What tax reliefs could your business be claiming?

Tax reliefs are a way to reduce your corporation tax and personal tax by offsetting expenditures against your tax bill. As a business, it is important you claim what you are entitled to, as HMRC will not typically signpost these tax reliefs. Make sure your accountant is maximising your tax reliefs or speak to an expert, like Complete Capital Allowance.

Here is a summary of the main tax reliefs from HMRC:

1. Tax Deductible Business Expenses

From stationery to office equipment, heating and lighting to insurance and bank charges, business expenses are the costs you typically incur in the day-to-day running of a company. 

2. Research and Development Tax Credits

If you invest in the research of new products, software solutions and scientific breakthroughs, you may be able to claim tax relief. Even if your product is unsuccessful, you can still make a claim. The government wants to encourage business innovation, which is why these reliefs are available.

3. Gift Aid

If your business donates to charity you can claim gift aid tax relief in qualifying donations.

4. Business Rates Relief

Business rates are a significant expense for businesses occupying commercial properties. However, various relief schemes exist to alleviate this financial overhead. Businesses may qualify for relief on rates for specific types of properties, such as small businesses, vacant properties, or those undergoing redevelopment. Understanding and leveraging these relief schemes can result in substantial tax savings for businesses.

5. Corporation Tax Relief

When you prepare your company accounts, you can deduct the costs of running your business from your profits before tax. This could include buying machinery or tools for your business.

6. Pre-Trading Expenses

Exactly as it sounds, if you are setting up a new business, you may incur costs prior to launch. You can claim relief on these products and services in your first tax return.

7. Reclaiming VAT 

If you are VAT registered, you can claim VAT on business expenditures on your tax return. This may include plant and machinery, office supplies, and other VAT-vatable items purchased for the business.

8. Commercial Property Capital Allowances

Capital allowances play a crucial role in reducing tax liabilities for businesses investing in commercial properties. These allowances cover expenditures on fixtures, fittings, and integral features within commercial buildings, such as heating systems, lighting, and security installations. Although often included in the purchase price of the property, these can be split out for the purposes of making a capital allowance claim. As a result, businesses can maximise tax savings and improve their overall financial performance.

9. Land Remediation Relief

Aimed at regenerating brownfield sites, contaminated land and environmental eyesores, Land Remediation Relief (LRR) was introduced by HMRC in 2001 and updated in 2009. LRR allows businesses to claim up to 150% corporation tax relief on the costs incurred during the decontamination of land or buildings. This means that for qualifying expenditures, you can enjoy a deduction of 100% and an additional 50% against your corporation tax.

In summary, make sure your business is maximising the tax reliefs it is eligible to claim. At Complete Capital Allowance, we can help you with capital allowances and land remediation relief (LRR).