While the forthcoming Spring budget is focussing minds on tax planning, it’s important that businesses look at planning for tax changes on a proactive, year-round basis to head off unexpected new circumstances.
However, the Chancellor has made it clear that significant cuts to taxation aren’t likely to be in his speech and so businesses should be taking steps now to prepare for the changes already being introduced in the months ahead.
Tax planning for businesses doesn’t have to be complicated. Small business owners can take advantage of certain deductions, credits and other tax benefits to help reduce the amount of tax they owe.
Corporation tax is a major tax for companies and tax planning allows businesses to reduce liabilities by taking advantage of capital allowances, R&D tax relief or other initiatives that encourage investment by offsetting expenditure against profits.
Effective tax planning can enable you to bring forward expenses or defer income, so as to delay tax payments into future years.
Your taxation planning should be part of a wider business plan helps you to:
Operating an agile approach to corporate tax planning across the year ensures your business is not caught on the back foot and ready for unexpected challenges.
