Tax Planning / 2 posts found
Should you choose a company van over a company car?
Having a vehicle to use for business purposes adds to the efficiency of your business. But should you opt for a company car or a company van? Company vans are taxed in a far more favourable way than passenger cars, in most cases. Both company tax relief and personal benefit-in-kind tax charges are more tax efficient for vans and, partly because of this, many business owners choose a van over a car. What personal tax do you pay on a van compared to a car? Personal tax for use of a company car is charged on an annual amount of [...]
Reduce your corporation tax bill by offsetting pension contributions
If you’re looking for ways to minimise your corporation tax bill, it’s worth considering if there are deductible expenses you can claim. One key area to think about is your director pension contributions, as these can be offset against your taxable profits. Pension contributions for directors of up to £40K per annum can be deducted from your taxable profits. With a tax saving of 19% of your pension contribution, this could potentially save you £7,600 per company director – a nice helping hand if you’re aiming to cut your tax costs. How do I offset my pension contributions? Being able [...]