As a business owner, you understand that taxes are an inevitable part of running your business. However, with the right tax planning strategies, you can legitimately reduce your tax liabilities, ultimately retaining more profits for your business’s growth and success.
Opt for Tax-Efficient Business Structures:
Choosing the right business structure can make a substantial difference in your tax planning efforts. Consider options like incorporating your business as a limited company, which offers advantages such as lower tax rates and the ability to extract profits through dividends more tax-efficiently.
Timing is Crucial:
Strategic timing can play a vital role in tax planning. Consider deferring income or advancing expenses to maximize deductions and reduce your tax liability in a particular financial year.
Capital Allowances for Tangible Assets:
Take advantage of capital allowances for tangible assets, such as equipment, machinery, and vehicles. Understanding the rules surrounding Annual Investment Allowance (AIA) and the Writing Down Allowance (WDA) can help you claim deductions on qualifying assets efficiently.
Consider Research and Development (R&D) Tax Credits:
If your business invests in research and development activities, you may be eligible for R&D tax credits. These credits offer valuable incentives to encourage innovation, allowing you to claim back a portion of eligible R&D expenses and reduce your tax liability. See below for a useful free download.
Employee Benefit Schemes:
Implementing tax-efficient employee benefit schemes can be advantageous for both your business and your employees. Consider options like the Cycle to Work Scheme, which provides tax benefits while promoting a healthy and eco-friendly workplace.
Contributing to pension schemes not only secures your own and your employees’ financial future but also reduces your corporation tax liability. By making employer pension contributions, you can benefit from tax savings while fostering employee loyalty.
Seek Professional Advice:
Tax planning in the UK can be complex, and tax laws may change regularly. Engaging the services of a qualified tax advisor can provide invaluable insights, ensuring you stay up-to-date with tax regulations and employ the most effective strategies for your business.
Please contact us now for more help and advice on reducing your comapny’s tax bill.
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Get a FREE review of your R&D process and a copy of the UHY Research & Development Tax Relief Guide
Companies applying for R&D tax credits need to follow the rules carefully in order to maximise their tax relief. New changes to the R&D tax credit scheme come into force from 1st April 2023 aimed at reducing incorrect or fraudulent claims, improving compliance and encouraging UK innovation.
UHY Ross Brooke is delighted to offer a complimentary review of your research and development tax credit process with one of our R&D tax credit specialists. Please fill in the form below for your free review and Tax Relief Guide.