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May 4, 2016
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How to pay less Corporate Taxes in England?

HOW TO PAY LESS CORPORATE TAXES IN ENGLAND?

     –       “Capital Allowance”

If you buy a property in the context of your business, you can deduct depreciation. However, you may deduct what is called the “Capital Allowance”

The equipment you own and use for your business

Tools, machinery, office equipment, computers, machine parts and factory equipment can claim the deductions in this category.

The purchase of this equipment is entitled to a tax deduction of 100% in the first year.

You can claim up to £ 200,000 is to say that if for example you decide to renew the IT infrastructure of your company and the purchase of equipment costing £ 200,000, the total investment will be an expense deductible in the first year.

–          Include family members in Payroll

It is possible to employ a family member who has no income and pay a wage below which there is no tax to pay legally. The person will be able to perform administrative work on behalf of the company.

–          Combine the wages and dividends

The most effective combination for corporate managers is to get an annual salary of £ 11,000 and the rest in dividends.

–          Deduct the expenses that take place before the establishment of the company

You can deduct certain expenses that occurred before your company is incorporated. These expenses can go up to 7 years back under condition of having kept the invoices or receipts.

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