You can save a considerable amount when running your business if you use tax reliefs. It is integral that you consider the taxes applicable to your business to find out whether you are eligible for some reliefs. To benefit, you need to have a deeper look into the legislation that enables businesses acquire tax reliefs.
Your business may be eligible for Returns on Income Tax, which is a legislation that allows small businesses to be taxed at lower categories but have their tax reduced by two percentage points on other categories. You might find your business qualifies for this tax break, hence you shouldn’t ignore it. Through this tax break, you will definitely find an avenue to get more revenue for improving your business.
When a business owner has passed away and the next of kin has taken over, the new owner will be eligible for the Death Tax elimination. Previously, the new owner had to pay a percentage of the total value of the assets passed on in taxes. If you qualify for this exemption, you could have more money left for other expansion programs.
You could also be eligible for dividends and capital gains which could save you a lot in taxes. If you owned a business back then, you were required to pay taxes as a business and personally. The double taxation that resulted from the process can now be solved through implementing the dividends and capital gains tax break. This will give you a relief and enable you to save more money for other uses to boost business.
Nowadays, there are tax incentives that have been put in place that could help grow your business. One such incentive is the increase in the depreciation rate of new assets acquired in the first year of business up to 20%. These changes in tax regulations will enable small businesses to retain a considerable amount in profits and this will boost growth.
As a business owner, you might not be exposed to all the information there is regarding to business laws, especially taxation. It is, therefore, mandatory that you go through these laws to understand what is taxable and what isn’t. At the end of it all, you will understand taxes better and eliminate instances of double payments.
In order to avoid an instance where you are not sure of the taxes applicable to your business, you will need the services of an accountant. Since accountants have specialized in taxes, they will help you understand taxes that you are eligible for and those that you aren’t supposed to pay. When you have an accountant, you can be sure to get your taxes right as well as have more time to focus on more important things.