Business tax

If you run a business, tax is generally complex and time-consuming to manage. But good tax planning can be a great source of efficiency and savings.

If the size of your business does not justify a full in-house accountancy function, then as a minimum you will probably need to engage an accountant to deal with your annual tax returns. But in addition to ensuring that your returns are accurate and punctual, an accountant can advise you on reducing your overall tax spend.

Tax regulation, allowances and reliefs change from year to year. An accountant will help you keep pace with these changes, and should identify opportunities for savings as well as pitfalls to watch out for. They will also advise you on key areas such as what you need to report, and what you can offset against taxable income.

Many other factors can affect how much your business has to pay in tax: commercial mortgages on property, business loans, company pension arrangements, share incentive schemes, group employee benefits, general insurance, company cars, wage structuring, environmental initiatives – the list goes on. These are all areas to discuss with an accountant. Some financial advisers can also help you with tax efficiency, including the most effective way to draw an income from your business.

Questions you might like to ask an accountant or financial adviser:

  • Could employee benefits bring tax advantages to our business?
  • Could I re-structure any financing to make it more tax-efficient?
  • What is tax deductible in my business, and how I can reduce tax owed?
  • When do I need to pay tax on my profits, and what do I do if I make a loss?