Pro Installer April 2022 - Issue 109 | Page 61

Business
Read online at www . proinstaller . co . uk
APRIL 2022 | 61

Business

About the author
Benjamin Dyer is CEO and co-founder of Powered Now . Powered Now ’ s mobile app aims to take the pain out of paperwork for individual installers and small companies , as well as other trade businesses .
These must be used in your business so you can ’ t claim for a new TV or washing machine . Anything used for education and training isn ’ t allowed along with anything that will last for 20 years or more . So land is also disqualified .
Unfortunately , this is a very complex area . There are different types of capital allowances , the government likes to manipulate these to create the economic behaviour that it wants . Sometimes you need to keep track of a “ pool ” of assets and charge against this over several years . However , there can be some decent saving on your tax . This is where help from an accountant is needed . Or alternatively you need to be really committed to learning a lot about the subject .
Tip 4 : Keep the taxman at bay
Penalties are charged for late PAYE , VAT and the annual self-assessment or corporation tax returns . In addition , you will be charged interest if the late return means you pay taxes late .
Once your sales for the last 12 months go past £ 85,000 you must register for VAT and charge your customers VAT for all subsequent sales . Get this wrong and you will have to pay HMRC VAT on your sales even though you never saw the money from your customers .
CIS returns also have a strict penalty regime that can be very painful .
All in all , penalties are to be avoided at all costs . They could lead to an HMRC investigation which would lead to a world of further pain . Best to do everything by the book in the first place .
Tip 5 : Use professionals
Your time may be better and more profitably spent doing the job and running the business rather than messing with the books and tax . So , it may be worth using a bookkeeper . Also , your trade body or association may be able to provide some good advice . Some industries have special allowances approved by HMRC , like uniform allowances . Your trade body is on your side so they will be worth consulting .
Remember that tax is complicated , particularly for the trade industry . Really , consulting an accountant can be expected to save more time and money than it costs . Certainly , consult an accountant at least once to help to set you off on the right track .
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