Friday 3rd May 2024
Here are 5 ways that can help you to reduce your corporation tax:
Pay Yourself a Tax-Efficient Remuneration
As the owner or director of a Limited Company, you can reduce your Corporation Tax Liability by paying yourself a salary, or a combination of salary and other types of remuneration that are allowable as business expenses.
Claim All Costs of Sales
You can reduce your Corporation Tax liability by claiming a wide range of expenses that are incurred 'wholly and exclusively' for your business.
Claim Costs of All Overheads
This is a much wider category of allowable expenses and covers all the costs of running your business. Generally, these include:
-Employee Wages and Salaries
-Employee Benefits
-Communication Costs
-Energy and Utility Charges
Claim Work From Home Allowances
The pandemic made many businesses realise the benefits of working from home and many people have continued the trend, either working permanently at home or splitting their time between office and home in a 'hybrid working' arrangement.
Set Up A Company Pension Fund
One of the most important employee benefits is a company pension scheme. Both employees and employers make contributions and your employer contributions are classified as allowable expenses that can be deducted from profits.
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