Effective tax planning is essential for small businesses looking to maximize profits and minimize tax liabilities. Here are some key strategies to consider:
1. Keep Accurate Records
Maintaining detailed financial records throughout the year makes tax preparation much easier and helps identify potential deductions.
2. Understand Available Reliefs
There are numerous tax reliefs available to small businesses, including Annual Investment Allowance and Research & Development tax credits.
3. Plan Ahead
Strategic planning throughout the year, rather than just at year-end, can help you make informed decisions that reduce your tax burden.