Over the last two blogs, we’ve looked at some pretty major ways of getting Corporation Tax breaks and how to reduce your tax liabilities.
And while they are definitely worth thinking about, we know some of you are more interested in the easy things you can do to reduce your Corporation Tax bill.
So, let’s take a look at a few simple but legitimate ways of getting Corporation Tax breaks. The last one, might surprise you!
This may sound obvious, but how many times have you forgotten to claim for a train ticket or not made a note of how many miles you drove to that meeting? Over the course of the year, these all start adding up, leaving you seriously out of pocket.
HMRC’s simple rule on business expenses is that anything claimed must be entirely for business use and broadly covers:
If you’re not 100% sure if it’s a claimable business expense, just ask. As accountants, we work regularly with clients in the Tring, Aylesbury and High Wycombe areas on Corporation Tax breaks, so understand all the ins and outs of small business expenses and often spot things that would otherwise be missed.
Believe it or not, you can spend up to £150 per head per tax year on annual functions such as a staff Christmas party or summer BBQ. The good news is, you don’t have to hold one event, it can be spread over several events, as long as it doesn’t exceed £150 including VAT per person. Costs can include food, drink, tickets to events, accommodation and taxi fares and also applies to any ‘partners’ invited along. Just make sure all events are open to all employees, otherwise it will be taxable.
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Did you know HMRC gives away a free gift for every self assessment tax return submitted on time?
And did you know that you can give yourself and your staff a Christmas gift without it being taxable? The only conditions are:
Time to go shopping!
Yes, really! If you pay your Corporation Tax early, HMRC can pay you an interest rate, known as ‘Credit Interest’, which currently stands at 0.5%. The earliest HMRC will pay interest from is six months and 13 days after the start of your account period with the interest accumulated from the date you pay your Corporation Tax to the payment deadline.
If you’re super-organised and know that you won’t need that money for anything else, then this is definitely worth doing.
Over the years, we’ve successfully helped our clients around the Aylesbury, Tring and High Wycombe areas reduce their Corporation Tax by giving them this simple mantra to follow: less profit = less tax to pay. So, whatever you can do, legally, to reduce your profit is going to help reduce your final Corporation Tax bill, which can’t be a bad thing.
If you’re interested in learning more about effective Corporation Tax breaks for your limited company or are looking for new accountants in Aylesbury, why not give us a call.
We help ambitous small business owners grow their personal wealth and achieve their ideal work/life balance.
Palmers Barn,
Station Road,
Long Marston, Tring,
HP23 4QS
UK.
Office: 01296 662322
Email: info@palmers-uk.com
Palmers Business Support was founded to help ambitous small business owners grow their personal wealth and achieve their ideal work/life balance. With accountancy as the central pillar of our offering, we take the view that timely accounts and efficient compliance is the bare minimum our cients should expect.
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