UHY Ross Brooke Chartered Accountants

7 simple steps to reduce your company’s tax liability

working from home tax relief expenses

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.

Pension Contributions:

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.

You may also be interested in:

Next steps

Fill in the form below to receive your free copy of our UHY Research & Development Guide.

R&D Tax Relief Guide / Free Review of R&D Tax Credit process

  • Please tick this box if you would like to have a FREE review of your R&D tax credit process
    and we promise not to share your details
  • This field is for validation purposes and should be left unchanged.

Share This Post

Related insights

Talk to us

Newbury: 01635 555666
Abingdon: 01235 251252
Swindon: 01793 610008
Hungerford: 01488 682546