Although generally speaking, having a Corporation Tax bill can be seen as a good thing, as it shows your business is profitable, there are legitimate ways of reducing the overall liability.
As the owner of your own business, it is important to ensure your remuneration is tax-optimised at the same time. It is likely that you will be taking dividends to reduce your personal tax position, so this will be a major consideration during any Corporation Tax planning we perform.
The most widely utilised Corporation Tax planning tool is making employer pension contributions, as they are an allowable expense. This also has the benefit of extracting capital1 from your business in a very tax-efficient manner.
Other Corporation Tax planning methods include:
- Ensuring any investment income is structured tax efficiently
- Claiming all allowances (such as R&D credits, capital allowances and loss carry back)
- Making provisions against stock and debtors
- Reinvestment of profit back into the business
- Investment for Diversification purposes
- Specialist Corporation Tax planning schemes
Bankfield’s experienced Corporate Independent Financial Advisers will work with you, as the business owner, in conjunction with your other professional advisers to ensure that your personal and business tax position is optimised to meet your current and future objectives.
Call us now on 0116 253 5600 to speak to a qualified adviser in confidence and with no obligation to discuss how we can help you, or complete the enquiry form.
Corporate Tax planning is not regulated by the Financial Conduct Authority.