Tax Planning for Sole Traders and Partnerships

There are many tax strategies available to proprietors of small businesses, effective planning can be successful in reducing tax burdens especially where accountancy training and development has been in place. Tax planning is the systematic analysis of differing tax options aimed at the minimization of tax liability in current and future tax periods. Paying of dividends, the timing of a sale of an asset and when to pay expenditures are just a few examples of tax planning.

Carl Bayley of Park Seminars LTD who offer accountancy training and development courses suggests that "sound knowledge of tax planning and efficiency can help any business relieve the tax burden, both during and at the end of business". In his seminars Carl proposes that small businesses must focus on selecting the right accounting data to ensure they pay the minimum amount of tax. There is also another dimension to tax planning; this is the choice of form of the business, for example as a sole trader or partnership. The form of a business can dramatically change the level of tax being paid, and good use of business and accountancy training can aid small business to make business savvy decisions for the direction of their business whilst also managing expenditure. One method as explained by Carl is "By running your business through a limited company you can save tens of thousands of pounds in tax and national insurance", but this is just one option.

Tax and national insurance increases announced in the April 2009 budget mean businesses can produce even bigger tax savings in the years ahead when tax efficiency advice is implemented correctly. So tax planning really can be used to full advantage in the present and future.

Park Seminars LTD is offering seminars across the North West between July and December 2009 on this topic along with a wide range of other topics under the accountancy training and development heading. For further information visit parkseminars.com.