TAX
Corporation Tax-Efficiency Planning
Maximise Your Savings With Grieve & Lombard’s Corporation Tax-Efficiency Planning
At Grieve & Lombard, we help start-ups and Small to Medium-sized Enterprises (SMEs) significantly reduce corporation tax, improve net cash flow, and achieve a sustainable competitive advantage through tax relief treatments. We maximise its effectiveness by integrating tax planning into our strategic management services. If your organisation seeks to remain relevant or pursue growth opportunities requiring investment, we can apply tax relief to capital and operational expenditure.
Capital Expenditure (CAPEX):
We can apply capital allowance tax relief on qualifying capital assets such as plant and equipment, covering up to 100% of the cost and reducing your corporation’s tax liability.
Operational Expenditure (OPEX):
Qualifying expenses are 100% tax-deductible. Additionally, the UK government incentivises Research and Development (R&D) with tax relief of up to 86% on qualifying R&D costs, in addition to the standard 100% deduction. This means that R&D tax relief (R&D tax credit for SMEs) can be up to 186%
We conduct feasibility tests on potential investment decisions to assist your organisation in making informed decisions at the planning stage. Our investment appraisal includes corporation tax relief treatments to establish the net cost of the investment, the benefit vs cost, and the projected net cash flow.
Capital Allowance (CA):
Capital allowances are a form of tax relief for businesses in the UK, allowing you to deduct some or all of the value of an item from your profits before paying tax. You can claim capital allowances on equipment, machinery, and business vehicles, known as ‘plant and machinery’. Claiming a capital allowance reduces your business’s annual taxable income, reducing the tax you must pay. This is a significant benefit for SMEs, as it can help you save money and reinvest it into your business.
Several types of capital allowances can be applied, such as:
Annual Investment Allowance (AIA):
You can claim 100% up to £1 million on specific plant and machinery.
100% First-Year Allowances:
You can claim the total amount for a specific plant and machinery in the first year it was bought.
Writing Down Allowances (WDA):
If your plant and machinery do not qualify for AIA or you’ve already claimed the maximum amount, you can claim these under WDA at a lower percentage rate.
Structure and Buildings Allowance (SBA):
The SBA lets you claim the cost of building, buying, or leasing a commercial property. A claim can be made on certain fixed assets embedded within the property, such as heating systems, electrical installations, air conditioning, lifts, and other integral components of the building.
R&D Tax Credit for SMEs:
Investing in Research and Development (R&D) can provide Small to Medium-sized Enterprises (SMEs) with a competitive edge in their industry. Innovation often leads to developing new or improved products, services, and internal processes, which can attract and retain customers, improve market positioning, and differentiate your company from competitors.
Innovation:
R&D can lead to developing new and innovative products, services, and internal processes, helping businesses differentiate themselves from their competitors and create a unique selling point.
Competitive Advantage:
Investing in R&D activities can provide a significant competitive advantage by developing innovative capabilities that differentiate your business from competitors.
Customer Satisfaction:
By investing in R&D, businesses can develop new products, services, and internal processes that better meet the needs and preferences of their customers, increasing customer satisfaction and driving repeat business and growth.
Corporation Tax Deduction:
SMEs can claim an additional deduction of up to 86% over and above the usual 100%, achieving a claim deduction of up to 186%.
Improved Cash Flow:
R&D tax credits offer a significant financial incentive for businesses. The credit can reduce the business’s tax liability or even result in a cash payment from HM Revenue & Customs (HMRC). The improved cash flow generated from the tax credit can be critical to the sustainability of ongoing R&D activities and can be reinvested into further innovation, expansion, or other investment activities.
Investment Decisions:
The investment decisions aim to achieve the entity’s strategic goals and objectives. Considering the tax relief, the net cash flow effect of investment improves the investment decision’s attractiveness.
Risk Mitigation:
The R&D process identifies potential risks and opportunities for the business’s primary objective to remain relevant and achieve its goals and objectives successfully.
How we can help
- Corporation Tax Advisory
- Corporation Tax-Efficiency Planning
- Corporation Tax Returns – Capital Allowance Advisory and Tax relief
- R&D Advisory and Tax Credit
- Tax Investigations and Enquiries
- Risk and compliance management
- Growth Investment Strategies
Discover how we can assist you in reaching your objectives by exploring the links below. Alternatively, contact us directly to learn how our tailored services can provide unique solutions for you and your business today.
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