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Ensure Smooth Financial Process With Our Services On Tax Planning For Business Owners

It is essential to plan for the future regarding tax planning. Successful income tax preparation and filing begins with proper tax planning. By taking the time to understand your business structure, goals, objectives, and future vision, our expert accountants provide you with planning and tax preparation services that protect your business and support your long-term growth.

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To ensure your company’s continued success, Pearl Lemon Accountants offer innovative tax planning services. Reduce your potential audit exposure by relying on our experienced accounting team’s extensive knowledge of audit triggers and effective presentation techniques. Our attentive tax planners can assist you in moving your organisation from where it is to where you want it to be.

Talk to our experts today to know more about how we can help.

The Role Of Tax Planning For Firms

Tax planning aims to analyse and plan to ensure that all elements work together to ensure that you pay the least amount of taxes possible. Every business owner should include tax planning in their financial plans. Reduced tax liability and increased ability to contribute to retirement plans are critical success factors.

Proper planning allows you to determine which tax benefits you are eligible for. You might be able to benefit from the following:

  • Tax deductions: Tax planning enables you to reduce your taxable income. They are usually expensed, which you incur throughout the year and can be deducted from your total income. A charitable contribution could be deducted.
  • Rebates: these are a type of refund that occur after a retroactive tax reduction. During financial downturns, Congress may offer rebates to help stimulate the economy. They are also used to encourage environmentally friendly behaviour.
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  • Credits: Credits allow you to deduct money from your total debt. A tax credit may be available if you are a student, a low-income family, or have children.
  • Concessions: A tax concession is a reduction in the amount owed by a specific group of people by the government. They are typically used to incentivise specific behaviour.
  • Exemptions: Exemptions reduce or eliminate a person’s obligation to pay. Dependent-related exemptions allow you to deduct a certain amount from your taxes for each child or relative in your care.

Anyone who is required to pay taxes should think about tax planning. This includes low- to middle-income individuals, parents, those nearing retirement, small businesses, and large estates. You may end up paying more than necessary or not saving as much as possible if you do not have a tax plan.

Helpful Tips On Tax Planning for Business Owners

Tax planning is an essential aspect of growing a business. Many new entrepreneurs mistake viewing tax planning as a year-end activity. However, you may miss out on opportunities to reduce your taxable income if you wait until the end of the fiscal year to review your revenues and expenses through a tax planning lens.

You can take numerous steps throughout the year to ensure you’re ready to file your tax return when the time comes.

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Consider A Tax Status Change

As a small business owner, you have several options for business structure. You can run your business as a sole proprietorship, partnership, limited liability company (LLC), S corporation, or C corporation. Your business structure will impact how small business owners file taxes.

If your current business structure has outgrown you in the last year, you can switch to one that is a better fit. For example, by filing Form 8832 with the IRS, LLCs can elect to be taxed similarly to C corporations.

Previously, such an election was uncommon because the top corporate tax rate was 35%, but the Tax Cuts and Jobs Act of 2017 (TCJA) decreased the top corporate tax rate to 21%.

Separate Personal And Business Expenses

Separate business accounts make it easier to keep track of business expenses for tax purposes. Once you have a business checking account, keeping track of expenses is critical to file taxes properly. Remember that every receipt counts, from office expenses to operational and inventory purchases. When it’s time to file taxes (or hand everything over to your accountant), a comprehensive collection of business-only information will save you significant time and stress.

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Write Off Bad Debts That Have Gone

Certain aged, unpaid accounts are eligible for a tax write-off. This is done when a customer’s debt has not been paid and is expected to remain unpaid. By writing off this debt, you can reduce your company’s tax burden for the current tax year.

This process has potential complications, including if the customer pays their bill in the future, you must reverse the tax write-off you gave yourself. It is best to address bad debts in collaboration with your tax adviser to ensure this process is handled correctly.

Get Help With Qualified Professional Tax Planners

Regulatory changes in business taxation are constant and complex. Your company’s tax liability can be reduced through proactive tax planning. You can be confident that you are in good hands with our highly qualified, business-minded, and experienced tax specialists.

