Paul Woodcock outlines 5 top ways to save tax including using family members as employees or dividend recipients, ensuring proper VAT registration and claims, claiming tax relief for home office expenses, deducting vehicle costs, and claiming entertaining expenses within tax rules. The document provides details on each of these tax saving strategies with examples of how to structure payments to family, common VAT mistakes to avoid, calculating tax deductions for home office use, vehicle expense options, and ways to claim entertaining costs.

1. ‘Top 5 ways to Save Tax?’
By
Paul Woodcock BA (Hons); FCA
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2. Who am I?
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3. 5 top saving ideas
1. Use your family
2. Get your VAT right
3. Use of home as office
4. Use of vehicle
5. Entertaining
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4. 1. Use your family
a) The spouse
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5. How?
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• Salary
• Dividend

6. b) The children
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7. Whats the rule?
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• BIM47105 - where there is "'equal pay for
equal value' the amount paid is fully
allowable, notwithstanding any
connection between payer and recipient”

8. What about IHT?
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9. How does the family help?
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• Spousal exemption
• Main residence relief

10. 2. Getting your VAT right
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11. Main errors
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• Not registering
• Flat rate scheme
• VAT on subsistence and travel
• VAT on home office expenses
• Thinking it’s too much administration

12. 3. Use of home as office
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13. 3. Use of home as office
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• Who can claim it?
• How is it calculated?
• What costs should be included
• Claiming when you already have an office
• VAT on home expenses
• Setting up a licence agreement with a limited
company

14. 4. Use of vehicle
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15. 4. Use of vehicle
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• Self employed – 2 options
• Limited company – 2 options
• VAT on petrol claims – keep receipts

16. 5. Entertaining
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17. 5. Entertaining
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• What is entertaining and is it allowable?
• Let’s turn entertaining into something else?
• Subsistence!
• Advertising!
• Cost is tax deductible and VAT allowable.

18. ‘Thank you for
listening’
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