Company tax planning tips

Sep 15, 2023 | Business, Company News

Running a business can be rewarding, but it’s not without its challenges. You’ll need to keep an eye on important deadlines, stay on top of your books and implement a solid tax return strategy if you want to give yourself the best chance of success.

In today’s article, we’ll outline our top tax return planning tips for businesses, covering everything from how to stay compliant to making the most out of the different tax breaks available in your industry.


Know your allowances and make them work for you

You’ll qualify for different tax allowances and reliefs depending on your circumstances. Doing your due diligence can help ensure you don’t miss out on any opportunities.


Research and development tax credits

Do you engage in innovative projects in science and technology? If you run a limited company, you may be eligible for research and development (R&D) tax credits.

Contrary to popular belief, this relief isn’t just available to tech startups and scientists. Many innovative architectural firms, financial companies and manufacturing businesses have reduced their liabilities by claiming R&D tax credits on their corporation tax returns.

Getting R&D right can be complicated, however, so we’d recommend speaking with your accountant before making your claim.


Employment allowance

Some employers can cut costs by claiming employment allowance (also known as National Insurance relief). Claiming this allowance can reduce the amount of employers’ Class 1 National Insurance you need to pay each time you run your payroll.

You may be eligible if:

  • you pay Class 1 employers’ National Insurance
  • your Class 1 National Insurance liabilities totalled less than £100,000 in the previous tax year.

However, not all employers will qualify for this tax break. For example, you won’t be able to claim employment allowance if you’re the only employee in your own limited company.


Capital allowances

Making the most of your capital allowances can help you minimise your tax burden.

The annual investment allowance (AIA) is available for sole traders, limited companies and partnerships alike, and allows businesses to deduct the full value of qualifying items from their profits before tax.

Some companies may also be able to take advantage of the new expensing scheme. Under this scheme, companies can claim 100% allowances on qualifying plant and machinery investments.

  • Consult a tax adviser: As tax specialists, accountants can tailor a tax strategy to your business’s profile, identifying cost-cutting opportunities with ease.
  • Use specialised services: Accountants who specialise in your industry can offer indispensable guidance to help you meet your obligations and goals.
  • Regular check-ins: Keep up-to-date with ever-changing tax laws by meeting with your adviser on a regular basis.


Work with experts

Understanding the ins and outs of tax legislation can be a minefield. If you want to maximise savings on your tax return, you should bring a professional on board.

An accountant can help you implement tax-efficient strategies in your business. From identifying the best business structure to maximising your expense claims, tax specialists will ensure you don’t overpay your tax bill.

What’s more, if your business tax return is too complex or time-consuming to handle yourself, an accountant can take on the task for you, helping you stay compliant while minimising your liabilities.

Get in touch with us to find out more about our tax return planning.

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