UK Corporation tax rates and bands are as follows:
Corporation Tax Saving Tips
Bringing forwarding planned expenditure
By bringing forward any planned expenditure in to the company’s current accounting period can result in that expense being eligible to reduce this year’s corporation tax liability. If the expense was delayed until after the company’s financial year end, it would not have an affect on the tax charge until next year.
Expenses which could be brought forward in this manner could include:
- Bulk orders of stationery which occurs periodically.
- Repairs and maintenance that needs to be carried out sometime in the future.
- Payments of staff bonuses and other discretionary awards.
- Expenditure on capital items such as furniture, computers and other items which will qualify for capital allowances.
The affect of the above should be considered after having due regard for the business’ cash position and its ability to finance these tax efficient initiatives.