Smart tax planning delivers instant savings and cash flow benefits. This month we’ve selected 10 top tips that could save your business thousands, and will continue to provide new ideas and advice in future editions. However, if we haven’t covered your situation here, or you would like an in-depth discussion with one of our tax experts, please feel free to get in touch.

  1. Avoid having unnecessary associated companies – consider using LLPs where a separate legal entity is necessary. (Bear in mind this can impact on tax and timing of tax payment.)
  2. If you have losses in one company and profits in another, use group relief. If companies aren’t grouped consider a tax free reorganisation.
  3. Review the timing of capital expenditure on plant and machinery to ensure that your Annual Investment Allowance is fully utilised. This will reduce sharply from April 2012. Click here to find out more.
  4. If losses are made remember to carry back where possible to get a tax repayment as this will impact on cash flow, and future profits aren’t always guaranteed.
  5. Consider paying remuneration or bonuses earlier to accelerate tax.
  6. Consider making pension contributions on behalf of directors and key employees.
  7. Claim research and development expenditure relief where possible as there are enhanced allowances available.
  8. Buy equipment and cars qualifying for 100% first year allowances where possible.
  9. The window for Capital Allowance reviews on business property is likely to be closing as regulations are expected to change as from April 2012. This means that large Capital Allowance claims relating to fixtures and fittings are likely to be significantly reduced so act soon.
  10. If you have purchased or are constructing a building have you ensured maximum capital allowances are claimed particularly on fittings and other integral features