Business Tax Planning

Small Business Taxes - Planning and Strategies for new businesses - We concentrate on THREE Key elements:

  • Selecting the right Legal Structure for your Business - Limited Company or Self Employed
  • Maximising the use of tax breaks - Capital Allowances and other Tax Allowable Reliefs
  • Planning Early - Timing can be crucial if you want to benefit from the various strategies available to reduce your tax burden. 

The key to effective tax management is to develop a plan based on your individual circumstances. It can seem like a minefield of legislation, but Heron Accounting Services will be able to guide you through. We offer a range of services that can make a significant difference to your personal wealth and business growth.


Please contact Heron Accounting Services on 0844 736 6111

or email  for a free initial appraisal.


The Legal Structure

There are two main options open you – either to set up a Limited Liability Company and become a director and employee of that, or to be a Self-Employed Sole Trader or Partnership.

Financially, the biggest difference between the two is how you are assessed for tax by Her Majesty’s Revenue & Customs.

Sole Traders are self-employed and must complete a self assessment tax return every year. Unlike being an employee, you won’t be taxed on your income. Instead you will be allowed to deduct business expenses and be taxed on the profit you have made.

Limited Companies are separate legal entities, and are assessed on their turnover and profit with a company tax return.

If you choose to form a limited company then you will have to assess your business each year for Corporation Tax.

This is a tax on your company’s profits. You have to work out your own tax liability, pay that tax, and ensure you deliver all required information to Her Majesty’s Revenue & Customs (HMRC) on time.

As with many tax affairs, if you get it wrong or send required information late, you will be penalised – sometimes with a fine.  


Capital Allowances

If you buy an asset such as a car, machinery or other equipment for use in your business, you will not be able to deduct this expenditure from your trading profits. Instead you may be able to claim a deduction called a Capital Allowance from your business profits.

The aim is to give tax relief for the reduction in value of the qualifying business assets you buy and own for business use by allowing you to expend their cost against the taxable income from your business.

The relief available from Capital Allowances are set for each Tax Year and can often change considerably from year to year. For that reason the timing of your assets purchases is an important consideration.

Capital Allowances are available to sole traders, self-employed professionals and partnerships, as well as Limited Companies liable to Corporation Tax.

As well as Capital Allowances there are many other important Tax Reliefs available to the small business. These can include 'use of home as office', business mileage allowances, bad debt relief, use of own car in business and many others.  We at Heron Accounting Services are able to advise of the appropriate reliefs available for your business.


The simple key to effective BUSINESS TAX PLANNING is to consider the available options at an EARLY stage. You can then formulate the tax advantages and disadvantages in order to incorporate these within your Business Plan.


Please contact Heron Accounting Services on 0844 73 66 11 

or email for a free initial appraisal.