Effective Tax Planning to help you through COVID-19

Many businesses will be facing significant tax bills in a period where profits and cash flow have been hugely impacted by the current crisis. At a time where the term “cash is king” has never been more relevant, it’s important to consider how effective tax planning can play a role in supporting cash flow management, investigating the opportunities there are to minimise your tax liabilities and/or even access cash tax refunds.

As well as being able to advise upon Government support allowing deferments of tax payments (VAT/July payment on account), together with the “Time to Pay” arrangements, our Tax Team are also on hand to help you access opportunities to reduce your tax bills and perhaps get some cash tax back.

Key tax priorities to consider:

• Accelerating access to losses being incurred as a result of the current crisis. This can be used to reduce tax liabilities coming due or could even be carried back a year to generate a cash tax refund.
• Maximising the allowances you can claim to reduce your tax liabilities.
• Research & Development tax credits, perhaps you have not considered this before, but there has never been a better time for us to consider if you are doing innovative work, especially as this can again generate cash tax refunds.
• Now is also an important time to look to mitigate or even eradicate VAT leakage from your business and our VAT team can review this with you.

Alongside these immediate priorities, it’s important not to ignore long-term strategy either and our team is available to advise on continuing strategic planning around remuneration, succession planning and restructuring your business to ensure that you are in the best position possible to come out of this crisis.