This is how you reduce the tax if you have made a profit in your limited company
So, what's up? First and foremost, it is important to keep in mind what you pay tax on and Payroll Tax NSW. Of course, this is the result of the year. In other words, there are no magic tricks to take. Without estimating the difference between the year's revenue and the year's expenses. Overall, it is thus a smart starting point to try to reduce this gap, ie the profit. Intuitively, this can mean increasing the year's costs, or reducing its revenues.
Here are 6 concrete tips!
1) Try to find costs that you may have missed ! Do you have e.g. had the office at home, you have the right to bear this cost at the company. Have you used the private car in the service? In that case, you are entitled to mileage compensation. Furthermore, it is good to keep track of the allowances and look for lost receipts.
2) Do you have a cost that pertains to the current year, but which does not come until next year? For example. fees for auditors and costs for financial statements ? Such accrued costs reduce the result if they are included already this year!
3) Review whether customer invoices were sent out last year but which refer to next year - eg invoices sent before the work is completely ready. If you want, you can wait to send these invoices to next year and thus get this year's results down.
4) Adjust the salary! If you have the opportunity to take out a higher salary in December so that the main rule for dividends becomes relevant, this is an excellent and simple solution for reducing the tax.
5) Tantiem! - This relatively unknown word basically means that you take out the salary for the coming year for one year. This is especially a good idea if you think that you will make a worse result next year but still want a salary then.
6) Accrual fund ! You have the right to set aside part of the profit in a so-called accrual fund. This means that part of the profit is not taken up for taxation in the year the profit was made. Instead, one year when the company is doing worse, you can produce this part of the profit then. You can easily say that you can set off / even out a little better years with a little worse years to have a fairer tax burden.
That said, no miracle methods, but maybe these tips will help in any case so that no unnecessary thousands are paid.
Here are 6 concrete tips!
1) Try to find costs that you may have missed ! Do you have e.g. had the office at home, you have the right to bear this cost at the company. Have you used the private car in the service? In that case, you are entitled to mileage compensation. Furthermore, it is good to keep track of the allowances and look for lost receipts.
2) Do you have a cost that pertains to the current year, but which does not come until next year? For example. fees for auditors and costs for financial statements ? Such accrued costs reduce the result if they are included already this year!
3) Review whether customer invoices were sent out last year but which refer to next year - eg invoices sent before the work is completely ready. If you want, you can wait to send these invoices to next year and thus get this year's results down.
4) Adjust the salary! If you have the opportunity to take out a higher salary in December so that the main rule for dividends becomes relevant, this is an excellent and simple solution for reducing the tax.
5) Tantiem! - This relatively unknown word basically means that you take out the salary for the coming year for one year. This is especially a good idea if you think that you will make a worse result next year but still want a salary then.
6) Accrual fund ! You have the right to set aside part of the profit in a so-called accrual fund. This means that part of the profit is not taken up for taxation in the year the profit was made. Instead, one year when the company is doing worse, you can produce this part of the profit then. You can easily say that you can set off / even out a little better years with a little worse years to have a fairer tax burden.
That said, no miracle methods, but maybe these tips will help in any case so that no unnecessary thousands are paid.