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……