Staying in the good books of the tax man can usually mean businesses, and some accountants, aren’t proactive in making savings within the realms of Corporation Tax.
Regulations and laws are tighter surrounding Corporation Tax but that doesn’t mean you can’t save a few pounds.
Here are our top tips that can show you how to save on your Corporation tax bill:
- Make sure you keep a record of everything paid for personally as this can offset your profits; and can also mean you are able to draw said money out of the company personally and it’ll be tax-free.
- Ensure you are claiming your capital allowances – a very important factor, read our previous blog post about capital allowances
- R&D – you could be reimbursed by HMRC if your company is seen to be innovative, and in-turn lowering your Corporation Tax bill. Unsure about if you can claim, see our previous blog post. Ascendis, accountants in Cheshire, are specialists in claiming R&D tax credits, you could be part of the 97& of eligible companies who aren’t claiming.
- Pension contributions – this is an allowable expense if you as a director makes contributions, you will also gain from a personal savings stand point.
- Make sure you are accruing for all costs necessary – if you have not yet paid for a cost but know it will only slightly fall outside of your businesses Y/E it should be included. But be aware, this will need to be reversed in next year’s accounts
There are many more ways to reduce your Corporation Tax bill. Get in contact for a free consultation, we cover a range of tax saving means.