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We've scoured the web to get you the most up-to-date advice which includes the most useful tools on offer from the officials themselves.

Effective tax planning is essential if you are to minimise your tax bills. Simple tax planning can significantly reduce your tax liabilities.

The self-assessment tax return is an unavoidable burden if you are liable for self-employed tax or have complicated income tax affairs.

Corporation tax is charged on a company's profits. If you trade as a limited company, ensure that paying this tax is as painless as possible.

National Insurance Contributions (NICs) are payable whether you are self-employed or employed by your own company, although different rates apply.

As well as your legal obligations, you’ll want to ensure that payroll is painless and that you use any opportunities to improve your tax-efficiency.

VAT

Effective VAT planning aims to ensure that VAT is relatively painless, and that you are reclaiming as much as possible of the VAT you pay.

Capital gains are made when you sell something for more money than you paid for it. As a result, you can be subject to tax. Take professional advice.

Business property taxes apply to businesses with commercial premises.There are two commercial property taxes: business rates and stamp duty land tax.

If you have tax problems or face a tax investigation, it pays to seek professional advice and you must act rather than just hoping for the best.

SME optimism rises as COVID-19 restrictions are eased

18 May 2021

New research has found that UK small businesses are now more optimistic than they were before the coronavirus pandemic.

As lockdown restrictions continue to ease across the UK, research from Barclaycard Payments has found that small businesses are predicting a 9.8% rise in revenue this quarter compared to Q1 2021.

The survey, which polled over 670 senior staff working in UK SMEs, shows that business sentiment is starting to look more positive, at 110 points out of a possible 200. This is up from a low of 79 points in Q2 2020, and means that small firms are back to the same pre-pandemic sentiment levels last seen in February 2020.

Another positive indicator is that 85% of small businesses say they are planning to invest over the next 12 months - in people, new equipment or technology and by ramping up their marketing. Almost half (47%) say they expect to increase their staff over the next year.

The rise in optimism is especially high in hospitality and leisure as businesses reopen after the long third lockdown. The findings show that hospitality and leisure SMEs anticipate revenue rises of 21% as restrictions continue to be eased. Looking ahead, small firms are forecasting an 18% increase in revenues a year from now, with the hospitality and leisure sector expecting a 42% boost. Many SMEs have an optimistic (33%) or neutral (40%) outlook for the UK economy; but that increases to 51% optimistic and 36% neutral about the prospects for their own businesses.

Despite signs of optimism, potential challenges remain for the coming months:

  • 37% of businesses polled expect customers to hold back their spending until 21 June;
  • 33% worry that people now prefer to socialise and eat at home;
  • 34% are concerned that customers will tire of social distancing measures.

Even so, the results of the poll show that hospitality and leisure SMEs are prepared for returning customers, with the majority having invested in hand sanitiser, signs to remind customers about social distancing rules and PPE for staff. They are also looking at ways to boost revenues including increasing prices (21%) and improving outdoor spaces (16%).

Rob Cameron, ceo of Barclaycard Payments, said: "With the confidence to plan ahead, small businesses have turned their attention to bulking up their workforce, as well as investing in technology and marketing. We're looking forward to seeing this confidence translate into sales."

Written by Rachel Miller.

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