To ensure that your business is structured in a tax-efficient manner and that your corporation tax liabilities are kept to a minimum, Pearl Lemon Accountants provides comprehensive tax planning services.

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What Can Pearl Lemon Accountants Do For You

Pearl Lemon Accountants can maximise your tax allowances, tax reliefs, and industry-specific tax benefits. Our expert tax consultants also give you peace of mind by ensuring that all business tax returns are fully HMRC compliant and adequately filed, avoiding potential fines. Here’s a brief explanation of how our tax planning services work.

HMRC Tax Investigations Advice

Tax audits and inspections can be complicated and stressful, so unless you are confident of your position, seek professional advice from us as soon as a tax investigation begins.

Investigations frequently result in unexpectedly large tax bills, insolvency, and the need for a payment plan, a voluntary company arrangement, or even a creditors’ voluntary liquidation.

We can assist you if you have difficulty making HMRC payments or need help dealing with HMRC threats related to VAT, PAYE, self-assessment, or corporation tax issues. Better yet, we can help ensure that you are never subjected to an HMRC tax investigation in the first place.

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R&D Tax Relief Advice

The United Kingdom’s Research and Development (R&D) tax relief is among the most effective and generous in the world. A company’s tax bill can be significantly reduced or even refunded by claiming government-backed relief.

However, many eligible businesses do not file a claim, either because they are unaware of the relief or because it appears too complicated or inappropriate for their business. Not only are R&D tax credits available for traditional scientific research but also for design and engineering development.

The R&D tax credit experts at Pearl Lemon Accountants can help you determine whether you have a valid R&D tax credit claim and, if so, guide you through the process of claiming it, ensuring that you avoid the pitfalls that lead to such claims being denied and that you receive every penny you are entitled to. We handle all of the legal paperwork and legwork, allowing you to focus on what earned you the credit in the first place: innovating for Britain.

International Tax Planning

If you do business internationally or plan to live outside the UK, our international tax experts can help you save UK and non-UK tax.

The taxes you owe are highly influenced by how you structure your international personal and business affairs. We’ll create a global tax strategy to ensure you pay the least tax possible.

We have some of the best international tax experts in the business to ensure that you and your company are not only compliant around the world but also saving money on taxes in the UK and abroad.

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Personal Tax Planning

We provide compliant tax services for all types of tax situations to assist you in managing your personal tax affairs as a business owner.

The personal and professional lives of business decision-makers are frequently intertwined. We collaborate with you and your family to provide tax services that address your short-term and long-term goals. Our tax experts will help you manage your finances, protect your family’s wealth, and avoid unnecessary personal tax bills.

As legislation becomes more complex, efficient tax planning becomes increasingly important, and we specialise in providing a bespoke service to meet the needs of individual clients. Our tax services protect your assets while informing you of issues that may affect you. We can create a comprehensive plan for your and your family’s future, including tax breaks.

Don't Let Short-Sighted Tax Planning Hurt Your Business. Let Our Experts Help You.

The amount of tax paid by businesses is vital for investment and growth. This makes efficient tax planning crucial for any business. Just imagine the improper amount of taxes you pay that you should’ve used to invest or grow your business. 

But there’s nothing to worry about since you have Pearl Lemon Accountants to help you avoid future fines and penalties while saving you the time and resources required to help you grow your business.

Don’t let short-sighted tax planning hinder your business growth–reach out to Pearl Lemon Accountants today.

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FAQs

It’s never too early to start. To pay the least income tax each year, begin tax planning now. Don’t worry-you don’t need a degree in accounting to make sound tax decisions. But the best way to ensure a smooth planning process, you should reach out to professional tax planners like Pearl Lemon Accountants.

Most small businesses do not pay income taxes directly. You can receive a refund if your estimated tax payments and tax withholding exceed the tax due on your return. Because only C corporations pay income taxes directly, they are the only businesses that can receive a refund.

The IRS requires every business to file a federal tax return andpyearly taxes. So the answer to this question is no. No IRS-issued guidelines or exemptions allow you to avoid filing taxes for a year.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.