Achieve Business Goals: Tax Planning for Business

Small business owners never seem to have enough time on their hands. As a result, Tax Planning for Business is frequently neglected. Without tax planning, the chances of paying less or overpaying are high.

30% of small businesses overpay their taxes.

With so much on your plate, how can you avoid this? By seeking assistance from a chartered accountant.

Pearl Lemon Accountant’s Tax Planning for Business services help busy business owners like you maximise profits while minimising liability. When taxes are planned, you can save more money; hence, you have a higher chance of running a profitable business.

If you want to get ahead of your fees- get in touch with us now, and we’ll help you.

Tax Compliances Businesses Need To Know About

Small firms and entrepreneurs are liable for various taxes, including Corporation Tax and National Insurance. Below is a summary of some vital business taxes you’ll face as a business owner. Tax Planning for Business is essential to navigate these tax obligations efficiently and maximise your financial strategies.

Corporation Tax

A Corporation Tax is one on limited companies’ taxable income or profits. Companies must compute their Corporation Tax liability and pay the determined tax to HMRC without prior assessment. Corporation Tax is payable nine months and one day after the company’s “regular due date,” which is usually the last day of the fiscal year. Corporation tax planning, which includes deciding whether to delay income or profit to reduce your tax obligation, is essential. Strategies may also explore deferring costs to a later accounting period and utilising capital allowances.

Value Added Tax (VAT)

VAT is a tax on the final purchase of specific goods and services in the domestic market. It is collected at all stages of production and distribution, and as a result, most business-related items and services will be liable for VAT. Any business with a turnover of more than £85,000 must pay VAT.

PAYE

Pay As You Earn (PAYE) is a scheme run by HM Revenue & Customs that allows employees to pay income tax as they earn it. Tax Planning for Business is essential for individuals who are self-employed, such as sole proprietors, as they are not subject to PAYE. You will self-assess your earnings and file a tax return.

However, if you own a limited firm and get paid, you are an employee (even if you are a director). In this case, you must understand PAYE, and your responsibilities as an employer. It’s a very intricate subject with many rules, and you ought to get professional counsel on your specific situation.

Capital Gains Tax

On April 6, 2008, the government imposed a fixed 18% CGT rate on corporate disposals. However, the entrepreneurs’ relief plan, which is a crucial element of Tax Planning for Business, permits business owners to pay a reduced rate of 10% on business disposals up to a lifetime maximum of £1.

Most businesses buy and sell assets throughout the tax year, meaning capital gains tax must be considered. This is especially crucial for real estate-related enterprises. Not only will you know which assets are exempt if you prepare ahead, but you will also prevent a surprise bill at the end of the tax year.

Stamp Duty

Businesses may be required to pay Stamp Duty on several transactions. This includes the transfer of chargeable securities such as corporate shares, land interests in land, lease grants or assignments. These are divided into two types of stamp duty: Stamp Duty and Land Tax. This applies to renting or buying premises. This tax can easily catch small enterprises and startups off guard. You may be subject to a stamp duty reserve tax when you buy shares or other securities.

Benefits of Tax Planning for Business

Tax planning is essential in any business sector since it helps lower tax liability and maximises profit. Extensively, Tax Planning offers some other benefits of imposing proper tax planning:

You Can Change Your Business Structure

Changing your company’s tax structure can be the simplest way to save money. When a business owner reaches a particular income level, it becomes more beneficial to be an S-corporation rather than a sole proprietorship or partnership.

Numerous factors might influence your decision. And to avoid taking the wrong step, you must seek consulting from Pearl Lemon Accountants. Our skilled and talented team lets you make business-friendly decisions to refurbish your business model in the most profitable way possible.

Advanced Premium Tax Credit

Do you get credit for your marketplace health insurance?

If your income is too high, may be required to repay the credit to the IRS. Using any of the corporate or personal measures to cut your income could help avoid this from happening. The peace of mind that comes with knowing you won’t have a huge tax burden at the end of the year is easily worth a fast tax preparation appointment.

