Any earnings made by a UK-based limited business (or a UK branch of a foreign corporation) are subject to Corporation Tax, so trying to keep track of all the taxes your company is responsible for may be tricky sometimes, and this can lead you to miss out on tax savings opportunities.
Although the new Making Tax Digital standards have made it simpler for companies to keep track of their finances and any tax they owe, there is still a chance that they may lose out on tax reliefs.
So we have pulled together some of important tax benefits that your company may be eligible for:
Research & Development (R&D)
There may be tax benefits for companies who attempt to improve the scientific and technology industries even if their efforts are unsuccessful. Rather than focusing just on a single company’s bottom line, these R&D initiatives must strive to affect the whole industry.
Based on the size of your business, you may be able to get these R&D tax reliefs:
If you purchase machinery or equipment for your company, you may be able to claim capital allowances on that expenditure (this includes business vehicles).
Other company expenditures, such as operating costs, purchases made for trade purposes and interest payments, might instead be claimed as business expenses.
Creative Industry tax reliefs
There is the potential to minimise the amount of tax payable by firms in the creative sector. To help you out, the government has put up a list of eight different types of Corporation Tax reliefs. These are:
- Film Tax Relief
- Animation Tax Relief
- High-end Television Tax Relief
- Video Games Tax Relief
- Children’s Television Tax Relief
- Theatre Tax Relief
- Orchestra Tax Relief
- Museums and Galleries Exhibition Tax Relief
You can view more information on creative industry tax reliefs on the dedicated government page here.
If you require further help with being as tax efficient as possible, get in touch with our team at firstname.lastname@example.org