Nobody likes paying tax. You might be happy that you are contributing, or giving something back, but tax, especially corporation tax, is always an unwelcome overhead. There are ways of reducing the amount of corporation tax you have to pay. However many companies pursue these focusing only on the end goal of lowering their tax. But are the things they are doing with the money actually helping their business?
Is your potential tax going to a good place?
Because tax is often viewed as a shadow over your business, it is easy to focus simply on reducing it. But there is no point in spending more money, and incurring more expenses, just to lower the amount of tax you have to pay. You might as well give that 20% to the government rather than spending it just for the sake of spending it.
Here’s what we can provide to help you lower your overheads whilst benefiting your business.
Strategy
It is important to take the time to consider where your profit is going. What are the benefits going to be to your business of spending it in certain areas? Rather than simply reducing your tax bill you want to look at increasing the output of your business. Are you using the money in a way that will increase productivity, output, efficiency, or client service?
In order to effectively do this you need to have a strategy in place. Having carefully considered all the options you will be able to focus on the most important areas of your business that need support or could benefit from improvement. We can help you formulate this kind of strategy to ensure your money is being spent in the best possible way.
Timing
You might not give much thought to the timing of the transaction. However timing can often play a role in the amount of tax that you have to pay. This is one of the benefits of having a strategy in place. We can advise you on the best times to make certain purchases and carry out transactions. Such a simple thing as changing when you make certain transactions could reduce your overheads.
Knowledge
We have a thorough understanding of the UK tax system. This means we know of all the advantages and relief systems that are in place, which as a business owner and you may not even realise exist. Our knowledge allows you to benefit from the systems the government has put in place in order to help businesses like yours. You could find that simply having access to a greater understanding of how the tax system works can instantly make you large savings.
Tax advisers in Cheshire
If you want to more efficiently manage your overheads and look at reducing your tax, talk to us. We are responsible professionals who work with you to ensure the smooth operation of your business. Contact Watkinson Black your local accountants today for more information.