Tax Breaks
Five powerful Tax Breaks every month. See how much they could save you

October 2008

  • Think green and save tax
    When you are buying new equipment for your business, even basic fittings such lighting, heat pumps or toilets, think about the energy or water they use. If you choose an energy or water efficient item, it could qualify for an enhanced capital allowance. This means you can set the full cost of the new equipment against your taxable profits in the year of purchase. You should check which items qualify.
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  • Be your own business tenant

    Many older commercial properties were originally built with residential accommodation on the upper floors, such as the flat over a shop, or the landlord's living quarters above a pub. If this area has been unused for a least a year, you can claim a 100% tax allowance for the capital costs of converting the empty space into a flat with a separate entrance. The furnished flat can then be let.

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  • Be a flat-rate winner!
    The flat-rate VAT scheme can make you money if your business has few costs and overheads and your turnover is less than £150,000 a year. If you start to use this scheme in your first year of VAT registration, the flat rate you use is reduced by a further 1%, so the savings are even greater. Could this work for you?
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  • Pay a spouse wages to get NI credit and a tax deduction
    If you pay your spouse for their help with your business, their wages could be tax-free if less than £105 a week. However, before the Taxman permits you to claim a tax deduction, he will want to see some evidence that the amount paid is not excessive for the work performed. What do you need to do to guarantee a safe passage for this particular expense?
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