5 ways to make your business more tax efficient

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Operating a business in the most cost-effective and cash flow positive way is crucial for every business owner looking to turn a profit. There are countless ways to achieve this, whether it is an effective credit management strategy, investing in business growth via sales and marketing or reducing overheads.

However, one of the best ways to do this is to ensure your business is operating in a tax efficient manner. To highlight where your business could be making tax savings, our team of experts have put together a list of five areas that could improve tax efficiency.

1. Pension contributions

As a Director, if the company is not making pension contributions on your behalf then you could be missing out on reductions to your Corporation Tax bill.

2. Research and Development tax relief

A resource that goes untapped by countless business owners each year, R&D tax relief can be claimed on innovative work in science or technology. You can read more about R&D here.

3. Claiming expenses

We all know that we can claim back business-related expenses, but often we find that some business owners overlook expenses that could legitimately be claimed. If you are ever unsure of an expense and its eligibility, your Chartered Accountant will be able to provide their expertise.

4. Plans for tax rises

2023 will see the main rate of corporation tax rise from 19% to 25% (although the 19% rate will still apply for most businesses with taxable profits below £50k). This will impact countless businesses throughout the UK, therefore it is vital that you commence tax planning as soon as possible to accommodate the changes.

5. Staff socials allowance

Staff social events are crucial to a productive and happy team, and for these events (such as Christmas parties) you can claim costs of up to £150 per head per annum.

Are you looking for ways to ensure your business is operating tax efficiently? The team here at Ellis & Co. are on hand to guide you through the most effective ways that your specific business can achieve this. Get in touch today on 01244 343 504.