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Running a small or medium-sized enterprise (SME) in the UK means juggling multiple responsibilities—from managing staff to tracking finances. However, one area often overlooked is understanding and claiming available tax reliefs. Below are five crucial reliefs that could substantially reduce your annual tax bill.
1. Small Business Rate Relief (SBRR)
If you operate from commercial premises with a rateable value below a certain threshold, SBRR can significantly reduce or even eliminate your business rates. Don’t assume you’re not eligible—always check with your local authority.
2. Annual Investment Allowance (AIA)
Purchasing business equipment or machinery? You can often deduct a significant portion of these costs from your profits before tax. This allowance helps you invest in growth without facing a hefty tax bill at the end of the year.
3. R&D Tax Credits
If your business engages in innovative projects—developing new products, processes, or services—you could claim back a portion of your research and development costs. This relief is especially advantageous for technology-focused SMEs but also applies to many other sectors.
4. Capital Allowances on Furnished Holiday Lets
Own a Furnished Holiday Let property? You might be able to claim capital allowances on various fixtures, fittings, and even integral features of the property. With changes looming in April 2025, it’s vital to maximise these claims while you still can.
5. Entrepreneur’s Relief (Now Business Asset Disposal Relief)
When you decide to sell or dispose of your business, this relief can significantly reduce the amount of Capital Gains Tax you pay on qualifying assets. Planning for this well in advance is key to maximising your savings.
Tax reliefs can be a game-changer for SMEs looking to optimise cash flow and reinvest in growth. If you’re unsure about which reliefs apply to you, or you need assistance with the claims process, Smart Business Tax can help you navigate the system and uncover hidden savings.
Need More Guidance?
Visit our website at www.smartbusinesstax.co.uk and contact us for tailored advice on any of the topics above. We’re here to help you keep more of what you earn.
