Tax planning is an essential element of running a successful business. As your business grows organically you will find many new operational and financial pitfalls that can catch you off-guard. The secret of effective tax management is to plan ahead and follow a tax strategy based on your company’s unique circumstances.

The best way to cut your overall tax burden is to plan ahead. There are many methods a business can use to reduce its annual tax obligation to HM Customs & Revenue – we at Fast Formation can help identify and exploit these methods. Our pool of UK based accountants and tax-experts can help your business apply current UK and European tax legislation to create the most effective tax strategy for your company.

2. Make use of Individual Savings Accounts. From April 2010 onwards, ISA limits have been raised to £10,200. £5,100 of this can be saved in cash.

3. Rent out a room in your house. Renting out a furnished room in your own home lets you keep a certain amount of the rental income tax free.

4. Incorporate your business. Small business owners operating as a partnership or sole traders paying an income tax rate of 40% or more will see significant savings if they incorporate as a Limited Liability Company. Corporation tax is currently at 21% on profits up to £300,000, and a properly structured remuneration policy can reduce this even further.

These are just a few methods that highlight some of the tax saving measures our clients can employ. If you are interested in making tax savings for your personal or business income without having to decipher detailed tax legislation, get in touch with our accountants on Fast Formation today. We offer tax advice to all our clients regardless of business size or complexity. At Fast Formation we do our best to ensure that each client pays only as much tax as they are legally obliged to and not a penny more.