Does anyone here actually own a business? I'm a sole trader. I made 51k profit in 25/26. have a £17k tax bill. 12k to pay by Jan, another 5k by July '27. £2.2k is student finance, another 2k is NI and the rest is Income tax. I never want to pay that much again. I'll be buying my first home very soon and once I've got that mortgage locked in, I'm ready to get creative with my books. Any business owners or accountants here able to tell me how i can continue to grow my business but reduce the tax bill? Obviously I can take plenty of cash and contribute to a pension, but what else?
>>62637770Do not buy a home or property or take out a mortgage if you want to make it. If you want to make it your plan should be to leave the UK to a lower tax destination.
>>62637770>>62637773Use this and see for yourself btw. Renting makes more sense.https://www.buyvsrent.co.uk/
>>62637773I love England and I have an amazing gf who I want to settle down and have kids with. Plus my business is service based so moving away would mean starting from scratch again. Not trying to 'make it' in /biz/ terms, just be comfortable, retire by 60 and fuck hmrc.
>>62637775>>62637775>https://www.buyvsrent.co.uk/Hmmm, site is down suddenly. I changed IPs because I thought it was just me. There are alternative sites though such as https://smartmoneytools.co.uk/tools/rent-vs-buy/ for example.>>62637780Even if you stay, buying early is the wrong move to make. Use a buy vs rent calculator, and you will see. Buy a home later after you've made it.
Hire a tax accountant dumbass
>>62637783Sorry but thats retarded. A mortgage payment is literally cheaper than rent. The kind of property I want would be £1500 pcm to rent or around £1000 pcm on a mortgage. Besides, my gf earns 27k a year and I am never going to convince her to spend half her salary on rent so that she hits retirement with no savings and no house to live in.
>>62637780Now. As for taxes you need to talk to an tax pro for your business, but you can defer business taxes through a few different mechanism.If you incorporate your business, you can set up a pension plan for yourself that you contribute to and write off against business taxes.There is the Small Self-Administered Scheme (SSAS) and the Self-Invested Personal Pension (SIPP). Talk to your CPA, financial planner or do the research yourself to determine which one is best for you, but it will probably be the SIPP.Then there is what is known as Business Asset Disposal Relief (BADR) which gives you a reduced capital gains tax rate of 14% (it can vary from year to year) with a lifetime cap of up to £1 million of qualifying gains.
>>62637799You'll have property taxes and insurance as well to deal with. Plug your numbers into the calculator and see what the end result will be 10 or 15 years from now.
>>62637804Note that BADR is only useful if you're winding down the business, but if it's still available when you decide to "retire" or leave the country, it's a useful part of your exit strategy and a lot of people incorporate it into their plan.
>>62637818Thanks I appreciate it. Will max out pension contributions once mortgage is in place and finances are settled. I'm also on the verge of forced VAT registration, so will have to figure out how to do that. I have an accountant but was hoping this thread might help me with slightly more creative methods business owners use that an accountant wouldn't recommend.
>>62637839>that an accountant wouldn't recommend.Change your tax residency and only live in the UK 5 months out of the year. A lot of UK bros did the Dubai thing, but now are going elsewhere due to the Iran situation. See: https://thejerzgroup.com/
>>62637770you should hire an accountant - a good accountant will pay for themselves easilybut a few things you need to be doing>paying yourself dividends as well as income>counting depreciating assets against profits>claiming mileage>buying everything you can through your businessobviously you need to wait on your mortgage to do the last one>>62637839wtf does your accountant even do?on £51k the most you should pay is approximately6.5k employer ni + 2k ni7.5k income2k student loans (assuming class 2)and that is without any deductions whatsoeveryour accountant is clearly completely useless and isn't helping you whatsoever - you would be better off doing your own books than asking this idiotyou should either tell them to do better or find a better accountant who will do anything at all to help youemployers ni is the biggest anal rape scam when it comes to income in the uk - it means you really do not want to be taking or paying income at all because everything costs 15% tax from £0dividends avoid employer ni but since they are "profits" they come after corporation tax which is between 19-25%, even so 25% + 10.75% as the worst case scenario is better than ~13% eni + 6% ni + 20% it but your corporation tax would be close to or exaxtly 19% anyway>>62637780>I love Englandngmi
>>62637773> genius blublu tax evasion blabla dont buy houseYeah great idea, like moving to Dubai? You get what you pay for smartass
>>62637955he's just a lonley retard fishing for attention. If he's not then he's actually poor and is renting an apartment, not even a detached house
>>62637780Enjoy your divorce.
>>62637780I stayed in Spain because of my family and friends and comfy job at my parent's company. Yes, we're gonna get stolen from. It's for schools and hospitals and rapists.I guess it's a trade-off many are willing to make, for now, but do think for the long term thay maybe one day the equation works differently, especially with kids. I've got a trad wife and two kids, growing up nice in modest isolation (private school etc), still comfy job (I'm an unfireable, essential senior software engineer), building up a great portfolio, but I love my family more than anything else in the world, and if one day I can't find a slime/nog/lowlife-free zone or I'm nervous for their safety, they can fuck this shithole, I'm taking my money and skills and leaving; I'll do anything for them however costly, and have not an ounce of patriotism in me, I've paid enough for slimes and nogs, professional poor, lazy idiots, stupid goyim vote buying and so on; I'm done with this woke society and will only stay in a nicer area with such a ludicrous, extractive tax because of the people I know, if and only if we are left alone.I kinda wish to see it in my life how they mess up with the middle class to the point we leave and Europe crumbles into all the shit it has imported, becoming a giant Venezuela.>>62640816Incels are sad jellies
OI YOU GOT A LICENSE FOR THAT THERE FAT SAC OF PUSSY MATE?
Ugly gf
