Ten ways to keep your income your own (From Worcester News)

Ten ways to keep your income your own

10:00am Tuesday 10th January 2012 in Biz By Mike Pryce

SMALL businesses across Worcestershire are being urged to make a new year’s resolution to protect their hard-earned income in 2012.

Mike Tombs, who runs Tax-Assist Accountants in Worcester, said: “Local businesses know how tough it is out there and the climate is unlikely to change any time soon. Anything they can do to protect their income, by avoiding penalties from the taxman and claiming everything they’re entitled to, is absolutely vital.”

He has put together a package of 10 top tips for Worcester’s small businesses to consider. They include: Making your e-mail/mobile phone an “early warning” diary for tax deadlines – not missing the January 31 deadline for self- assessment tax returns saves a fixed penalty of £100; Receive up to half the minimum wage for the first six months for any new staff, through the new youth contract for jobless young people; Where eligible, take advantage of the new 50 per cent tax relief on initial investment if you’re director of a start-up company, under the Seed Enterprise Investment scheme; Apply for an employer’s National Insurance contributions holiday: up to £5,000 for each of the first 10 employees is available in some regions; Check the rateable value if you operate from single premises – you could be eligible for up to 100 per cent rate relief; Claim tax relief on any losses, if you’re a partnership or sole trader; If you’re operating as a sole trader or partnership, consider whether incorporation is a better way of trading.