Keeping on top of your taxes and paying what you owe is no doubt important, yet paying more than you need to can put your business at financial risk, aside from being unnecessary. Ensuring that you are paying the correct amount may be crucial to your survival, especially during tricky or difficult periods. A reputable and experienced accounting firm can help you determine exactly what you owe without you having to spend all your free time pouring over your books. Here are some tips on how to reduce your Corporation Tax and what Gow & Partners can help you with.
Ensure that you do not overlook any expenses and make sure they are included in all accounting records. When you’re passionate about your business, you may not think twice about paying out of pocket for little things. However, they soon add up and this may result in your profits being overestimated. Having a true picture of your expenses is important for the sustenance of your business.
Tax savings may be accessible for Research and Development Allowances. This means that you have directly paid for equipment or research facilities. Since these can be generous, it can potentially save you a large amount of money. Additionally, if your business pays employees to innovate in the technical field then you may be eligible for tax relief. This can be a quarter for every £100,000 spent.
Generally speaking businesses are given around two years to make any tax relief claims. Ensure that you apply on time to make sure you don’t miss out on any available help or grant. This can reduce your corporate tax substantially.
The Annual Investment Allowance or AIA allows companies to claim immediate tax relief when they buy certain business assets. This was increased to £1m at the beginning of 2019. This means that companies can write off the investment against profits meaning they save a huge amount in tax.
As an employer, you can deduct the contributions you pay into pension schemes from your profits. However, this must be done before the end of the accounting period. This is a simple way of reducing corporation tax as it gives a truer picture of your company profits.
There are numerous loss reliefs available for businesses. Since there are many types of losses that a company can suffer, a reliable and experienced accounting firm can make sure you access all the relevant help available so that you stay afloat.
Nobody wants to overpay tax. It can not only affect your profit but also your business growth and future investments. At Gow & Partners we are always looking for the best strategies to help save you both time and money. With so much information out there about what businesses are entitled to, you may struggle to determine exactly what you should be paying. At Gow & Partners, we can help ensure that you save money wherever possible, so that your business continues to grow and thrive.