What is your company’s tax strategy for 2019/20?

Does your business have a tax plan or strategy for the coming year? Are you sure that you’re claiming everything available to you and that your business is structured in the most tax efficient way possible? This article will discuss the strategies that you might be able to use to implement the most tax efficient decisions for your business.

Not all of these options will be applicable or indeed advantageous for every business. The key is to find the best combination of methods which will create a bespoke strategy for each of our clients.

Restructuring

Restructuring your business could result in huge potential gains, including a reduction in operational costs, improvements to competitive advantage and potentially reducing the businesses’ tax bill.

As accountants we work with a significant number of businesses over many sectors and industries.  We can help implement best practice which will improve a business’ tax position. We can also advise on and help to implement a robust and future proofed business structure.

Remuneration strategy

Extracting money from your business in the most tax efficient way can be complicated but important and we treat it as such. Forward planning is crucial to this exercise as well as considering both you as an owner and your company at the same time.

R&D tax credits

Research and development (R&D) tax credits are a government tax relief that rewards UK companies for investing in innovative projects in science and technology.

Companies spending money on the development of new products, processes or services with the aim of scientific advancement, or enhancing existing techniques, are often eligible for a reduction in their corporation tax liability, or even a cash payment.

R&D tax credit rates can provide up to and additional 33p for every £1 of qualifying expenditure. They can also be used as an alternative to innovation grants for research and development funding.

Click here to read our post on whether you are eligible for R&D Tax Credits:

https://www.swindellsaccounting.co.uk/business/rd-tax-credits-business-eligible/

Capital allowances

UK companies are reportedly losing billions of pounds on capital allowances claims each year. The capital allowance regime allows a business to get tax relief on capital expenditure which would normally not be tax deductible, by allowing it to be offset against profits made in the year. Ensuring that a business has maximised its available reliefs can have a significant effect on reducing your tax bill year on year.

Patent Box

More and more companies are receiving income from intellectual property, which can attract lower rates of tax. Our corporation tax team will work with you and your business to identify this income and make sure your company pays the correct rate of tax on this income, potentially reducing your corporation tax bill.

Profit extraction

Taking profits out of your business can generate significant personal tax liabilities. We work with businesses to ensure pension schemes, salaries, dividend payments and investments, amongst other strategies, are all working to minimise your tax liability. At Swindells we help you to undertake a comprehensive review of all options available. We can then help you to choose the most effective strategy for you and your business whilst keeping your tax liabilities to a minimum.

Succession & exit planning

Have you thought about how are you going to exit or retire from your business? Perhaps the next generation or your management team is pushing to take over, or maybe you would prefer to sell? We can help you understand your options and then implement your chosen course of action.

We can guide you through the process not only from a business perspective, but from the personal side as well. We’ve worked with many business owners over the years to help them exit their businesses their way and put them and their business in the best position possible for the future.

The right strategy for you and your business:

These methods work best when tailored and developed as a bespoke strategy for your business. We work closely with you to define the best plan for your business in the short and long term, ensuring that it works to achieve your and your business’ goals.

We work with businesses across the UK, South-East and London supporting their finance directors & CEOs to develop robust and efficient tax strategies. This can include advising on restructuring a business or ensuring that all areas of the business are claiming everything possible, to ensure the business pays as little tax as possible.

If you are a CEO or finance director and looking to develop a robust and efficient tax strategy for 2019/20 and beyond, please do get in touch with Melanie Richardson our Managing Partner to see where we can support you and your business.

If you’d like to learn more about our approach to working with clients get in touch with Melanie directly on:

Email: melanier@swindellsaccounting.co.uk

Tel 01825 763366