Business Tax Planning

By understanding your business we can be proactive with strategic recommendations and advice

Tax is much more than a compliance obligation. We will work with you to provide practical solutions that will help you maximise your businesses profits by minimising your tax liabilities.

Tax can be complex. Our highly trained tax specialists work with you to develop the right strategies for your business.

As a business owner, no matter the size or structure of your company, we understand that your goal is to retain as much of your profit as you can whilst paying the least amount of tax. We can advise you on the best structure of your business to achieve your goal. 

Different because you are

We pride ourselves in providing individually tailored services to our clients. Whatever your aspirations and priorities in business and life, we will be by your side with expert advice from local specialists. It is because your needs are unique, that the solutions we provide are distinct and personalised to you.

Sole Traders and Partnerships

As a first time sole trader we can help you:

  • Understand the best company structure to suit your aims and objectives
  • Assess your turnover, with a view to VAT registration
  • Deal with your payroll for any employees
  • Plan around your tax liabilities, including the loss of your personal allowance
  • Prepare budgets and forecasts to help secure funding

As your business grows we can also:

  • Provide advice on whether you could make tax savings by trading as a company
  • Provide tax 'health checks' on a regular basis to ensure no tax is being paid unnecessarily

In a partnership you may face many of the same tax issues as a sole trader. Additionally, we can help you withe the following tax planning expertise:

  • Look at tax benefits of bringing a partner on board
  • Understand the different structures available to you and their tax implications
  • Make changes to your partnership in a tax efficient way
  • Support during partnership disputes

Corporation and Business tax

We will deal with company tax returns on your behalf, ensuring they are submitted correctly and on time. We will advise you on which tax is due and when, planning at all times to make your business as tax efficient as possible.

We'll advise you on all aspects of your companies finance, including:

  • Choosing the correct business structure for your company, detailing the benefits of each option to you before you come to a decision
  • How best to extract funds from your business, helping you establish a system that works for you and your company
  • Understanding the most tax efficient ways to buy and sell businesses
  • Restructuring and reorganising your business as it becomes necessary

Research and Development tax incentives

You may be able to benefit from tax incentives put in place by the government to encourage research and development in UK businesses. We can help you identify any areas that may qualify for these incentives and how to get them. 

International tax for business

Whether you are looking to open a branch or subsidiary overseas or you are starting up in the UK for the first time, our team of experts can guide you through the process and support you throughout.

For companies and businesses our tax and VAT consultants have a wealth of experience advising SME's to large corporate groups. Quite often the solution is not simple so having an adviser who can navigate the challenges and deliver the best solution can be invaluable.

Lovewell Blake are a member of HLB International, the 12th largest accountancy network in the world with 795 offices in 158 countries. Wherever you are doing business, we will have the in-house expertise and global network to help.

Contact us to speak to one of our international specialists.


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FAQs

Why might I need Tax Investigation Cover?

Lovewell Blake Tax Investigation Cover will pay our professional fees for dealing with an HMRC investigation or enquiry.Our cover is market leading and there is no excess to pay. In the event of a tax investigation or enquiry we can handle everything including all correspondence with HMRC and even host meetings with the Inspector on your behalf.

Even if you have done nothing wrong it can take time to prove this to HMRC and deal with their letters and enquiries. Many of our clients value the peace of mind TIC provides. See our dedicated Tax Investigation Cover page for more information and to subscribe online.

Can Lovewell Blake handle the international aspects of my affairs?

Lovewell Blake is a member of HLB International. HLB International is a global network of independent advisory and accounting firms, comprising member firms in 158 countries. HLB International member firms offer audit, accounting, tax and business advisory services. HLB International is a leading mid-tier accounting network. Through our HLB sister firms, we have access to vast expertese all over the world and regularly work with these firms to provide a joined up, international strategy to many of our clients.

Should I pay myself a salary or dividends?

If you operate a limited company, are a shareholder and have profit reserves, you could pay a dividend to shareholders. If you are doing this for tax planning purposes be careful of how all shareholders are treated, especially if they are family members and not actually working in the business.

Anyone receiving dividends can utilise the dividend allowance which means the first £2,000 received is taxed at 0%. Over £2,000 the basic rate tax charge on dividends is currently 7.5% with higher and additional rates for higher earners. Salaries incur PAYE and Employees National Insurance contributions. Employers also pay Employers National Insurance contributions. Whilst companies will receive corporation tax relief on these costs (which would not be the case for dividends) the comparative cost can often be higher than the dividend route.

Whether or not it will be beneficial for you to pay higher dividends and lower salaries will be a matter for review. There is no simple rule which will apply to all and with higher taxes on dividends the decision is much more negligible than it has been in the past. Much will depend on your other income, role in the business and corporate structure of your company.

Taking a step back though, if you are starting in business you may want to review your choice of business structure first. Consider the cost of operating a limited company and the benefits of limited liability. See how these balance with potential tax advantages and make an informed decision. We can help with these discussions, allowing you to enter business with your eyes open.

Book a meeting with one of our specialists to discuss how best to structure your business and remuneration strategy.

What does my tax code mean?

Every taxpayer in the UK has a Personal Allowance. This is the amount of income you can earn each year before you pay any income tax. For the 2020/21 tax year this is £12,500. For some taxpayers this personal allowance is adjusted by HMRC to reflect things such as benefits in kind (e.g. the value of a company car provided to you), tax overpaid or underpaid, additional allowances or to collect higher rate tax on other income. This adjusted personal allowance is know as your tax code. HMRC will send you a notice of your tax code so you or your accountant can check it and contact HMRC to make adjustments. If you need help with your tax code of broader tax affairs, get in touch to speak to one of our team.

Wide-ranging tax planning and compliance services for individuals seeking advice and guidance from our team of experienced and highly qualified professionals.

Friendly and coherent advice and guidance on accounting and tax matters for small business owners including those starting out for the first time.

Established businesses requiring accounting and tax compliance services, forward thinking tax planning advice and the support to help your business succeed.

Our full range of enhanced corporate services aimed at large companies and those requiring audit, assurance, corporate tax advisory and diverse tax planning services.

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