Business Tax Advisory Services for Yorkshire Companies

Proactive Business Tax Planning and Compliance

Corporation tax is one of the most significant costs a limited company faces. Filing the return correctly and on time is the baseline — it is not, on its own, a strategy. The real value of business tax advice lies in what happens before the return is prepared: structuring the business correctly, planning remuneration efficiently, claiming every available relief, and timing decisions in a way that reduces the overall tax burden.

WDS provides business tax advice and compliance services for established owner-managed businesses and limited companies across Yorkshire. Our tax team works alongside your Client Manager, who already understands your business — which means tax planning connects to your accounts, your structure and your plans, not to a template that could apply to any company.

We handle the full range of business tax matters, from preparing and filing corporation tax returns to advising on R&D claims, capital allowances, director remuneration planning, business structures and HMRC enquiries.

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Proactive Business Tax Planning and Compliance

Why Businesses Come to WDS for Business Tax

Most businesses come to us with a specific trigger rather than a general request for tax planning. Common situations include:

A company’s profits have grown significantly and the director is aware they are paying more tax but not sure what can be done about it
A director wants to understand the most tax-efficient way to extract money from their company — salary, dividends, pension contributions or a combination
A business is considering an acquisition, disposal or restructuring and needs to understand the tax implications before the transaction is agreed
A company has been told it may qualify for R&D tax relief but has never made a claim and is not sure whether its activities meet the criteria
A business has invested significantly in plant, machinery or property and wants to ensure all available capital allowances have been claimed
HMRC has opened an enquiry into the company’s tax return and the director needs professional representation
A business is approaching a change of ownership — whether a sale, an MBO or passing to the next generation — and wants to understand the tax implications for the company and for the shareholders
A sole trader or partnership is considering incorporation and wants to understand the tax case for and against

If any of these apply, the right starting point is a conversation with our tax team.

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Why Businesses Come to WDS for Business Tax

Our Business Tax Services

Corporation Tax Planning

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 rate of corporation tax your company pays depends on its level of taxable profits and whether it has associated companies. There is a main rate for larger profits and a small profits rate for lower profits, with a marginal relief calculation applying in between — and there are legitimate planning strategies that affect where your profits fall. For current corporation tax rates visit gov.uk/corporation-tax-rates or speak to our tax team.

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.

Director Remuneration Planning

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 (R&D) Tax Relief

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.

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.

Capital Allowances

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 the current annual limit. The AIA covers most plant and machinery purchases including equipment, vehicles (excluding cars) and fixtures
Full Expensing — provides 100% first-year deduction for qualifying new plant and machinery for companies within the charge to corporation tax, with no monetary cap
Writing Down Allowances (WDA) — expenditure that does not qualify for AIA or full expensing is pooled and written down at rates set by HMRC. For current WDA rates visit gov.uk/capital-allowances or speak to our tax team
Structures and Buildings Allowance (SBA) — provides straight-line relief on the cost of constructing or purchasing new non-residential buildings and structures, at the rate set by HMRC

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. For current allowance rates and limits visit gov.uk/capital-allowances.

Tax-Efficient Business Structures

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
Pre-transaction restructuring — ahead of a business sale, acquisition or MBO, restructuring the business 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 Enquiries and Investigations

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.

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.

Business Tax and Corporate Finance — Working Together

Many of the most significant business tax decisions arise in the context of a transaction — a business sale, an acquisition, a management buyout or a restructuring. The tax implications of how a deal is structured can be as significant as the headline price, and they need to be addressed before heads of terms are agreed, not after.

Our tax team works alongside our corporate finance team on all transactions, ensuring the tax position is built into the deal structure from the outset. This includes advice on Business Asset Disposal Relief (BADR) for sellers, stamp duty and SDLT on acquisitions, the tax treatment of earn-outs and deferred consideration, and the structuring of management equity in MBOs.

