Monthly Archives: July 2021

Hot Business News Today

Tax savings when purchasing company cars

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By Jamie Wooldridge on Small Business – Advice and Ideas for UK Small Businesses and SMEs
Question:
I am in business as a sole trader and need to purchase a new vehicle. Although I have the funds to purchase one outright, I want to buy the vehicle in the most tax efficient way. Please can you advise what would be the best option. In particular, if I choose to get a vehicle using a PCP, can I treat the entire monthly payment as an expense to reduce profit and hence tax?
Answer:
As a sole trader you have two different options for how you treat any car used in the business. You can either claim ‘simplified mileage expenses’ or claim the actual costs of business usage of the vehicle.
Simplified mileage expenses
As the name suggests this is a straightforward method of claiming for the cost of usage of the vehicle. You can claim 45p per mile of business usage for the first 10,000 miles in any year, and 25p per mile thereafter. It’s worth noting that business mileage excludes travel from home to your usual place of work. Records should be kept documenting the amount of mileage being claimed.
The 45p per mile rate is intended

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Hot Business News Today

Best small business loans in the UK

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By Partner Content on Small Business – Advice and Ideas for UK Small Businesses and SMEs
As a small business owner you might be thinking about loans as a way of starting or growing your company.
Unfortunately, loans are notoriously complicated, riddled with complex terms and teeny tiny small print. Let us demystify the process and show you some of the best small business loans around.
Is a small business loan right for me?
It depends what type of business you have, how developed you are and what you need the loan for.
For example, some loans aren’t great for seasonal businesses as making repayments during off-peak times of year will be challenging.
In this case it’s worth considering other funding options like friends and family, crowdfunding, incubators, venture capital, small business grants or switching your business bank account. Check out our rundown of the best business bank accounts open to UK SMEs.
If you want to go ahead, you can do a few things to improve your chances of success. Make sure you’re as clear as possible on how much you need to borrow and what exactly the loan would be used for. Work the loan into your business plan and have a cash flow forecast

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