“I don’t want to evade tax, but I do want to pay only what I legally owe. What strategies does an accountant use to reduce Corporation Tax?”
Solution (Accounting Service):
Accountants use fully legal, HMRC-approved (or IRS-approved) planning strategies:
Pension contributions – Director and employee pension contributions are deductible expenses. Example: A £40,000 pension contribution saves £7,600–£10,000 in Corporation Tax (depending on the 19–25% rate).
Capital allowances – Claim 100% first-year allowances on qualifying electric vehicles, charging points, and energy-efficient equipment.
Research & Development (R&D) relief – Claim up to 27% of qualifying R&D costs back as a tax credit or deduction.
Loss relief – Carry back trading losses against previous profits (up to 3 years in some jurisdictions) or carry forward indefinitely.
Group relief – If you have multiple companies, offset losses in one company against profits in another.
Timing of income and expenses – Accelerate deductible expenses (e.g., repairs, bonuses) into the current year and defer income to the next year.
Client solution: Your accountant prepares a pre-year-end tax planning report (typically October or November for December year-ends). We model different scenarios and recommend specific actions before the year closes. The fee is usually £500–£2,000, but the tax saved is often 3–10 times that amount.
- Ideal for small businesses or startups
- Monthly/Quarterly strategy sessions
- Comprehensive consulting services
- Designed for established businesses
- Full range of consulting services
- Priority email and phone support
Call to Action
Worried about your upcoming Corporation Tax bill? Book a pre-year-end tax planning review with our accountancy team. We’ll identify legitimate savings before the deadline passes.
