Local small business owners are being urged to rethink how they operate after UK small businesses paid £4.22bn more in tax than necessary last year.
Around 1.3 million businesses are currently classed as sole traders and partnerships, throwing away an average £3246 a year by not becoming a limited company, according to a Small Business Tax Action Report by Unbiased.co.uk.
Will Swift, who runs TaxAssist Accountants in Horsforth, said:
“The feedback we are getting from small businesses around Leeds is that, whilst trading conditions remain tough, things do seem to be looking up and securing finance for future growth is increasingly important.
“We have been working hard with our small business clients to make tax savings where possible and one of the first things we look at is their business structure.
“Initially there is undeniably a little more paperwork involved in becoming a limited company and more administration is needed on an ongoing basis, however we can take care of all that is required, allowing our clients to concentrate on running their businesses.
“The financial benefits of becoming a limited company can be huge; as well as making it easier to obtain finance, it is often far more tax efficient.”
TaxAssist Accountants Horsforth is a local business itself, operating across Leeds and Bradford providing tax and accountancy advice and services to businesses and taxpayers alike.