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self employed business owners

Self Employed Business Owners Tax Guide

How Self Employed Business Owners Can Pay Less Tax

Self employed business owners are taxed differently to companies. Careful tax planning can help reduce your income tax bill significantly. Self employed business owners are typically:

Many of the tax rules that apply to self employed business owners apply differently to company owners.

Taxcafe has published a unique guide called Small Business Tax Saving Tactics which contains a large collection of tax planning ideas for self employed business owners.

The guide contains details of pretty much all the expenses you can claim including motoring costs, property related costs, home office expenses, staff costs, travel and subsistence and lots more!

The guide also contains details of the pros and cons of using the cash basis and chapters on capital gains tax and inheritance tax planning.

How Self Employed Business Owners Can Pay Less Tax

The main purpose of our tax guide for self-employed businesses is to help you pay less Income Tax and National Insurance on your 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 the self employed business owner will face.