Managing tax is probably not the part of running your business that gets you out of bed in the morning, but saving money should be something you’re keen to do.

The trick, in my opinion, is to be strategic – taking advantage of quick wins where you can, while planning for bigger, long-term savings.

Are you claiming everything you can? 

This might sound basic, but you’d be surprised how many SMEs miss out on claiming everyday expenses.

HM Revenue & Customs’ (HMRC’s) rules are fairly simple – if it’s wholly and exclusively for your business, it’s deductible – with some exceptions.

So, things like office supplies, software subscriptions, travel costs – even protective equipment for your employees – can be deductible from your tax bill.

For example, I once had a client who hadn’t been claiming for maintenance costs on their company vehicles.

When we reviewed their records, they ended up with a refund that significantly boosted their cash flow for the quarter.

And if you have business premises, it’s not just the rent you should claim, how about utilities, repairs and business rates.

These everyday costs may not seem significant individually, but over time they can make a big difference to your overall tax position.

Don’t sleep on your available tax reliefs 

Now for the bigger picture stuff.

Research & Development (R&D) Tax Credits are one of the most underused reliefs I’ve seen.

So many people assume their work doesn’t qualify, but you don’t need to be inventing flying cars to claim it.

If you’ve solved a tricky problem or developed a better way of working, you could be eligible.

For example, a business operating within the hospitality sector who has improved their booking system to manage no-shows more efficiently.

They could save a lot in tax by claiming R&D relief for the time and effort they spent getting it right.

Because R&D tax credits are a particularly complex relief, we’d be happy to put you in contact with experts who can guide you through it – it’s best not to handle this on your own!

Equally, there’s the Annual Investment Allowance (AIA) where, if you’ve invested in new equipment, machinery, or even furniture, you can deduct the full cost from your taxable profits in the same year.

Timing matters here, however, so if you’re planning purchases, think about whether you can bring them forward to maximise the benefit.

Plan for the long game 

Tax isn’t just about the here and now – it’s also about future-proofing your finances.

Take business restructuring, for example.

If you’re considering a change in ownership, merging with another company, or setting up a subsidiary, proper tax planning can ensure that you optimise reliefs like group relief or roll-over relief on gains, potentially saving significant amounts.

Another area to think about is Corporation Tax.

Changes to the rates and thresholds over time can impact your business’s liabilities.

Proper forecasting and planning can help you decide when to realise profits or reinvest in your business to minimise your tax bill.

VAT hacks to simplify your life 

If you’re VAT-registered, are you reclaiming VAT on all your business purchases?

It sounds obvious, but I’ve seen plenty of businesses miss this step and end up paying more than they should.

And if you’re under the £150,000 turnover threshold, the Flat Rate Scheme could be worth exploring.

It simplifies VAT reporting and can save you money if your business doesn’t have high expenses.

Small steps, big impact 

The thing about tax planning is that it’s not just about the big wins and the major money savers – sometimes it’s about small wins that build over time.

In essence, it’s about consistently making the most of every opportunity available to you.

If this all sounds like a lot to keep track of, that’s where your accountant comes in.

We’re here to help you spot what you might have missed and give you the tools to save – not just this year, but every year.

So, if you are ready to put some of these ideas into action, please get in touch.