Paying too much tax is bad. Paying your fair share is good. Black and white statements don’t come much truer than that but as we keep finding, people, honest people running good businesses to help their families, are regularly giving more than they need to. Put another way, more than they should. There are many reasons for this but just like a building inspector looking at a house that may be hiding a few issues, we here at Inspire often find that there are structural faults. Structural problems are always expensive – in buildings and especially when building a business.
We often talked about the importance of choosing the right business structure for you before setting out to change the world. If you do this you may well avoid paying a whole lot of tax that you didn’t have to pay during the all-important start-up phase. If you realise you’ve taken a wrong turn during your commercial journey, it may still be best to turn back and get on the right structural path. Sure you may have paid too much during the proceeding period but paying a price to stop the (cash flow) bleeding can still be a lifesaver.
Full disclosure: we like trusts because they work for our particular set of circumstances in that they:
Aaah, strategy! That’s the thing. You can have the best tools ever but if you don’t know how to use them, you could end up hurting yourself… or your business.
It’s important that we get this right so we go live on facebook Wednesdays to do open Q&As and talk through important business solutionsfrom 12.30pm. Don’t just think of this as some one-way, free advice. This is your chance to interactively learn and explore ways of improving one of the must-haves in business. Cash flow optimisation. A lot of businesses are giving away half, that’s right HALF of their profits in tax because they don’t know any better and no one’s shown them how to remedy that.
If that’s you or you think this may be you, feel free to join our regular Wednesday lunchtime conversations or simply check out the content we post daily.
If you’re a small business with questions around structures or other accounting related matters you would like some clarity on, just ask us – we’d love to help.
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Your friends or family will thank you later.