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Corporation Tax | Watts Accountancy

Corporation Tax

Careful planning of business activities can significantly reduce the corporation tax bill and thus increase retained profits for many UK businesses. By beginning a structured planning scheme, you can help to ensure that the maximum available profits stay in your company, and reduce the chance of overpaying Corporation Tax to the HM Customs & Revenue (HMRC).

Many companies are members of groups for trading purposes, but before setting up such a structure, careful consideration should be given to the potential impact this will have on tax. With differing corporation tax rates, group structures make this task complex, as each group member will require individual advice and the overall tax impact will require detailed reviewing before committing to any such structure.

Other tax saving opportunities arise when you are considering selling your business. Depending upon the nature of the sale, ensuring the proper company structure before sale can reduce the tax charge considerably. So if you are contemplating a sale, please seek professional advice on whether a reorganisation of your company would be beneficial.

Even with smaller companies, not all shareholders will have the same needs when it comes to extracting value from their company. It is therefore important to structure the company’s share capital in the best way and to ensure that tax efficient remuneration packages are designed for the owners.

For more information on planning for Corporation Tax, the benefits, and adhering to HMRC legislation, which changes constantly.