It may seem premature to start planning taxes when we have only just passed the mid-point of the tax year on 5 October.
But failing to keep on top of your tax obligations is the scariest thing we can think of…
Timing is key when it comes to taxation, so plan ahead and avoid the dreaded tax season rush.
Treat yourself by reviewing your financial position this Halloween and take advantage of the tax reliefs and allowances you are eligible for.
Use your allowances
You can claim tax relief on purchases made for your company. This can help you reduce your tax bill whilst providing an incentive to invest.
An example of this is the Annual Investment Allowance (AIA).
You can use this to claim tax relief on investments made in plant and machinery purchases. Whilst there are limits on allowances such as this, they are worth doing before the end of the tax year to receive extensive savings.
Contributing to pensions
Whilst there are annual limits on pension contributions, this is another key area that can help to reduce your tax liability when planned correctly.
Hiring an accountant can help you plan and manage your pension contributions, streamlining your tax liabilities along the way.
You may be eligible for capital allowances if your business owns property.
For example, if you choose to renovate your business property, you may be able to claim for certain expenditures. If you have been considering a renovation, doing it before the end of the tax year can benefit your tax position.
R&D tax relief
If your business is involved in innovation, Research and Development (R&D) tax credits could work for you.
Whether your innovative project is successful or a failure, you could still potentially claim R&D tax credits by keeping detailed records of your activities and costs.
An accountant can advise you on whether your project may be eligible along with how to navigate the complex claims process.
Hire an accountant
An accountant is your fastest option to reduce your tax liabilities. While the advice above offers a good starting point, new avenues may be discovered by an expert.
Halloween is the perfect opportunity to treat yourself to expert advice. By setting your plans in place now, you improve your business’ finances for the future.
If you want to start planning your tax, treat yourself to a discussion with one of our experts today.