Corporation tax
The year-end tax planning checklist for limited companies
The single biggest reason owners overpay corporation tax is timing. By the time most accountants prepare the return, the year has closed and the number is fixed. Almost every lever that lowers the bill has to be pulled before the year-end. Here is what to review while there is still time.
Capital purchases and allowances
If you are planning to buy equipment, vehicles or other qualifying assets, the timing relative to your year-end can change when you get tax relief. Capital allowances are one of the most valuable and most overlooked reliefs, so it is worth reviewing what you intend to buy and when.
Pension contributions
Employer pension contributions can be a tax-efficient way to extract value from the company while reducing its taxable profit. They generally need to be paid before the year-end to count for that period, so this is a classic decision that cannot wait until the accounts are prepared.
Salary, dividends and bonuses
- Review the salary and dividend mix for the directors before the year closes
- Consider whether a bonus is more efficient than a dividend in your situation
- Check the timing of dividends across tax years where it helps your personal position
Reliefs you may be missing
Capital allowances, the use of losses, and other reliefs are frequently left unclaimed simply because nobody looked. A proper year-end review checks whether you qualify for anything you are not already using.
Want this applied to your own numbers?
Book a free 30-minute call and we will tell you, honestly, where your biggest tax wins are.
Plan before the year closes
Every business is different, and the right move depends on your full financial picture. Book a free 30-minute call and we will tell you, honestly, where your biggest tax wins are.
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