As a small business you are entitled to a range of tax deductions and exemptions. Many businesses never claim their full entitlements because they cannot find their way around the complex web of regulations and rules which govern this area.
There are numerous tax deductions, many of which are industry specific, so it is a good idea to contact your local tax office and trade body for guidance. Here are some basic areas you might like to consider:
Most investments you make in your company are tax deductible – spending on plant, transport, IT, etc
You can get tax credits for research and development programmes
There are various export incentive programmes which also offer tax (VAT) deductions
Interest payments on loans can be tax deductible
In addition there are a whole range of local authority incentives such as relocation grants and “holidays” from rates payments. Within the EU there are also a number of different grants offered to companies who agree to set up operations in deprived areas.
The central point to remember however is that with most tax deductions and incentive schemes it is necessary that you start actually earning profits and paying tax before these come into operation. It is surprising how often well-established businesses tend to not apply for these savings – assuming that they are not eligible, when in fact many are.
If you want to get the maximum you are entitled to, seek advice from a professional with experience in your business area. Your solicitor may be able to help or suggest an accountant or tax lawyer who will be more aware of the solutions available.