Improve Decision Making

Tax Planning for Business ensures you are more knowledgeable to make excellent business decisions. Many tax experts have emphasised the need for firms to have a proper long-term plan to decrease taxes while remaining economically efficient.

Save More Money

When Tax is imposed correctly, you can minimise litigation and ensure that you pay the right amount of tax. Therefore, saving you a lot of money. And with knowledgeable consultation from professional tax planning services, you save your resources and maximise them to give excellent Returns On Investment (ROI).

Grow Your Business

Businesses can save taxes through effective Tax Planning and use that money to improve their operations. It provides greater flexibility and the capacity for organisations to expand and grow. Businesses may find themselves where they do not have to worry about funding other aspects of their operations. Your business would thrive with minimal costs and maximum profit.

Our Tax Planning Services

Here at Pearl Lemon Accountants, we love seeing businesses reach their goals without worrying about tax compliance. Here are some of the tax planning services we offer.

Corporate Tax Planning

Corporate tax policies are complex and constantly changing. Tax Planning for Business is essential for lowering your company’s tax liability. Our tax specialists are highly qualified, business-minded, and skilled in lowering tax costs, so you can be confident that you are in excellent hands.

Pearl Lemon Accountants provide a comprehensive corporate tax compliance service to ensure that your firm is structured in the most tax-efficient manner possible and that your corporation tax liabilities are kept at a minimum.

HMRC Tax Investigations Advice

When a tax investigation begins, get professional assistance as soon as possible unless you are confident of your position. Investigations frequently result in unexpectedly huge tax liabilities, insolvency, and the need for a payment plan, a voluntary corporate arrangement, or a creditors’ voluntary liquidation.

We can help you avoid all unnecessary costs like HMRC payments or need help dealing with HMRC threats related to VAT, PAYE, self-assessment, or corporation tax concerns. We ensure that you never face an HMRC tax investigation in the first place.

International Tax Planning

If you run an international business worldwide or operate outside the UK, our international tax experts can help you save on local and foreign taxes. Using a global tax strategy, we’ll ensure you cater even for minor costs possible.

We have some of the best international tax professionals 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 overseas. You can contact us to assist you in saving money on taxes all across the world.

VAT Accounting

Pearl Lemon Accountants will spend time ensuring that your company pays all necessary and accurate taxes. This includes HMRC, VAT, and all VAT registration requirements for the optimal VAT scheme for your company are followed.

Our VAT accountants also provide critical guidance and answer all your inquiries throughout the tax year, saving you time and frustration when dealing with complex VAT processes. Because of the enormous amount of goods and services that relate to VAT, the services of such a team can be invaluable (and save you a lot of money)

Are you looking for something else? Book us a call, and we’ll help you with your accounting-related problems.

FAQs

What are the types of tax planning?

There are two types of tax planning: tax avoidance and tax minimisation.

Tax avoidance is a type of tax planning that seeks to lawfully avoid or reduce the tax you must pay. The focus should be on lowering tax liabilities while not breaching any rules.

On the other hand, tax minimisation assumes that you must pay some tax but seeks to lower the amount of tax you must pay as much as feasible within the UK’s legal boundaries.

How much are your business tax planning services?

The cost of tax planning services varies depending on the business. However, if you require more information directly relevant to your business, contact us today!

When should tax planning be done?

It is critical to plan your taxes as soon as you start earning. To reap the most benefits from tax planning, it is critical to understand and evaluate all possible investment possibilities. You could start with business year end planning to help you with your tax bill. Execute proper tax planning and reap all the benefits with a professional. Contact us today to find out more.

When you're thinking about starting a building company or your career as a builder, an innovative financial strategy is essential, rooted in accounting basics.

If you have an effective financial plan, you can reduce your administrative duties so they do not overshadow your customer relationships and ability to work independently. You can use accounting basics to reduce your company's costs, increase your profitability, and minimise your tax liability when you establish this strategy early in your company's lifecycle.

So if you want to build up your business's account, you need an accountant by your side.

We can be that accountant for you. Contact Pearl Lemon Accountants today!