Corporate tax planning

Corporate tax rules are ever-changing, with new rules often announced mid-way through the tax year but sometimes taking a while to come into effect. This means it is easy to pay more tax than you should be simply because you are not aware of the latest updates.

We will be able to advise you as to the best tax structure for your business and make sure you are compliant with all the relevant rules and regulations.

Corporation tax return

Once you have decided on your tax structure and understood the rules for the current tax year, you need to submit your corporation tax return. To do this yourself, you need to download software (which you can get from HMRC) and submit this along with your tax calculations and accounts.

Handing this task over to an accountant will save time and potentially money as they use their extensive knowledge of tax allowances and reliefs too.

R&D tax credit claims

Research and Development (R&D) tax credits were introduced by the government in 2000 to encourage more UK businesses to invest in innovation. The idea is that businesses will invest in more staff and make more profit, helping the economy, and also benefit from tax credits.

The criteria for R&D is broad and applicable to many sectors and categories of spending, so if you’ve developed or enhanced a product, process or service, an R&D tax consultant will be able to help you with your claim. An experienced R&D tax consultant can help your business with your claims by providing guidance and expertise and navigating the complex tax regulations and requirements associated with R&D tax incentives. This process involves assessment, eligibility determination, documentation gathering, technical and financial analysis, followed by calculation and optimization, then a submission is made. When the HMRC have any questions or require clarification, a thorough review and a clear response is needed to complete the claim.

R&D consultants help you stay compliant with ongoing R&D tax requirements and assist with any future updates or changes to the tax regulations. They provide advice and guidance to ensure your business continues to meet the eligibility criteria for R&D tax incentives.

EIS / SEIS applications

The Enterprise Investment Scheme and the Seed Enterprise Investment Scheme are two similar government initiatives to encourage investors to invest early stage, and typically higher-risk, companies.

Investors can benefit from tax breaks of up to 50%, and do not have to pay any capital gains tax on shares sold after three years. For businesses, the investment must be spent on the growth and development of the company.

However, there are several terms and conditions for businesses to adhere to before they can tell potential investors that they are eligible for SEIS or EIS funding. Your accountant will be able to let you know if you qualify and what scheme would be most beneficial for you and your potential investors.

Purple Lime have a wealth of experience in applying to HMRC for these schemes, including liaising directly with the inspectors to ensure a swift and straight-forward acceptance into the scheme.

EMI schemes

An Enterprise Management Incentive (EMI) is a shares option scheme which benefits businesses and their employees.

Employees get to have a share in the company, so they benefit from any success with huge tax advantages, and businesses benefit from the schemes tax efficiency and increased staff loyalty as staff have a more vested interest in making the business a success.

Speaking to your business accountant will ensure you pick the best option for both you and your employees.

Personal tax planning

While you may have your business finances under control, what about your personal finances? The way you organise your individual finances can have a significant impact on the amount of tax you pay.

From Business Asset Disposal Relief to pension contributions, tax credits to inheritance tax, there are a host of options for business owners to consider.

Talk to your accountant about your personal tax plans to make sure you benefit from all the hard work you have put into your business.

Personal tax returns

As with your business tax returns, your personal tax returns can also benefit from some expert input.

Using a specialist accountant will save you time, and you will also benefit from their expert knowledge of various tax reliefs and allowances you could be entitled to.

Partnership tax returns

Partnership businesses require their own partnership tax return, as well as individual self-assessments for the partners. This paperwork lets HMRC know about the partnership’s income and how it has been divided among the partners.

The way the partnership is taxed depends on the number of partners and the amount of income. A business accountant will be able to advise on the most effective way to submit both the partnership and individual returns.

Trust tax returns

Trusts take many different forms, including bare trusts, interest in possession trusts, accumulation trusts and discretionary trusts. Each of these is taxed differently and can vary if someone is a trustee of more than one trust or if a trustee is not resident in the UK.

This tricky topic benefits from the advice of an accounting firm to make sure the right amount of tax is paid by the right person at the right time.