As a small business owner in Crawley, you’re focused on growth. You’re managing clients, developing products, and building your reputation. The last thing you want to do is voluntarily give HMRC more money than you need to.

Yet, many business owners do just that.

It’s not because they’re bad at what they do. It’s because the UK tax system is complex, and they simply don’t understand the rules. They’re not just overpaying on tax; they are, as we say, "straight-up burning money."

At Curve Accountancy, our job is to stop the leaks. Here are three of the most common (and most costly) tax mistakes we see West Sussex businesses make every single day.

Mistake 1: Not Claiming for Laptops, Desks, or Even Carpets

The Mistake: You buy a new MacBook, a van, or fit out your new office in Manor Royal. You see it as a "cost of doing business," but you don't realise you can get a huge, immediate tax deduction for it.

The Fix: This is what Capital Allowances are for. For most small businesses, this is handled via the Annual Investment Allowance (AIA), which allows you to deduct 100% of the cost of most qualifying "plant and machinery" from your company's profit in the year you buy it.

This doesn't just mean big, heavy machinery. It includes:

• Office furniture (desks, chairs, filing cabinets)
• Computers and IT equipment (laptops, printers, servers)
• Company vans
• "Embedded" fixtures from a renovation, like new electrical wiring, air-conditioning, carpets, and security systems.

The Impact: Every pound you claim in allowances is a pound you don't pay Corporation Tax on. If you're a limited company, claiming £10,000 in qualifying assets could reduce your tax bill by £1,900 or more.

Mistake 2: Forgetting to Claim Your Business Mileage

The Mistake: You use your personal car to visit a client in Horsham, drive to a supplier in Three Bridges, or pop to the bank in Crawley town centre. You see it as a "pain in the behind" to track, so you don't bother. You are personally funding your business's travel costs, tax-free.

The Fix: You must start tracking every single business mile. HMRC allows you to claim a flat-rate deduction for this travel.

The approved rate is 45p per mile for the first 10,000 business miles you drive in a tax year (and 25p per mile after that).

Crucial Clarification: This does not include your daily commute (e.g., driving from your home in Haywards Heath to your permanent office in Crawley). It's for travel to a temporary workplace, like visiting clients, going to networking events, or running business errands.

The Impact: If you drive just 200 business miles a month, that’s 2,400 miles a year.

• 2,400 miles x £0.45 = £1,080 That’s over £1,000 of tax-free money you can claim back from your business. If you drive 10,000 miles, it’s a £4,500 deduction. It's absolutely worth tracking, and apps like MileIQ or the tracker in Xero make it simple.

Mistake 3: Taking the Wrong Mix of Salary & Dividends

The Mistake: You're a director of your own limited company. You've heard dividends are "tax-efficient" (which they are, as you don't pay National Insurance on them), so you pay yourself only in dividends and take no salary at all.

This is a classic trap. You might be saving a tiny amount on tax, but you’re making a huge mistake for your future.

The Fix: To get a "qualifying year" for your State Pension, you need to earn (or be credited with earning) above the Lower Earnings Limit, which is £6,396 for the 2025/26 tax year.

By paying yourself a small, tax-efficient salary above this limit (e.g., up to the National Insurance Primary Threshold of £12,570), you:

• Build up your State Pension entitlement (which is hugely valuable).
• Still pay little to no Income Tax or National Insurance.
• Can then take the rest of your profits as dividends.

Taking the wrong mix—or no salary at all—can mean you're left with a smaller State Pension, all to save a tiny amount of tax today.

Stop Burning Money

Tax compliance isn't just about paying what you owe. It's about ensuring you don't pay a penny more.

These three mistakes alone—missing capital allowances, ignoring mileage, and taking the wrong pay mix—can cost a small business thousands of pounds every year.

At Curve Accountancy, we are obsessed with this stuff. We help business owners across Crawley and West Sussex stop the leaks, get compliant, and build a more profitable, tax-efficient business.

Ready to stop burning money? Get in touch for a friendly, no-obligation chat today.