Ultimate Tax Savings Guide for UK software & Tech Businesses

Most start-up tech businesses can receive an average of £124,000 cash or cash equivalent with prudent tax planning and successful grant applications.

This article includes the following sections – 

1. About us

2. Ultimate tax savings concepts

Employment allowance relief
Super deduction allowance
R & D tax credit
Company losses to carry back
Investment in electric car
Salary sacrifice pension scheme

3. Director’s tax planning

4. How Price & Accountants can help

5. The most common mistakes

6. Our process: start to series A funding

7. Our on boarding process

Ultimate tax savings concepts for small businesses

I Claim up to £5,000 with the employment allowance relief Employment Allowance is a tax relief which allows eligible businesses to reduce their National Insurance contributions (NICs) bill each year. You can claim this if you’re a business, and your employer Class 1 National Insurance liabilities were less than £100,000 in the previous tax year. From April 2022, the Government has increased the Employment Allowance relief from £4,000 to £5,000 to further benefit SMEs.

II Invest in your business with super-deduction allowance: To spur business investment, the Government has introduced a new allowance which enables companies to cut their tax bill by 25 pence for every £1 they invest in any qualifying machinery and equipment. This can include the purchase of computers, most commercial vehicles and office furniture and can be claimed in the year of purchase.

III Invest in software development – cash back on the eligible expenses:
Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation.
a. Most loss making businesses claim R&D rebate which works out 33pm for every £1 spend on R&D.
b. You can choose to reduce your corporation tax liability using the R&D claim. Business must be profit making to……

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