Using the family to save tax
• Wife’s wages – tax saved £2,000
• Can you employ the children?
• Split the share capital – tax saved £2,500
• Use of home as office – Licence Agreement tax saved - £400
• Use old van with FPCS – tax saved £300
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VAT• Not currently VAT registered• Inputs of £2,350 not being claimed
• Set up a VAT registration – tax saved £2,350
• Bonus – he looks like a bigger business• Double Bonus – application for FRS saved £3,250
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Capital Gains Tax• Couple own a rental property• Previous accountants never asked about CGT• But CGT rules due to change
• Tax due if selling after 5 April - £10,250
• And property only in husband’s name
• As a result of our meeting property sold before April and couple saved £10,250
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Inheritance Tax• Total estate worth over £700,000
• But no will in place
• Husband owned everything
• No additional tax due but part of estate was at risk of being placed in trust leaving wife short of funds
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Total savings from eveningIncorporation 1,588 Wife’s wages 2,000 Split shares 2,500 Use of home as office 400 FPCS 300 VAT registration 2,350 FRS 3,250 CGT 10,250 Total 22,638
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Who would I like to connect with?• Saving are applicable to all businesses
• But accountants not good at saving CGT• Estate Agents• Surveryors• Architects
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‘Thank you for listening’