Business Tax Advisory Services for Yorkshire Companies

We prepare and file corporation tax returns (CT600) for limited companies of all sizes, ensuring accurate reporting and timely submission to HMRC. But compliance is the minimum — the more valuable work is the planning that happens alongside it. The main rate of corporation tax is currently 25% for companies with profits over £250,000. Companies with profits below £50,000 pay at the small profits rate of 19%. Between these thresholds, marginal relief applies. The difference between paying at 19% and 25% on profits in the marginal relief range can be significant — and there are legitimate strategies that affect where your profits fall. We advise on timing of expenditure, pension contributions, use of group relief where relevant, and other planning measures that reduce the corporation tax liability within the rules. Where quarterly instalment payments apply to larger companies, we manage the payment schedule to avoid unnecessary interest charges.

For owner-managers and director-shareholders, how you take money out of your company is one of the most significant tax decisions you make each year. The combination of salary, dividends, pension contributions and benefits in kind that is most tax-efficient depends on your personal tax position, the company’s profits, National Insurance thresholds and your longer-term financial plans. The most common approach — a low salary to the NIC threshold plus dividends for the remainder — is often but not always optimal. The right answer depends on whether you have other income, the rate of corporation tax the company pays, your pension position, and what the money is for. We review remuneration structures annually as part of our wider tax planning work and advise on the most efficient approach for your circumstances. This is an area where the tax and the financial planning connect directly — pension contributions in particular affect both the corporation tax position and the personal retirement planning position, and the two should be considered together.

Research and Development tax relief allows companies to claim enhanced deductions on qualifying expenditure incurred on research and development activities. From April 2024, the previous SME and RDEC schemes were merged into a single scheme — the Enhanced R&D Intensive Support (ERIS) scheme applies to loss-making R&D intensive SMEs, while most other companies claim under the merged scheme. Qualifying activities are broader than many businesses realise. The key tests are whether the work seeks an advance in science or technology, and whether it involves resolving genuine scientific or technological uncertainty — not whether the outcome was eventually achieved. Qualifying activities commonly include software development, engineering design, new product development, process improvement and formulation work, as well as more obvious research activities. We assess eligibility, identify qualifying costs (including staffing costs, subcontractor costs, consumables and software), prepare the technical narrative and financial calculation, and file the claim. Claims are subject to increased HMRC scrutiny since 2023 — a well-prepared, properly documented claim is far less likely to attract an enquiry than one that is vague or overstated. We do not include costs that we are not confident will withstand scrutiny.

Capital allowances allow businesses to deduct the cost of qualifying capital expenditure from their taxable profits, reducing the corporation tax due. The main types of capital allowance are: • Annual Investment Allowance (AIA) — provides 100% first-year relief on qualifying plant and machinery expenditure up to £1 million per year. The AIA covers most plant and machinery purchases including equipment, vehicles (excluding cars), and fixtures • Full Expensing — introduced in April 2023 and made permanent from April 2026, full expensing provides a 100% first-year deduction for qualifying new plant and machinery for companies within the charge to corporation tax • Writing Down Allowances (WDA) — expenditure that does not qualify for AIA or full expensing is pooled and written down at 18% per year (main rate pool) or 6% per year (special rate pool, covering integral features and long-life assets) • Structures and Buildings Allowance (SBA) — provides 3% per year straight-line relief on the cost of constructing or purchasing new non-residential buildings and structures We review capital expenditure as part of your year-end tax work and ensure all available allowances are claimed correctly. For businesses with significant property expenditure, a capital allowances review can identify claims that have been missed in previous years — particularly on integral features such as heating, electrical and water systems.

The structure of your business affects how it is taxed, how profits are distributed, what reliefs are available, and how the business can eventually be sold or transferred. Common structural matters we advise on include: • Incorporation — the decision to move from sole trader or partnership to limited company has significant tax implications in both directions. We advise on whether incorporation makes sense given your profit levels, personal tax position and long-term plans • Group structures — where a business has multiple activities or multiple owners, a group structure may provide tax efficiency, liability protection and planning flexibility. We advise on setting up and reorganising group structures in a tax-efficient way • Pre-transaction restructuring — ahead of a business sale, acquisition or MBO, restructuring the business — for example, by separating property from trading activities or creating a holding company structure — can significantly affect the tax outcome. This work needs to happen well in advance of the transaction • Family company planning — for family businesses, the allocation of shares, dividends and income between family members can be structured in a tax-efficient way, subject to the settlements legislation and income-shifting rules

HMRC can open an enquiry into any tax return within the relevant time limit — typically twelve months from the filing date for a return filed on time. If HMRC opens an enquiry into your company’s tax affairs, we represent you throughout the process. This includes reviewing the enquiry notice and any information requests, advising on what information to provide and how, managing correspondence with HMRC, attending any meetings, and negotiating any settlement. Responding to HMRC without professional support significantly increases the risk of a poor outcome — HMRC’s enquiry teams are experienced and the process needs to be managed carefully. We also advise on voluntary disclosures where a company has identified an error in a previous return and wants to correct its position before HMRC identifies it.