Tax strategies for year-round planning

Tax strategies for year-round planning | 2-minute read

Tax planning is not just a once-a-year task. It’s an ongoing process that can help small businesses see significant savings throughout the year.

While its common to focus on tax savings in early spring as the end of tax year approaches, most business owners don’t realise the importance and value of ongoing tax planning throughout the year.

A proactive tax planning strategy allows businesses to make informed financial business decisions, maximise savings and minimise tax liabilities.

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There are various strategies that business owners can implement for the best tax savings and long-term tax reduction.

This blog will mention three tax planning strategies, you may want to consider for your business through the entire year.

What is tax planning?

Tax planning is a proactive measure that helps businesses manage their taxes. It involves calculating and evaluating income, investments, expenses, and deductions. The goal is often to reduce tax obligations while also maximising benefits and advantages available under tax laws.

The benefits of tax planning

A proactive approach to tax planning presents many benefits to individuals and businesses. Tax planning provides the opportunity to reduce the amount of tax owed. By freeing up cash and additional funds, businesses and maximise profits and make the most of their money.

Additional benefits of tax planning include:

  • Increased savings
  • Tax advantages
  • Asset protection
  • Ongoing tax law compliance

3 Tax strategies for year-round planning

Utilise tax relief and allowances

Businesses can take advantage of various tax relief schemes and allowances to reduce tax liability. For example, businesses actively engaging in research may qualify for the Research and Development tax credits.

Similarly, businesses that employ people/others may be eligible to claim Employment Allowance to reduce National Insurance liability. Additionally, if a business hires an apprentice or veteran, they may qualify for further support from HMRC.

By identifying available and relevant tax credit initiatives, businesses can reduce their tax bill and optimise tax throughout the year.

Maximise retirement contributions

Business owners can also maximise their retirement contributions to reduce taxable income and save for retirement. Pension contributions are taken before you are taxed, so business owners that maximise contributions will pay less tax while setting up for the future.

This also means business owners will receive immediate tax relief and will not need to claim back tax.

Work with a financial professional

Working with a financial professional, such as React Accountancy, to create tax planning strategies for year-round planning offers many benefits.

With access to expertise and experience, businesses will be provided custom solutions tailored to their unique needs and goals. Financial professionals also have a good and clear understanding of tax incentives, deductions, and credits available to businesses.

By outsourcing tax planning to a qualified professional, businesses also gain peace of mind and mitigate tax risks.

Why choose React Accountancy?

At React Accountancy, we provide practical and value for money accounting services to our clients.

We have years of experience in the industry and are experts when it comes to dealing with Companies House and ensuring that our clients are fully compliant with the latest regulations.

We believe in providing a no jargon accounting service and have an open and honest relationship with our clients. Our accountants are dedicated to helping you make the most of your money.

From tradespeople to small businesses, and everything in between, we fully understand the complexities of accountancy and that’s why we offer a wide range of accounting services.

To find out more about how we can help, get in touch with the expert team today.

We provide our services across ManchesterStockportLondonBirminghamCardiffBristolGlasgowLeedsNottinghamLeicesterEdinburghSheffieldBradfordCoventryLiverpool and Belfast.

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We believe in working with our clients to make accountancy services easy. Get year-end accounts, CT600 corporation tax, payroll, bookkeeping and management accounts made easy.