3 Tax Efficient Investments All Businesses Should Consider
Keywords – Tax Efficient Investments – Seed Investment Scheme – Employment Allowance
Investments can serve more than one purpose. Not only can you enhance your potential, you can save on your taxes too.
In light of this, we have listed three of our favourite investments that enable you to do precisely that. Continue reading to find out more.
1. The Seed Investment Scheme
The Seed Investment Scheme has been designed by the HMRC to help small, early stage businesses to acquire capital.
Put simply; this is where businesses can invest in start-ups who need extra capital. Through participating in the Seed Investment Scheme, companies enjoy generous tax breaks — and you do your bit for helping fellow entrepreneurs.
So, it really is a win-win situation!
2. Renovate Your Business Premises
The importance of well maintained physical assets is well understood from an internal and external perspective.
Therefore, businesses of all sizes should take advantage of the ‘Business Renovation Allowance.’ In some cases, you may even be able to claim as much as 100% of the value of your renovations against your tax bill.
To qualify for this incentive, the potential building needs to have been vacant for at least a year. It should also have been previously utilized in a different capacity to that of your company. As such, if you are considering transforming an abandoned warehouse, garage, or retail shop to use as your next business premises — this tax incentive is well worth considering.
3. Employment Allowance
Employment Allowance is an annual offset.
If you are an employer and have more than one employee, we thoroughly recommend you claim ‘Employment Allowance.’ This works wonders for reducing the number of national insurance contributions you pay year on year. In some instances, you can enjoy a tax break up to the value of £3,000.
To access ‘Employment Allowance’, you need to ‘claim’ this allowance each month via your payroll. As such, you do not have to pay any national insurance contributions until your company reaches its £3,000 quota.
And, if you need help with setting up any of these investments, get in touch with us today.