HM Revenue and Customs (HMRC) recently reported a record-breaking increase in Corporation Tax receipts for the 2022\/23 tax year.<\/p>\n
<\/p>\n
The total amount collected rose by \u00a317.3 billion, reaching an unprecedented \u00a384.7 billion.<\/p>\n
While this is good news for the Government’s coffers, it may raise business owners’ concerns about their tax liabilities.<\/p>\n
However, various tax reliefs and VAT reclaims available to businesses can help mitigate these costs.<\/p>\n
Tax reliefs available to businesses<\/strong><\/p>\n Research and Development (R&D) tax credits<\/strong><\/p>\n Businesses investing in innovation can claim R&D tax credits. These credits can either reduce your Corporation Tax bill or provide a cash sum for some small or medium-sized enterprises (SMEs).<\/p>\n Capital allowances<\/strong><\/p>\n Capital allowances enable businesses to deduct the cost of certain capital assets from their taxable profits. These can include machinery, business vehicles, and even fixtures in buildings.<\/p>\n Enterprise Investment Scheme (EIS)<\/strong><\/p>\n The EIS encourages investment in small, high-risk companies by offering tax reliefs to investors. While this is aimed at investors, it benefits businesses by making them more attractive investment options.<\/p>\n Seed Enterprise Investment Scheme (SEIS)<\/strong><\/p>\n Similar to EIS but aimed at very early-stage companies, SEIS offers both Income Tax and Capital Gains Tax (CGT) reliefs to investors, thereby encouraging investment in start-ups.<\/p>\n VAT reclaims<\/strong><\/p>\n Input VAT<\/strong><\/p>\n Businesses can reclaim VAT paid on goods and services purchased for business use. However, there are certain conditions and exceptions, such as for entertainment expenses.<\/p>\n VAT refunds for business visitors from outside the UK<\/strong><\/p>\n If you are a business visitor from outside the UK, you may be eligible for a VAT refund on goods and services purchased during your stay.<\/p>\n Flat Rate Scheme<\/strong><\/p>\n Smaller businesses may benefit from the Flat Rate Scheme, simplifying the VAT process and potentially saving money.<\/p>\n While the record amount of Corporation Tax paid may seem daunting, various tax reliefs and VAT reclaims are available to business owners to alleviate some of this financial burden.<\/p>\n By taking advantage of these schemes, businesses can not only reduce their tax liability but also encourage investment and growth.<\/p>\n If you would like more advice about the tax reliefs your business can claim, please contact us. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" HM Revenue and Customs (HMRC) recently reported a record-breaking increase in Corporation Tax receipts for the 2022\/23 tax year.<\/p>\n","protected":false},"author":2,"featured_media":5369,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,24,125,30,31,28,120,121,25,4,26,7,27,128],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5366"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5366"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5366\/revisions"}],"predecessor-version":[{"id":5367,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5366\/revisions\/5367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5369"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}