There are simple steps you can take every day which will save you, your employees and your business a lot of money in the long run. Here are 4 tax tips to save you money.
1. Keep all of your Receipts – even the small ones!
Make sure you keep all your receipts – not just the big ones. Small receipts may seem insignificant at the time, but all of those small receipts can add up to a big tax saving. You don’t have to file and number every little receipt on the day you receive it; just pop it neatly in an envelope marked with the month and year of purchase and file it away until you’re doing your books. Think of small receipts as change in your pocket.
2. Save all of your Medical Receipts
You can ask your doctor or pharmacist for a statement if you are missing any medical receipts. Make sure you ask for this information before October as this is a very busy period for statement requests. If you leave until late in October, you might not get your medical receipts in time to include them in your tax return. Also, if you have had any major dental work done, make sure you ask your dentist for a MED2 Form which can be used to reduce your tax bill.
3. Reward Your Employees with a Tax-Free Bonus
A great way of reducing your tax bill is rewarding your employees with a tax-free benefit like a gift voucher. Most employers will give their employees a bonus during the year which can result in a costly tax bill. With the Small Benefits Exemption, Employers can give a voucher to employees tax- free at any time of the year as long as it doesn’t exceed €500. It is limited to once per year per employee.
4. Avail of a TaxSaver Scheme (Employees and Directors)
The Travel Saver Scheme and the Bike to Work Scheme are great ways for business owners and their employees to save money on their tax bill. Under the TaxSaver Commuter Ticket Scheme, employers can provide tickets to employees (or Directors) as part of their salary package or in lieu of an annual bonus. Employees effectively get the tickets tax free and employers save on Employer’s PRSI payments.
The Cycle to Work Scheme also offers a tax incentive to employees and employers, whereby an employer purchases a bicycle and equipment for an employee without it constituting a benefit in kind. An employer and employee can also agree a salary sacrifice to cover the cost of the bicycle and equipment (maximum cost €1,000) over a certain period.
Those are just 4 tax tips to save you money. To find out more ways to reduce your business tax bill, call us today to arrange your consultation – 021 240 9120.