Business owners: Do you have a Tax Plan?
Tax planning in your business allows you to run your business with a long-term strategic plan for your financial success.
When considering how to run a tax-efficient business, here are some initial considerations:
Are you in the right business structure? Different taxes apply to different business structures, by switching from sole trader to limited company for example is a good idea if you are business is growing quickly and you expect it continue to do so.
Capital expenditure: although most business owners are aware that if they buy assets in their business they can get tax relief on the amount spent in the year of purchase, sometimes tax reliefs on capital expenditure are not so generous depending on the asset purchased.
Structuring the shareholding to your advantage as a limited company: If you are a family business, bringing in your spouse and/or family members is a helpful way to manage tax liabilities and make use of all tax reliefs across various individuals versus one director
Behind every business is a business owner. When considering a tax plan for your business, you should also consider tax planning for your personal finances.
Things to consider:
Boosting your pension
Disposing of shares and assets tax efficiently
Maximizing the use of the allowances, reliefs and exemptions available to you
Utilising tax-efficient investments, including VCTs and EISs.
Reducing inheritance tax liabilities through estate planning.
