This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Mitigate Corp tax on windfall

lander
Posts: 6
Joined: Wed Mar 22, 2017 1:17 pm

Mitigate Corp tax on windfall

Postby lander » Fri May 31, 2019 10:53 am

We are a SME consultancy. We have recently received a large bonus for successful advice given to a client. Is there any way of mitigating the large one off increase to our profits& corp tax for the year beside pension contributions?

We have already taken up the £40K annual pension contribution. (However, we did not use last years allowance. Can we carry forward any £40Ks from prior years?)

AnthonyR
Posts: 273
Joined: Wed Feb 08, 2017 2:33 pm

Re: Mitigate Corp tax on windfall

Postby AnthonyR » Fri May 31, 2019 1:27 pm

Unfortunately there's no magic pill that makes your tax go away. You had a good year and made a profit, be glad your company will only pay 19%/17% corporation tax.

Other than pension contributions, assuming your business doesn't require any investment in equipment you could buy a Tesla or two for 100% first year allowances (other ultra low emission vehicles are available) and effectively pay no tax on those profits.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


Return to “Company Taxation”

cron