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Where Taxpayers and Advisers Meet

Mitigate Corp tax on windfall

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?)

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

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