In this week's newsletter we cover:
- 🧭 Navigating the Tax Maze: The 26.5% Corporation Tax Trap
- 🧐 R&D Tax Credit Claims Under Scrutiny - August 2023 update
- 🧠 Links to think
- 🚀 Links to do
🧭 Navigating the Tax Maze: The 26.5% Corporation Tax Trap
In the ever-evolving landscape of corporation tax, there's a new pitfall that companies need to be aware of: the marginal rate of 26.5%.
This rate applies to companies whose profits fall between the lower and upper profits limits, set at £50,000 and £250,000 respectively.
At first glance, this might seem like a simple progressive tax structure. However, as ever with tax, the devil is in the details. Companies that find themselves in this band are effectively paying a higher rate of tax on a portion of their profits.
In this video, we briefly walk through how the 26.5% rate is reached.
This band creates a potential trap for businesses. If your profits are hovering near the lower limit, it might be worth considering strategies to keep them below that threshold. Conversely, if your profits are nearing the upper limit, you might want to explore ways to navigate around the 26.5% rate.
Remember, tax planning is not a one-size-fits-all approach. It's crucial to consider your company's unique circumstances and future plans. As always, we're here to help you navigate these complexities and ensure you're making the most tax-efficient decisions for your business.
🧐 R&D Tax Credit Claim Scrutiny - August 2023 update
Here we run through a recent news article on the state of R&D tax credits and try to sort the facts from the soundbites...(apologies for the poor audio).
🧠 Links to think
🚀 Links to do
- 📈 Get tracking set up on Xero to super-power your performance metrics
- 😇 Your very own personal assistant and agent
Photo by Luemen Rutkowski / Unsplash
