How can I lower my business tax bill?

At Green & Co, we can assist businesses with all aspects of tax and tax planning.

Failure to plan for business taxes can cost you money.

Here are some areas to consider when looking to lower your business tax bill:

1. Business Structure – Could a restructure of your business help minimise your tax? Some businesses benefit from separating their assets and trading, allowing them to access group tax relief and utilise losses. You could also benefit from introducing family members into the business.
2. Research & Development (R&D) – If your business has worked to improve a product, process or service, or developed a new one, you may be eligible for R&D tax credits which will reduce your tax bill.
3. Tax Deductible Expenses – Make sure you are claiming for all eligible business expenses.
4. Pension – Opting into a pension will not only lower your corporation tax bill but the costs can also be included in a Research & Development claim.
5. Employees Rewards – You can give employees a tax-free gift of £50 a few times a year as long as it meets the trivial benefits criteria.
6. Invest in machinery – To avoid corporation tax, you may invest in new machinery and benefit from the Annual Investment Allowance (AIA).
7. Mileage – You and your staff may claim a mileage allowance for any business travel.
8. Charity Donations and Sponsorship – Lower your tax bill by giving money to a charity or community amateur sports club (CASC). Although, sponsorship is different because you are getting something in return. You can deduct sponsorship from your profit before you pay tax by treating it as a business expense.