Tax tips: claiming business reliefs, avoiding 60% tax rate

20 Jan 2015

As the new year kicks off, Lee Watson, senior tax manager at Clive Owen LLP, runs through his top ten tax tips for businesses from making the most of research and development tax credits to avoiding the 60% income tax trap

It really pays for business owners to take time out and focus on whether they are making the most of tax saving opportunities as they may be surprised to learn what their businesses can qualify for.

1. Business structure

Whether you trade as a sole trader, partnership or limited company, there could be tax savings to be made by changing the business form. For example, a sole trader with increasing profits could save tax, therefore leaving profits to expand the business by trading through a limited company. Or vice versa, a director operating a limited company with reducing profits, may be better off by trading as a sole trader.