You don’t want your small business to be crippled by rising tax prices, do you? No, of course, you don’t, which is why you should aim to bring these expenses down to the bare minimum. The less you spend on your tax, the more money you will have to invest back into the future development of your startup. Ultimately, this will provide you with the robust financial platform you need to truly scale your market going forward.
Here are four ways you can reduce your small business tax expenses:
1. Invest in electric vehicles
You are advised to invest in electric vehicles for a number of reasons: they’re better for the environment, they aren’t penalized by congestion charges, and they aren’t considered taxable. By making the switch to all-electric when it comes to your fleet of company cars, you won’t have to worry about being hit by substantial road tax expenses on an annual or bi-annual basis.
When you decide to invest in energy-efficient electric vans, be sure to check out LoadsofVans.com. Here, you will find all manner of heavy-duty vehicles, each of which offers unrivaled practicality at a cost-effective price.
2. Employ your children
If your children are old enough to work legally and are actively seeking employment, why not give them a job? As well as helping your kids to earn money and potentially forge a career within your sector, you will also be sure to reap a whole host of tax benefits from taking this recruitment route.
When you employ your children, in most states, you won’t be asked to pay social security, Medicare, or Federal Unemployment Tax Act (F.U.T.A) taxes on their wages. This is a legal, effective, and ingenious way to keep your tax repayments down to the bare minimum.
3. Claim back travel expenses
Every time you leave your workspace in order to conduct business externally, you shouldn’t be afraid to claim back your travel expenses. By deducting these costs from your overall tax expense report, you will have the capacity to only pay tax on the elements of your operation that actively help you to turn over a profit.
4. Change your business structure
Unbeknownst to you, your business structure may be bleeding you dry from a tax point of view. Even worse, it might be doing this unnecessarily. You may very well be operating under a structure that doesn’t benefit your financial foundation in any way, shape, or form. To avoid being blighted by this plight, simply resolve to change your business structure. You could, for example, switch to being a Limited Liability Company (L.L.C), as this will help you to eliminate a whole host of employment tax responsibilities.
Are you steadfast in your desire to consolidate the profit that you work so hard to turn over? If so, you cannot afford to spend more on your tax than is completely necessary. To make substantial savings in this instance, be sure to heed the four top tax tips listed above.
