Would you like more Money in your Pocket and less in the Taxman’s?

Tax planning should be an integral part of your overall financial strategy. Tax planning is a proactive and strategic approach to managing your finances. It ensures compliance with the law, minimises tax liabilities and contributes to overall financial stability and success.

It’s importance extends across personal finances, business operations, and overall financial management. Here are some key reasons why tax planning is important:

We’ve collated our best tips which businesses can implement to potentially save on taxes.

1. Optimise Business Structure:
   • Choose a business structure that is tax-efficient, whether it’s a sole trader, partnership, or limited company.
   • Consider the Flat Rate VAT Scheme for small businesses.
2. Claim Business Expenses:
   • Ensure accurate recording and claiming of all allowable business expenses to reduce taxable profits.
3. Use Annual Investment Allowance:
   • Take advantage of the Annual Investment Allowance (AIA) for capital expenditure on plant and machinery.
4. Research and Development (R&D) Tax Credits:
   • Explore R&D tax credits for eligible research and development activities, which can provide tax relief.
5. Employee Benefits:
   • Provide tax-efficient employee benefits, such as pensions and share schemes.
   • Consider salary sacrifice arrangements for certain benefits.
6. VAT Planning:
   • Review the VAT scheme your business uses to ensure it is the most tax-efficient.
   • Consider the Cash Accounting Scheme for VAT.
7. Loss Relief:
   • Utilise losses to offset against profits in the same or future accounting periods.
8. Consider Group Structures:
   • If you have multiple companies, explore group structures for potential tax efficiencies.
9. Making Tax Digital (MTD) Compliance:
   • Ensure compliance with MTD requirements for VAT and other taxes.

It’s important to note that tax laws can change, and individual circumstances vary. Therefore, seeking advice from a qualified tax professional is recommended for personalized tax planning strategies.

If you’d like to gain more advice on saving tax please drop us a line at office@cbsltd.org or call our office on 01775 529345.