10/01/2020
"How can I reduce my corporation tax bill?"
"How can I pay no tax?"
"My mate Bill earned the same as me, and his tax bill was much less."
"The bloke down the pub said if I buy a van, I won't have to pay any tax."
If you're an accountant you will no doubt have heard all of these, and on a regular basis I would guess! 🤦♀️
If you are in business, whether as a sole trader, partnership or limited company, you pay tax based on taxable profit.
So, to reduce your tax bill, you need to reduce your profit.
Profit, in it's simplest form (very little about tax is simple), is income less expenses.
So, to reduce your profit, you need to reduce income or increase expenses.
Most of us don't want to reduce our income, so the key to ensuring you are tax efficient is to be clear on what expenses you can claim and make sure you are recording them.
Last Date of filing income tax returns is 31st Jan-2020
