We’re an accounting business that’s been established for more than three decades. As you might expect, our team is highly knowledgeable on a multitude of subjects. People even consider us the best establishment working in tax returns Harringay has. So, if this is something you are having trouble with, you can count on us to help.
Taxing businesses
Corporation tax is one many businesses hate hearing about. It is a UK business tax limited companies must pay to HMRC based on their annual profits. Some societies and clubs must also do this. In addition, it needs to get paid on profits businesses make from selling capital assets for more than they cost or investments.
Once your company begins making a profit, you begin paying corporation tax. The exception is if you previously had losses. This is like an income tax for companies, only they don’t benefit from a tax-free allowance. Thus, all their profits are taxable. Corporation tax isn’t new, having been around since 1965. Rates hit a peak in 1982 at 52%.
Something about this topic people are curious of is whether they can reduce their business tax. We intend to discuss the matter here.
Tax evasion is illegal
Before we continue, you must understand that evading any kind of tax is illegal. Corporation tax is as a mandatory business tax. Saying this, there are legitimate ways for you to lower the amount you must pay. This tax in particular tends to be one of the largest bills a company encounters. As a result, taking steps to legally lower it can be massively beneficial.
Allowable expenses
One thing you can do is claiming allowable expenses incurred solely for business use. Employer NICs and salaries count as business expenses too. In deducting this, it minimises the quantity due in tax and reduces the bill.
Salaries
Another step would be drawing a salary. Like we already said, employer NICs and a salary are business expenses so there are taxes. Various company owners opt to pay themselves through dividends instead. They aren’t a business expense and can reduce tax.
Offsetting
You can offset trading losses against capital gains as well. Get a tax relief by offsetting your loss against other profits or gains in the same accounting period. You can even opt to carry the loss back.
Pay early
Finally, you could pay HMRC early. If you do, they may repay some of it as interest. This tends to be calculated from the date you pay through to the deadline.
Speak to us about tax returns in Harringay
At Brian G Lonis & Co, we strive to offer high value, cost efficient solutions to every client. We tailor our services to meet your needs too. This allows us to tackle problems specific to you.
So, if you’re in need of the greatest services for tax returns in Harringay, let us know. We can support any size business, offering value for money with every service.