Every penny counts when you are setting up and building your business. Small businesses don’t become bigger, more profitable ones by letting small amounts of cash dribble through the financial fingers, and it seems that many small business owners and freelancers need to find out more about the tax allowances available to them, to ensure they are not overpaying on expenses.
Research by a software accounting company has suggested that almost a quarter of a billion pounds worth of expenses, the kind that have small values like £10 or less, are not being claimed by sole traders and very small business owners every year. Apparently, a micro business has on average around £200 of accumulated small expenses every year, but feel they are too much trouble to claim.
Of similar concern is the finding that only 39% of those surveyed that they claimed back ALL their expenses incurred in the line of business and around 5% didn’t claim any expenses at all.
These amounts really do add up, and even if it seems too much trouble to hold on to receipts for small amounts and log them in your accounts, a quick calculation over one year will surely convince you to take time out to ensure you aren’t paying tax on money your business can make very good use of.
A Cornerstone mentor can help advise on financial matters, so do get in touch and find out how we might support you and your business.