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CORPORATION TAX
VALUE ADDED TAX
Basics
From 1 April 2015 there has been a single rate of corporation tax for all companies: 20%. Corporation tax self-assessment
requires companies to work out their own tax liability as part of their return and account for the ‘self-assessed’ liability to
corporation tax.
Planning
Taxable pro"ts are typically reduced by employers making pension contributions. Self-invested personal pensions (SIPPs) are
popular with many company owner-directors.
Another popular tax reduction strategy is to bring qualifying capital expenditure forward to take advantage of the 100%
annual investment allowance. This was £500,000, although reduced to £200,000 from 1 January 2016.
Basics
VAT is chargeable where taxable turnover is in excess of £82,000 in the previous 12 months or you expect this threshold will
be exceeded within the next 30 days.
There are schemes which simplify VAT accounting. These include the cash accounting scheme, annual accounting scheme
and the #at rate scheme.
Planning
• Would it be appropriate for you to use one of the special schemes?
• Are you claiming any VAT bad debt relief that you are entitled to?
• Are you accounting for VAT on the fuel used for private motoring using the appropriate scale charge?
• Make sure that you don’t reclaim VAT on cars (unless you are a car dealer or taxi company, for example, or provide
certain pool or leased cars for employees) or on entertaining UK customers.
BUSINESS TAXES, ALLOWANCES AND RELIEFS
The latest date for action in most cases is the business year-end
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