Five Tax Tips For Business Owners

Tax is a complicated business to say the least and most business owners need professional support to fully appreciate all the options open to them. With this in mind, our round of five top tax tips here provides you with some business and personal tax issues you may like to raise with your professional tax advice team.

1. Gain advice on how you pay yourself

Business owners can profit from professional advice to understand the different arrangements they are allowed to use when it comes to their own salary, dividends, bonuses and loans. You may be able to manage your contributions for tax and National Insurance more effectively by changing your existing arrangements.

2. Ask about the new capital allowance regime

This allows a 100% writing down allowance for the initial expenditure up to £50,000 on certain capital items during one financial year. Discuss whether co-ordinating necessary capital expenditure with your business year end would be to your advantage. It could be possible for some or all of the applicable capital expenditure to be set against the profits for the year. It will depend on the type of expenditure and of course, this is very much area in which you’ll need expert advice.

3. Ask to review your VAT arrangements

Many entrepreneurs are not aware that even though they operate below the VAT threshold, it is still in their interests to register. Broadly speaking, this can be a worthwhile move when your customer base are all registered for VAT. There are other circumstances in which it would also be to your advantage; again professional input is essential. For those businesses who are VAT registered, a review is still important. Ask about flat rate schemes. Depending on the nature of your purchasing, you may find you are paying more tax than you might otherwise need to.

4. Start an ISA during April

The maximum contributions you can allocate to an ISA for the 2011 to 2012 are set at £10,680, an increase of £480 on the previous year. For a couple, this means a total of £21,360 can be invested without attracting Capital Gains Tax (CGT). Although an ISA might not perhaps seem as exciting as other more complex investments, it is certainly a reliable source of tax free funds in the medium to long term.

5. Ask about tax free gifts.

There are set tax rules on the amount and nature of gifts that you can make, for example, gifts to your partner, to your family, to charity and so on. There is also some provision for gifts that form part of your ‘normal expenditure’. Ask your tax advisors about which gifts are tax free. You may find you are unaware of ways to further provide for your family or favourite charity without incurring tax.

Although most people will have probably heard of the ISA, there are a number of other provisions within tax law which business owners are sometimes surprisingly unaware of. Mention these brief tips when next consulting your tax advisor – you could find that you are paying more than you need to.

How to Decide What Is the Best Online Business To Make Money Online?

Every day thousands of people start a new journey on the internet – a journey to make money online. At the same everyday thousands of people quit their online ventures because they couldn’t make any money online from their businesses.

The success rate at internet marketing is barely 5%, which means that about 95 people of the 100 who started an online business fail and quit their businesses.

  • Why is the failure rate so high?
  • What is the reason for so many people failing on internet marketing?
  • What business is the best to make money online?

These are questions that you will have in your mind when you venture out to start an online business. Let’s find answers to these questions.

People fail at something because they do not have a fool-proof plan. In fact most people do not even have a plan. They just wake up at the wrong side of the bed one day and decide that they need to do something and set off to do it. Will they succeed? No, they will never.

This is precisely the case with internet marketing as well. People consider internet marketing to be a cakewalk and just set out to start an online business without any real plan. The result – failure.

95% of the people starting an online business do not really think that they are starting a business. A conventional business requires a lot of investment and a lot of planning. Since a conventional business has an investment in monetary terms attached to it, people tend to consider it serious and give it the attention that is required.

But an internet marketing business does not require an investment. There is no monetary risk attached to it and hence planning gets the least importance.

In order to be successful in Internet marketing, you need to take it seriously and treat it with the same conviction and honesty that you would have treated a conventional business with.

Now you will have realized that irrespective of what kind of business you are getting into on the internet, you will be able to make a lot of money, if you are serious about the business and if you have planned things well.

People who have expertise in some field or, the other start online business based on their expertise. For eg: there are lots of people who offers services like web designing, SEO, Social media marketing etc. But for people who do not have a service to offer, there are other things like blogging and affiliate marketing that can help them to make money online.

Affiliate marketing is something that is the easiest to start and also helps make a lot of money online. If you can follow instructions and ensure that you do not deviate from it, then affiliate marketing is the way forward.

Finding A Mentor For Success In Your Online or Home Business

When finding a mentor for your business you should be wanting someone with experience. Someone who has been in the industry for a few years and is successful because online it is very unlikely people make money in the first few months. You have to be careful if a mentor claims they made a lot of money in the first few months because before you make a real income online you need to have the knowledge.

In order to gain knowledge a degree of studying will be required. Finding a mentor would not be difficult as many people will be happy to take your money. What you want is someone who has invested in some courses to improve their knowledge of the online industry. In addition to this they also should have invested in themselves. You can do this by studying self help materials and motivational literature. A mentor is someone who had knowledge in all aspects of life, not just online business. By improving your knowledge you will find a mentor to be very patient, relaxed and remarkable person. Having the right mindset is vital for your journey online.

My last factor is trust when finding a mentor for your online business. Trust is probably the most important factor in search for an online business mentor. If you trust the mentor who you are working with, even though you may not make money straight away, you have the belief that they can help you. Your mentor will guide you through various marketing avenues and teach you from setting up your business, to blogging, creating back-links and finally teaching you how to market your business correctly. Do not be disheartened if a specific method is difficult for you, feel free to contact your mentor when you need help. However it must be understood that your mentor can teach you whatever you need to know, but they cannot do the work for you.

It is important that when you work with your mentor you also take actions to improve your knowledge and work with them one-to-one. This way you will receive your coaching and learn a lot faster than on your own. When finding a mentor it does not matter if you decide to promote a product online or a business, which you may be affiliated to. The concept of making money online is all the same. A mentor will have a global team and probably have the resources for you to learn from. This will save you time and money, looking for the correct materials and investing further.