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1. Make a claim for R&D tax credits.

Is your company ensuring that it does not miss out on government-sponsored tax breaks for innovation?

 

If your company hires technical people to tackle technical difficulties, such as building new or improved processes, products, or software, you might save roughly £25,000 in corporation tax for every £100,000 invested in innovation. Research and development allowances (RDAs), if you’ve paid for research facilities or equipment, may potentially qualify for tax benefits.

 

These reliefs are highly substantial, and our Radius team has a straightforward and successful track record (100 percent success rate with R&D tax relief applications submitted) in obtaining them for our customers.

Download our eligibility checklist to see whether you’re eligible to file a claim. To see if you’re qualified for a claim, you’ll need to answer 11 easy questions and give us 10 minutes of your time.

 

You may also use our free and interactive R&D tax relief calculator to see how much R&D tax relief your firm is eligible for.

 

1. Is it possible to get a tax reduction under the Patent Box?

Is your company profitable because of patented inventions? You could be able to claim Patent Box tax reduction and pay an effective corporate tax rate of 10% on those profits.

 

 

 

1. Make sure you don’t miss any deadlines.

Certain tax reliefs, including as R&D tax reliefs, capital allowances, and patent box relief, are often claimed two years after the end of an accounting year. Before it’s too late, businesses should double-check that they’ve claimed all of their entitlements to these tax breaks. See the entire blog.

 

1. Make an investment in plants and machinery.

Businesses can take advantage of the “Annual Investment Allowance” (AIA), which allows them to claim immediate tax savings on certain company assets up to a particular level. The AIA was raised to £1 million on January 1, 2019, allowing businesses to deduct a considerable portion of the cost of qualified products from their earnings.

 

 

 

1. Property capital allowances

From October 29, 2018, businesses can claim a 2% straight-line write-down allowance on new commercial building spending (rising to 3 percent for expenditure from April 2020).

 

Companies should analyze the expenditures made previous to this to see if any of them qualify for capital allowances on their own.

 

1. Don’t forget to include any business costs in your claim.

It may seem self-evident, but don’t forget to include any costs in your accounting records. We frequently discover that directors spend costs on behalf of the company but do not claim them through the accounting records.

 

 

 

1. Salary Packages for Directors

By extracting a tax-efficient combination of pay and dividends from the firm, business owners can maximize their personal allowance.

 

 

    8, Contributions to a pension

1. Pension payments put into pension plans on behalf of workers or directors can usually be deducted from a company’s profits. To qualify for relief, payments must be made before the end of the accounting period. This is a simple method for lowering Corporation Tax.

 

Any employee who uses their own vehicle for business can claim expenditures from the company tax-free, based on statutory rates per mile of;

 

At 45p per mile, you may travel up to 10,000 miles every year.

At a rate of 25p per mile, you may go almost 10,000 miles

 

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