Business Tax Planning

Effective tax planning is essential if you are to minimise your tax bills. Simple tax planning can significantly reduce your tax liabilities.

Tax planning for the business owner should be based on a comprehensive approach to both business and personal taxation. Business or corporation tax planning and income tax planning should go hand-in-hand.

Take professional advice to find out how best to achieve your personal and business financial goals — and minimise taxes at the same time.

Tax planning and business structure

Tax planning and business structure

Business tax planning should be a key consideration for any business start up. Your choice of legal structure can have a significant impact on likely tax bills.

If you set up in business as a sole trader or in a traditional partnership, you will be self-employed — and therefore liable for income tax on your profits. So your tax planning should focus on income tax planning, along with other personal tax planning issues, such as minimising any eventual inheritance tax. You can find advice on inheritance tax planning.

By contrast, a limited company will require corporation tax planning as well as income tax planning. The effect in terms of overall tax (and National Insurance) liabilities depends on a range of factors, including the level of business profits and how much income you need to take from the business.

Of course, tax planning is not the only issue. You may want to take advice on other issues, such as the significance of limited liability protection if you form a company.

Key tax planning opportunities

Key tax planning opportunities

Ongoing tax planning will include ensuring you make full use of allowable expenses so you can reduce your tax liability. Effective tax planning can also enable you to bring forward expenses or defer income, so delaying tax payments.

Income tax planning for company owners needs to take into account the most tax-efficient way to take income. For example, dividends are not liable for National Insurance contributions (whereas income taken as salary is). Both company owners and the self-employed should also consider the tax planning opportunities offered by tax relief on pension contributions.

Tax planning can be particularly valuable if you are planning activities, for example, buying another business or selling your business.

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What our clients say

  • "Mark always takes the time out to explain any 'technical' issues in layman's terms, reminds me when things are due, keeps everything up to date and provides regular feedback regarding his opinions on my company's financial status.
    This was invaluable when I started the company and he'll surely prove to be a critical asset as we grow and develop."

    Jan - Manchester

  • "Accountancy Summit have managed my accounts since I started business a few years ago. The accountancy side of the business was very daunting at first for me, but they have helped us with everything and helped with progressing & growing the business."

    Andy - Grappenhall, Warrington

  • "Accountancy Summit are great accountants and once you're with them you know you're in safe and reliable hands. The systems they use are simple but very effective.
    In addition, Mark is a thoroughly nice chap and very easy to get on with. I would therefore recommend him to anyone who wants to keep the financial aspects of their organisation under effective control"

    Jan - Manchester

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Accountancy Summit
144 Knutsford Road
Grappenhall, Warrington
Cheshire WA4 2PW