How can I lower my business tax bill?

Contact us for expert advice regarding your taxes

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.

How can we help?

  • Research & Development – We can help you with your application and ensure you are claiming the maximum tax relief.
  • Business Restructure – We can advise on the best structure for your business and implement any changes required.
  • Profit Extraction – We can ensure you receive as much cash in your pocket as is tax-efficient.
  • Tax Planning – We’ll develop a tax planning strategy for your business that makes sure you retain more profit.
  • Capital Gains Tax (CGT) – If you own and sell valuable assets, such as additional property, you may need to pay CGT on the profit. We can do the calculations for you or tell you if the asset is exempt.
  • Capital allowances – Tax relief is available on some capital expenditures in the form of capital allowances. We can help with capital allowances computations, the timing of purchases and sales of capital assets.
  • HMRC tax investigations – You should always take enquiries by HMRC seriously. Green & Co has dealt with tax investigations at all levels. We can help navigate you through your investigation.

You might also need our help with:

  • Completing your self-assessment returns
  • PAYE and national insurance contributions
  • Choosing the best VAT scheme

Every business has its own unique circumstances, and you should always seek our advice before acting. Contact us, and we’ll be happy to help you.

Visit the Business Tax page for more information about our business tax services.
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