No one likes to pay more taxes than required. The tax system in the UK has numerous credits and deductions, and most of these often go unclaimed. If you are a sole trader, a limited company, or a small business looking for ways to minimise your taxes and ensure tax saving, then you need to read this blog. We will explain all you need to know. Moreover, at Tax Advisor UK, we offer our services to help you. You can also hire our tax accountant in UK to help you manage everything without hassles.
What is a Tax Break?
This means having a reduction in the total tax you (the taxpayer) needs to pay. A tax break is a term used to refer to people who receive preferential tax treatments in the UK. When the UK government provides a tax break to specific people or corporations, it reduces the due amount of taxes payable. That is, they modify the tax system to favour them.
Importance of Tax Breaks
Having a tax break reduces the taxable income of the taxpayer. Having an exemption, a tax deduction, or having a tax credit facilitates tax saving. Having tax breaks is a much-preferred way to enhance the economy. They raise the money that taxpayers need to spend, or the amount businesses need to invest for business growth. If you want to know more about exemptions, you can get in touch with our tax accountant in the UK. We are here to help.
Popular Tax Breaks You Need to Know
Please note that these are details based on the present information available. It aims to serve as a guide but does not offer any legal advice in any way. Things change at any time, so the following details are subject to modifications.
R&D Tax Credits
Although you may think your business may not qualify for a tax credit, it is worth it to contact R&D tax credit experts. They can offer good advice and you may qualify for R&D tax benefits. According to the broad definition of tax credit by the HMRC, you do not need to involve yourself in lab work to qualify for this benefit.
Annual Investment Allowance
If you want to claim 100% tax relief on your assets (e.g. machinery) in the first year, you must use the Annual Investment Allowance or AIA. In addition, you need to know which assets you need to own as a small business before leasing them. There are stringent criteria for the assets, and talking to our tax accountant in the UK is the first thing you need to do.
Capital Allowance
According to current government policies, you can benefit from a tax break if you use water-saving machinery, low-emission vehicles, and other energy-saving approaches.
Business Renovation Allowance
This proves beneficial for small businesses that require renovation. If the building you intend to use for business was empty for a year or more and was in use for a different purpose before, you may qualify for a 100% tax incentive on renovations you do.
Employment Allowance
For employers who are eligible for this allowance, it reduces the annual National Insurance liability by £4,000. You can claim this amount by the end of each tax year. For more queries, you can speak to our tax accountant in the UK. Call us today.
How TaxAdvisor UK can help
At TaxAdvisor UK , our experts will provide you 30 minutes free consultation and help you in managing all your tax and accounting work. Speak to our expert accountants, tax advisor on (0203) 5381276 or fill an online form today. We can have a consultation session over the phone, virtual or face to face meeting and will provide you no obligation fixed quote.
