Managing cash flow in a small business is often tricky, particularly when a big tax bill is due. It is therefore a good idea to consider all possible reductions and to use whatever you are entitled to.
Capital Allowances on Business Premises
If you own your business premises, check what capital allowances you can claim. Even if you purchased the property years ago, there may still be tax relief available. If you are unsure what you can claim, it is worth consulting an accountant. Use an internet search for your area to find accountants who can help. For example, searching for ‘business accountants Oxford’ brings you results like www.hazlewoods.co.uk/expertise/business-accountants/oxford/.
Maximise Pension Schemes
Maximising employer pension contributions will provide savings both for you and your employees. It is also a good way to reward your staff, helping in recruitment and retention.
Give Shares to a Spouse
Giving shares in your business to a spouse will not only mean they can use their dividend allowance, it can also use any of their unused income tax basic rate band.
Pay Your Children
Your children can earn up to a certain amount tax-free. The current rate for this is £12,570 a year in 2025/26. This means that you can pay your children this amount, helping them save for their future, tax-free.
Tax-Free Benefits in Kind
There are a number of tax-free benefits in kind that will both help your staff and reduce your tax bill. From workplace nurseries to staff parties, check that you are making use of these.
