Coporation Tax Planning
We do not undertake or advise clients in ‘aggressive ‘ tax planning strategies. These are under increasing scrutiny and with higher costs to advisers as well as higher risk of investigation we leave this planning to other areas of the market to promote. As with any tax planning, the motivation to reduce the liability to tax needs to be measured against the benefit received from the funds spent.
For many, timing of expenditure, withdrawal of funds tax efficiently and the effective sheltering of funds within a corporate environment can all produce effective planning strategies depending on the needs of the owners and the business.
Specific Examples of Corporation Tax Planning
The Government provides some significant tax incentives for companies undertaking Research and Development, and it can be surprising to discover just what might actually qualify as Research & Development. To read more please view our R&D Tax Credits factsheet.
The Patent Box was introduced in 2013 to encourage innovation and importantly, with regards to Corporation Tax planning, it provides a reduced rate of corporation tax. To read more, please view our Patent Box factsheet.
Corporation Tax Self-Assessment
As for individuals, the company has to self-assess its liability and make a payment to HMRC for each period of trading. We assist in preparing the calculation of taxable profits (adjusting for non allowable expenses / non taxable income) and claims for capital allowances.
We will then calculate the liability to corporation tax and complete the corporation tax return before discussing and agreeing this with you and filing online within the 12 months filing deadline. We will then advise of the payment to make and any subsequent correspondence arising.