Pay Less Tax – Autumn 2026 Edition
Pay Less Tax Autumn 2026 Edition Discover the latest updates and pick up practical tips that could help your business to grow. To discuss how these changes could affect you,…
Corporation Tax
Fuel your company’s growth by reducing tax
Let us analyse your company’s finances to identify opportunities for tax relief, allowances, and deductions.
By strategically structuring your income and expenses, we help minimise your tax liabilities while staying fully compliant with HMRC regulations.
We offer strategic ongoing advice to ensure you are capitalising on all available reliefs and deductions year after year minimising your corporation tax while keeping your business growth on track.
Know when to get the best advice
Annual Planning
The best time to look into tax planning is at month 9 or 10 in your accounting period, so tax savings are maximised before the year-end. It’s all about being proactive rather than reactive!
Significant Event
When planning major business investments, acquisitions, or customer wins, you can free up more capital to support your new venture. Optimise your financial resources for better long-term profitability.
What is included in this service
Expense Review
We identify tax-free benefits and deductible expenses to lower your corporation tax.
Strategic Timing Advice
We provide advice on the optimal timing of significant business expenses.
Identify Corporation Tax Relief
Reviewing expenditure on property or plant and machinery to claim relief on qualifying costs.
Custom Reports
We prepare reports quantifying potential tax savings, with actionable steps before the year-end.
Unlock Growth and Stability
with Strategic Tax Planning
Increased Financial Stability
With optimised tax planning, your company enjoys a more predictable financial future, making it easier to plan and manage large expenditures.
Confidence in Decision-Making
Effective tax planning gives you clarity and certainty when making big decisions, such as investing in new projects or making acquisitions.
Maximised Cash Flow for Business Growth
Free up capital that can be used to fund expansion, make major investments, or acquire new assets, positioning your business for long-term success.
Peace of Mind
Feel secure knowing your company is fully compliant with HMRC regulations, reducing the risk of costly penalties and interest payments.
FAQs
What is corporation tax, and how is it calculated?
Corporation tax is a tax imposed on the profits of UK resident companies and foreign companies with a permanent establishment in the UK. It is calculated based on the company’s taxable profits, which include income from trading, investments, and capital gains. The standard rate of corporation tax is currently 25% for profits over £250,000, with a small profits rate of 19% applicable to profits up to £50,000. Companies with profits between these thresholds benefit from marginal relief.
What strategies can I implement to reduce my corporation tax liability?
There are several strategies to reduce corporation tax liability, including maximising allowable expenses, utilising capital allowances for investments in assets, and making the most of available tax reliefs and exemptions, such as research and development (R&D) tax credits. Additionally, considering the timing of income and expenses, restructuring the business, or utilising group relief for losses can further optimise tax liabilities.
How does tax relief work for staff entertaining expenses?
Tax relief for entertaining expenses varies significantly between business entertaining and staff entertaining. Business entertaining, which includes meals and events for clients or potential clients, is not tax-deductible, and no tax relief is available. In contrast, staff entertaining, such as annual parties or team-building events, may be exempt from tax if the cost per head does not exceed £150. This exemption allows businesses to provide morale-boosting activities for employees without incurring a tax liability.
What are the tax implications of providing company cars to employees?
Providing company cars to employees has tax implications related to Benefit-in-Kind (BIK) taxation. The BIK is calculated based on the car’s list price, CO2 emissions, and the employee’s tax band. Electric vehicles generally have lower BIK rates compared to petrol or diesel cars, making them a more tax-efficient choice. Businesses can also claim capital allowances on the purchase of qualifying vehicles, which can reduce taxable profits.
How do pension contributions affect corporation tax planning?
Pension contributions made by the company on behalf of employees are generally deductible as an expense, reducing the company’s taxable profits. There is no upper limit on the amount that can be contributed, but it must be “wholly and exclusively” for the purpose of the trade to qualify for tax relief. However, it’s important to consider the annual allowance for individual pension contributions to avoid exceeding tax-free limits for employees. Proper planning can help optimise pension contributions for both the company and its employees.
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