With the Spring Budget looming in March, it is easy to be tempted to delay tax planning until afterwards in hopes of favourable tax cuts.
However, the Chancellor has made it clear that significant cuts to taxation aren’t likely to be announced 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.
Your taxation planning should be part of a wider business plan, which helps you to:
- Outline your business’s goals
- Plan for investments and expenditure
- Identify and be prepared for potential problems
- Have the ability to measure your progress
A robust and well-prepared corporate tax plan can help you to make the most of the money and assets within your company.