On The Spot Blogs

#Tax Myth 10 - R&D Tax Payments Should Always Be Claimed

With its tax reliefs improving over recent years, Research & Development claims should be given more attention.

For SMEs, when you spend £100 on R&D, your corporation tax is not only reduced by the £100 you've spent, but also by an additional £125, taking the total deduction against your company bill to £225.

If you're paying 20% corporation tax, you've saved additional tax of £25 (£125 @ 20%), taking total tax saved to £45 (£225 @ 20%).

 

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#Tax Myth 6 - Sole Trader Start Ups Don't Receive Tax Incentives

You have probably heard of lots of incentives for those who invest in start up companies. This is where individuals pay money to a company in exchange for shares in that company. The tax system helps subsidise the investor's risk in the new unproven business.

But what about your own sole trader business?

It might be small scale and, as there are no shares, it's probably just your money. Aren't you taking a risk? Where are the incentives for you? After all, you might have a good idea which in the future trades from a limited company.

 

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Tax Relief For Losses

Do I get any tax relief for my business loss?

 

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