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self employed business owners

Self Employed Business Owners

How Self Employed Business Owners
Can Pay Less Tax

This article was published in 2012 and the content may now be out of date. For the latest information please click here: self employed business owners.

Self employed business owners are taxed differently from companies. Careful tax planning can help reduce your tax bill significantly. Self employed business owners can be:

The tax planning techniques we will cover are not for company owners. Many of the tax rules that apply to self employed business owners apply differently to company owners.

We decided that it would make for easier reading if the target market was focused. Having lots of qualifiers and special rules for company owners would muddy the waters.

However, in the final two chapters of "Small Business Tax Saving Tactics" we explain the benefits and drawbacks of converting an unincorporated business (i.e. a business owned by a sole trader or partnership) into a company.

How Self Employed Business Owners Can Pay Less Tax

The main purpose of small business tax saving tactics is to help self-employed business owners pay less Income Tax and National Insurance on their profits.

Most of the chapters will show you how to claim more tax deductible expenses or bigger tax deductible expenses. Expenses are vital in business tax planning because, in simple terms, taxable profit for self employed business owners is calculated as follows:

Taxable Profit = Income less Tax-Deductible Expenses

So the bigger your tax deductible expenses, the lower your taxable profit and the smaller the tax bill self employed business owners will face.


This article is an excerpt from:
self employed business owners Small Business Tax Saving Tactics

This brand new, unique tax guide is essential reading for ALL self employed business owners (sole traders, partnerships etc) who want to pay less tax.

Click here for full details: self employed business owners guide.