5 tax tips for your Ltd company that can reduce your tax liability, allowing you to keep more of what you've earned. By Keepers Accountancy's Matt Coghlan

1. 5 TOP TAX TIPS FOR
YOUR LTD COMPANY
2013/14
By Keepers Accountancy

2. #1 Pay Dividends to your Spouse/
Children
• Now odds are you’re
probably thinking “I
already give them too
much money”
• But in certain
circumstances profit
sharing between you
and your family can
be very tax efficient.

3. • You need to utilise each
family member’s personal
allowance. This is done
through your LTD Company
in way of dividends on
shares your family own.
• Also if you have children
who are 13 or over, odds
are they’re earning less
than £8,105. And they if
help out in your business
you can pay them a wage to
reduce your taxable profits.
#1 Pay Dividends to your Spouse/
Children

4. #2 Research and Development Tax
Relief
• "In this world nothing can be
said to be certain, except death
and taxes.“
• Perhaps Benjamin Franklin
would have taken a more
optimistic view, had someone
made him aware of the tax
reliefs available for businesses,
such as ‘Research and
Development Tax Relief’ or
‘R&D’.

5. #2 Research and Development Tax
Relief
• R&D is a tax insensitive by the
HMRC to encourage innovation
amongst Technical firms in the
UK, in an attempt to raise the UK’s
presence on an international
scale.
• As of 2012 you can receive a
whopping 225% tax relief if you
pass HMRC’s guidelines.
• R&D is explained in much more
detail in a blog post on our
website. To read the blog post
click here

6. #3 Annual Investments Allowance
(AIA)
• The AIA is a capital
allowance which allows
a full write off of capital
expenditure for plant
and machinery in the
year of purchases.

7. #3 Annual Investments Allowance
(AIA)
• In April 2012 the allowance decreased
from £100,000 to £25,000.
• However in January of 2013 legislation
introduced a temporary increase for 2
years of £250,000 to stimulate growth
in the economy by providing an
additional time-limited incentive for
businesses to invest in plant or
machinery.
• So it is possible to reduce your profits
subject to Corporation tax by using
the AIA to its full potential, although
this would need to be done through
constant reviewing and planning of
your expenditure.

8. #4 Company Cars
• If you use a
company car
system at your
business, have you
considered
whether they’d be
better off
personally owned?

9. #4 Company Cars
• When using a company car
personally, you need to remember
that you have to pay national
insurance on the benefit in kind, and
depending on whether the fuel is
included or not; it may turn out to be
quite costly.
• Owning the car personally will not
draw the benefit in kind and you may
claim the mileage at the approved
rate of 45p/25p per mile. Depending
on whether you’ve got a smart car or
a Bugatti it may start to build up.
Although deciding which option is
best for you is dependent on your
circumstances and the vehicle
involved.

10. #5 Download Keepers’ 57 Tax Tips
• This Free eBook has 57 tips
to reduce your tax
liability, ranging from your
employees, to your
investments, to your
business in general.
• To Download your free
copy and see how it can
save you money click here