We get it. You didn’t start your business because you love tax. You started it because you’re good at something, and you wanted to build something for yourself. But like it or not, tax is part of the package, and if you don’t give it the attention it deserves, it can quietly gobble up more of your profits than it should.
Now, I’m not here to scare you into action. I’m here to show you that, with a bit of planning (and the right advice), you can reduce your tax bill, stay on the right side of HMRC, and keep more of what you earn. Legally. No dodgy schemes, no sleepless nights.
This tax guide for growing businesses pulls together some of the best advice we’ve published. From the everyday tax-saving opportunities you might be missing, to the bigger decisions that come into play when it’s time to exit or sell. It’s your one-stop shop for business tax wisdom that won’t send you to sleep.
Tax-saving tactics while you’re running your business
Let’s start with the good stuff. These are the things you can do now to make your business more tax-efficient, without selling your soul or sacrificing your morning coffee budget.
1. Salary sacrifice scheme
There’s a way to offer your team valuable benefits (like extra pension contributions or electric vehicles) while reducing your National Insurance bill. It’s called salary sacrifice. If your accountant hasn’t mentioned it, they’re missing a trick. Read all about it in our blog: How to save tax with salary sacrifice, and why your accountant should be telling you about it.
2. Cycle to work scheme
The humble bike isn’t just good for your health, it’s also good for your tax bill. Employees get a tax-free perk, you reduce your NI costs, and you look like the kind of employer who cares about sustainability. Everyone wins. If you want to know more about how you can benefit from this scheme, here’s our blog on the subject: Cycle to work scheme, why your accountant should be talking about it.
3. Tax rebates
If you’ve paid too much tax, and plenty of business owners do, you could be due a rebate. Yes, really, you might be owed money. It happens, but don’t expect HMRC to come knocking. You have to know what to ask for and how to claim it, and that’s what we cover in our blog titled: Can I get a tax rebate?
4. Corporation tax
This wouldn’t be a good tax guide for growing businesses if we didn’t cover corporation tax. Especially since a recent report showed businesses are overpaying by £1.36 billion! And that’s not a typo either. There are legitimate ways to reduce your corporation tax bill so you’re not paying more than you need to, but you’ve got to be proactive about it. Here’s a blog to help: Want your share of a £1.36 billion reduction in your corporation tax bill?
| Got a sneaky suspicion you’re overpaying? Get in touch today to get a second opinion on your current tax strategy. |
Tax planning when it’s time to exit
Whether you’re selling up, passing the reins to your team, or just making sure your legacy doesn’t leave a tax mess behind, there’s a lot to think about when deciding how and when to exit your business. The good news? This is where long-term planning pays off. Literally.
1. Selling a business? Don’t forget the taxman
Selling your business isn’t just about the deal you make; it’s also about how you structure that deal to avoid handing over a chunk of it to HMRC. A little planning here can make a big difference, so read our blog: Considering selling a business? Don’t forget the tax implications.
2. Management buyouts
If your team is buying you out, great! But it’s important to know that it’s not as simple as just agreeing a price. There are serious tax consequences for both sides, and they need to be considered and managed properly. Here’s what you need to think about: Management buyout? Key tax considerations for management.
3. Estate planning:
No one likes talking about inheritance tax, but ignoring it doesn’t make it go away. If you want to protect what you’ve built and make life easier for the people you leave behind, it pays to plan ahead. Here’s everything you need to know about it: Estate planning and inheritance tax – why you need to act now.
A final word on tax (yes, you can stop reading soon)
Tax doesn’t have to be a thorn in your side. In fact, with the right approach, it can become something you actively manage, not something you dread every January. Whether you’re in growth mode or planning your exit, this tax guide for growing businesses is your reminder that there’s usually a smarter way to do things.
| Want to pay less tax and sleep better at night? That’s where we come in. We help business owners like you plan ahead, stay legal and keep more of what you’ve earned.[email protected] |
