CORPORATION TAX: COULD YOU BE MISSING OUT ON TAX RELIEFS?
Released On 11th Apr 2022
Knowing which taxes your business is liable for can feel a bit overwhelming, which can result in you not recognising opportunities to save on tax.
If you have a limited company or a foreign company with a UK branch, you will be liable to pay Corporation Tax on any profits.
Clubs or unincorporated associations should also report and pay Corporation Tax.
With the new Making Tax Digital requirements, it is easier for businesses to track their finances and any tax due; however, there is still the possibility of missing out on tax reliefs.
Luckily, our experts have highlighted some of the key reliefs that your business could claim:
Capital allowances
You may be eligible to claim capital allowances on any assets that you buy for your business, such as machinery and equipment (including business vehicles).
Other business costs, including running costs, items that are bought for trading purposes, and interest payments can be claimed as business expenses instead.
Research and Development
Businesses that opt to seek innovative ways to reform the science and technology sectors could claim tax reliefs, even if the project is unsuccessful.
For these research and development (R&D) projects, they must aim to influence change in the field overall, rather than just impacting the individual business.
Dependent on the size of the business, you may be eligible to claim these R&D reliefs:
Creative industry tax reliefs
For businesses in the creative industry, such as films and television, there is the potential to reduce the amount of tax owed.
The Government has outlined eight Corporation Tax reliefs that you may be able to claim, which can be viewed here.
Ahead of 2024, there are set to be reforms to the tax reliefs and allowance, as announced by the Chancellor in the Spring Statement.
In fact, Rishi Sunak mentioned that there could be further reforms to R&D Tax Reliefs to be announced in the next Budget.
Contact our expert team if you require assistance with recognising and applying for tax reliefs.
