Below is an overview of the tax relief schemes available that your business may be eligible for.
General tax reliefs
- Employment Allowance - You could get up to £3,000 a year off your National Insurance bill if you’re an employer.
- Tax relief for employees - You may be able to claim tax relief if you have to use your own money for travel or things that you must buy for your job.
- Business rates relief - Some properties are eligible for discounts from the local council on their business rates.
- VAT Cash Accounting Scheme - lets you pay VAT on your sales when your customers pay you, and reclaim VAT on your purchases when you have paid your supplier.
- Entrepreneurs' Relief - You may be able to pay less Capital Gains Tax when you sell all or part of your business.
- Incorporation Relief - You may be able to delay paying Capital Gains Tax if you transfer your business to a company in return for shares.
Industry tax reliefs
- Creative Industries tax relief - a group of 7 Corporation Tax (CT) reliefs that allow qualifying companies to claim a larger deduction, or in some circumstances claim a payable tax credit when calculating their taxable profits.
- Capital Allowances - You can claim capital allowances when you buy assets that you keep to use in your business, such as equipment, machinery, and business vehicles. You can deduct some or all of the value of the item from your profits before you pay tax
(click here to download the manual).
- Enhanced Capital Allowance (ECA) - The ECA scheme means that a business can invest in energy-saving plant or machinery that might otherwise be too expensive.
- Energy Technology List (ETL) - a government-managed list of energy-efficient plant and machinery. If you pay income or corporation tax, you’ll be able to claim 100% first year capital allowance on a product if it’s on the ETL at the time of purchase.
- Business Asset Rollover Relief - You may be able to delay paying Capital Gains Tax if you sell some business assets, and use all or part of the proceeds to buy new assets.
- R&D tax relief - a CT relief that may reduce your company’s tax bill. This tax relief can only be claimed if your company is liable for CT.
- R&D Advanced Assurance - if your company carries out R&D for itself or other companies and claims R&D tax relief (above), it could qualify for Advance Assurance. This means that for the first 3 accounting periods of claiming for R&D tax relief, HMRC will allow the claim without further enquiries.
- The Patent Box - enables companies to apply a lower rate of CT to profits earned after 1 April 2013 from its patented inventions.
- Social Investment Tax Relief (SITR) - helps social enterprises raise finance by offering tax relief to individual investors.