Tax Planning

Effective tax planning is essential for every business aiming to maximise profitability, ensure compliance, and support long-term growth. At Reaveley Cooper Accountants, we specialise in proactive tax planning for UK businesses, helping you navigate the latest HMRC rules and take advantage of all available reliefs and allowances.

Why Tax Planning Matters for Your Business

Tax planning is about more than just minimising your tax bill. It’s a strategic process that involves organising your finances, structuring your operations efficiently, and making informed decisions that benefit your business now and in the future. With frequent changes to tax laws and rates, a forward-thinking approach is crucial to stay compliant and competitive.

Key Tax Planning Strategies for 2025

• Understand Corporation Tax Bands and Marginal Relief

  For the 2025/26 tax year, corporation tax rates are 19% for profits up to £50,000 and 25% for profits over £250,000. Profits between these thresholds are taxed at a tapered rate, with Marginal Relief available to reduce your liability. Accurate forecasting and timing of income and expenses can help manage your effective tax rate.
  
  

• Claim All Available Capital Allowances

  Invest in qualifying business assets, such as machinery, vehicles, or equipment, to claim capital allowances and reduce taxable profits. This is especially valuable for businesses planning significant capital expenditure.

  
  

• Utilise R&D Tax Credits

  If your company invests in innovation or product development, you may qualify for Research & Development (R&D) tax credits. From April 2024, the SME and RDEC schemes have merged, so it’s important to check the latest HMRC guidance to maximise your claim.
  
  

• Maximise Pension Contributions

  Employer pension contributions are fully deductible for corporation tax purposes. The annual allowance is £60,000, with the option to carry forward unused allowances from the previous three years. Making pension contributions before year-end can significantly reduce your corporation tax bill.
  
  

• Review Profit Extraction Methods

  Owner-managed businesses should review the balance between salary, dividends, and other remuneration to optimise both business and personal tax positions. With changes to National Insurance and dividend tax rates, regular reviews ensure you’re extracting profits in the most tax-efficient way.
  
  

• Take Advantage of Green Tax Incentives

  Investing in energy-efficient equipment or sustainable business practices can qualify your business for valuable green tax credits, supporting both your bottom line and environmental goals.

  
  

• Plan for Changes to Employment Taxes

  From April 2025, Employers’ National Insurance contributions will rise from 13.8% to 15%. The threshold for liability also drops, but the employment allowance increases to £10,500. Reviewing your workforce structure, remuneration packages, and use of contractors can help manage these increased costs.
  
  

• Stay Ahead of Regulatory Changes

  HMRC is continually updating digital tax systems and compliance requirements. Proactive planning and regular reviews with your accountant ensure you remain compliant and avoid penalties.

How Reaveley Cooper Accountants Can Help

• Our experienced team provides tailored tax planning for businesses, including:

• Strategic reviews of your business structure and tax position

• Detailed forecasting and scenario planning to optimise tax outcomes

• Advice on capital allowances, R&D credits, and pension contributions

• Guidance on profit extraction, employment taxes, and compliance with the latest HMRC rules

Unlock Tax Efficiency and Growth

Tax planning is an ongoing process, not a once-a-year task. With expert support from Reaveley Cooper Accountants, your business can reduce tax liabilities, reinvest savings, and achieve sustainable growth.