Taking stock of your finances and considering tax planning are key aspects of management for businesses and their owners.
Effective tax planning can result in considerable benefits for you and your business, where various means of maximising allowances and minimising liabilities are examined across a broad spectrum of taxation. This is particularly relevant considering the changes to many of these taxes and allowances announced in the Chancellor’s Autumn Budget and Spring Statement each year.
Many SME businesses could benefit from the potential tax savings that come with the right planning. Areas that could be examined include remuneration packages, the extraction of profits, dividend planning and options around additional pension contributions. As business owners, you may also look at different options when it comes to your workforce. Whether there are 2 employees or 200 employees, a myriad of employee benefit schemes are available.
Limited company owners need to understand how any changes in corporation tax and capital allowances rules may impact their tax liability. They may also need to consider if they undertake any innovative work as they could benefit from making a Research and Development tax credit claim.
From an individual’s perspective, you may wish to consider pension and Gift Aid contributions and any reliefs available on investments to reduce your tax liability. You should also regularly review your inheritance tax and capital gains tax situation depending on your personal circumstances.
Stamp Duty Land Tax (SDLT) and VAT are other areas that should be reviewed in order to ensure you do not overpay on these taxes. Taking early advice on potential transactions/projects – whether these are undertaken by your business or you personally – may help minimise the amount of SDLT or VAT payable.
This is only a snapshot of some of the key considerations - many businesses will differ in terms of their own circumstances and trading environments, but all businesses can benefit from diligent tax planning that leads to enhanced cashflow and profitability. If you would like further assistance with any areas of tax planning for you or your business, please do not hesitate to contact:
Belfast Paul O’Connor
Lisburn Christine Harrison
Portadown Neil Armstrong
Spring Statement 2022- For comprehensive analysis, GMcG’s 11-page Spring Statement Analysis document gets behind the detail of key announcements made by the Chancellor, with insight and analysis on how individuals, households and businesses may be impacted.
You can download your copy of the publication here: GMcG Spring Statement Analysis
We are also pleased to attach a link to a copy of our newly published Tax Rates card for 2022-2023 which you can download here: Tax Rates 2022-2023