See our corporate finance page for more detail

Business Tax and Corporate Finance — Working Together

Connected to your accounts

Our tax team works alongside your Client Manager, who already understands your business. Tax advice that is disconnected from your accounts and management information misses opportunities and can create inconsistencies

Proactive planning, not just compliance

We review your tax position throughout the year, not just at year-end. Planning opportunities — particularly around remuneration, pension contributions and capital expenditure — often need to be acted on before the year end, not after

Compliance Assurance

With our team handling your business tax affairs, you can have peace of mind knowing that your tax obligations are met accurately and efficiently, reducing the risk of penalties and fines.

Transaction tax

Our tax team works alongside our corporate finance team on transactions. The tax and the deal structure are considered together from the outset.

HMRC enquiry support

we represent clients in HMRC enquiries and handle all correspondence. You do not have to deal with HMRC directly.

Yorkshire based

we have six offices across Yorkshire. Your tax advice comes from people who understand the Yorkshire business environment and are accessible when you need them

What tax reliefs are available when selling my business?

Business Asset Disposal Relief (BADR) reduces the CGT rate on qualifying business disposals up to a lifetime limit for sellers who meet the qualifying conditions, broadly owning at least 5% of the company and being an officer or employee for at least two years. The qualifying conditions need to be met at the time of disposal and there are circumstances where BADR can be inadvertently lost. We check BADR eligibility as a standard part of pre-sale planning. For current BADR rates visit gov.uk/entrepreneurs-relief.

What happens if HMRC opens an enquiry into my company?

If you receive an HMRC enquiry notice, contact us immediately. We will review the notice, advise on the appropriate response and manage all correspondence with HMRC on your behalf. The most important thing is not to provide more information than HMRC is entitled to request, and not to respond in a way that widens the scope of the enquiry. We have experience representing clients through the full range of HMRC enquiries.

Should my business be a limited company or a sole trader?

The tax case for incorporation depends primarily on profit levels and how profits will be used. At higher profit levels, extracting income as dividends through a company is generally more tax-efficient than paying income tax and NIC as a sole trader. However, incorporation also brings additional compliance costs and obligations, and the tax savings need to outweigh these. We advise on the incorporation decision based on your specific circumstances and plans.

What capital allowances can my business claim?

Capital allowances allow businesses to deduct the cost of qualifying capital expenditure from taxable profits. The Annual Investment Allowance provides 100% first-year relief on qualifying plant and machinery expenditure up to a set annual limit. Full expensing provides 100% first-year relief on qualifying new plant and machinery for companies with no monetary cap. Writing-down allowances apply to expenditure that does not qualify for these reliefs. For current AIA limits and allowance rates visit gov.uk/capital-allowances or speak to our tax team.

Does my company qualify for R&D tax relief?

R&D tax relief is available to companies that carry out qualifying research and development, work that seeks an advance in science or technology by resolving genuine scientific or technological uncertainty. Software development, engineering problem-solving, new product development and process improvement can all qualify. The key tests are whether the work went beyond routine development and whether the outcome was genuinely uncertain at the outset. We assess eligibility on a case-by-case basis.

What is the most tax-efficient way to take money out of my company?

For most owner-managers, the starting point is a salary up to the National Insurance threshold, which preserves NIC credits without triggering significant employer or employee NIC, with additional income taken as dividends. However, the optimal position depends on your total income, the company’s corporation tax position, your pension position and what the money is for. Pension contributions are particularly powerful as they are deductible against corporation tax and build retirement savings simultaneously. We review remuneration structures annually.

What is the current rate of corporation tax?

The rate of corporation tax your company pays depends on its level of taxable profits and whether it has associated companies. There is a main rate for larger profits and a small profits rate for lower profits, with a marginal relief calculation applying in between. For current corporation tax rates and the profit thresholds visit gov.uk/corporation-tax-rates or speak to our tax team.

How Do I Determine the Most Tax-Efficient Business Structure for My Company?

Our advisors analyse your business structure, goals, and tax implications to recommend the most tax-efficient business structure for your company. We consider factors such as taxation, liability, and operational needs.