Active Tax Management
There are many aspects to company taxation and tax reliefs, as well as the taxation of business owners on their withdrawal of company profits. Planning is crucial.
Company Tax Planning
Budget for tax payments and know which reliefs to claim
Co-ordinating Business & Personal Tax
Knowing the best way for business-owners to pay themselves
R&D Tax Credits
Generous yet under-claimed reliefs for technology and science
Tax Reliefs
Take advantage of tax reliefs designed to help businesses
Business Asset Disposal Relief
The most important relief for business owners, but it has traps
Capital Allowances & Capital Gains Tax
Buying and selling business assets is a complex area
Company Tax Planning
For many businesses, the annual tax liability is calculated by the company accountant months after the year end. It is the last figure in the accounts, computed from historical trading results. At Tayabali & White, we prefer to take a different approach by forecasting tax liabilities with our clients as they budget for the year ahead.
By knowing your plans in advance we can estimate your future tax bills and plan for the possible use of the many business tax reliefs available, such as Capital Allowances and R&D Tax Credits. This is just one reason why we work with our company clients throughout the year.
Co-ordinating Business and Personal Tax
All business owners want to know how best to reward themselves financially from their company in the most tax efficient way possible. No two companies are quite the same and each business will require its own tailor-made strategy, which may vary year on year depending on the results of the business, personal cash requirements and the presence of other investors.
In addition, tax rules and tax rates change frequently, which means that any remuneration strategy must be kept under regular review.
As experienced specialist tax advisers to Owner-Managed Businesses we can advise not only on the personal and company tax opportunities open to you, but also practical considerations, such as cash flow requirements, rewarding key employees and family members involved in the business.
R&D Tax Credits
HMRC’s generous R&D Tax Credit regime is designed to help companies, some or all of whose activities make advances in science or technology. What qualifies as R&D is widely drawn and HMRC have said that they feel the relief is under-claimed. Even if you don’t think of yourself as operating in the science or technology sphere it is possible that part of your company’s activities may qualify.
If a claim is successful, profit-making companies can significantly reduce their Corporation Tax liabilities, whereas loss-making companies can obtain a payment from HMRC in return for surrendering losses that would otherwise have been carried forward.
Establishing whether your company qualifies for the R&D Tax Credit regime and then computing and presenting your claim can be very complex. We are very experienced in this area and have never had a claim rejected, in the process saving our clients significant amounts of tax.
Tax Reliefs
There are dozens of different reliefs available to businesses, usually created to incentivise investment and growth.
There are too many to list here, though we have mentioned Capital Allowances and R&D Tax Credits separately. Others that we advise on regularly include the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) which offer significant tax savings to investors in small private companies.
Again, the important thing is that by talking regularly to us we can help you identify and claim reliefs that you may not have known about and which may influence your decision-making.
Business Asset Disposal Relief
Most business owners and their families are aware of Entrepreneurs’ Relief (which has recently supplanted Entrepreneurs’ Relief), which offers a 10% Capital Gains Tax rate on gains on the disposal of one’s business. What is less well understood are the many qualifying criteria that go with it and consequently the possible wide scope for its disallowance.
We have been advising clients on Business Asset Disposal Relief, and its similar predecessor reliefs for year and we can help you to avoid its pitfalls. As with all areas of tax it is important to plan ahead. Even if your planned exit is many years away, we will work with you now to ensure that you are able to claim this important relief and do not jeopardise your entitlement to it.
Capital Allowances and Capital Gains Tax
From a new computer to buying and refitting of a factory, the taxation of the purchase and disposal business assets is a very complex and widely misunderstood area. Investing in your business is important and obtaining as much tax relief as possible is critical to funding the costs of expansion and improvement.
However, it is also an area that we know well. We encourage our clients to talk to us in advance of making important expenditure or significant disposals of business assets so that we help to ensure the most tax efficient result is achieved.
