RSM Tenon Group PLC : RSM Tenon reveals top tax tips for businesses in 2012

As the New Year dawns, many business owners will be looking to see where they may be able to become more productive and maximise their potential income in 2012. But it's often the basics that are overlooked.

Here, Paul Belsman, Head of Tax for RSM Tenon reveals RSM Tenon's top tips for businesses to become more tax efficient:

• Make your transport greener: switching to 'green' company cars with low CO² emissions can result in a saving on tax. Many car manufacturers are now rising to the challenge of the increased demand for green cars and there are a variety of 'executive' and even 'prestige' cars which have low emissions.
  
• Buy machinery before April: businessescan claim Capital Allowances when purchasing qualifying items of plant and machinery. Subject to certain conditions, full tax relief can be obtained on purchases up to £100,000. But watch out because from April this year, the allowance is to be reduced to £25,000, so business owners need to consider the timing of any new purchases before this reduced rate applies in order to maximise tax relief.
  
• Get greener equipment: the Carbon Trust oversees a list of 'green' equipment for which businesses can claim Enhanced Capital Allowances. This includes  low CO² emissions machines, screens for refrigerated cabinets, solar collection systems to heat water, and more recently, washroom hand dryers. The advantage of buying this equipment is that, subject to limits on Capital Allowances, the cost qualifies for full tax deduction against profits.
  
• Get online: from April all businesses will have to submit their VAT returns online and pay their VAT liability electronically. Any businesses not yet filing their VAT returns will need to register for online filing as soon as possible. While we're on the subject, don't forget that from this year an automatic penalty of £100 will be automatically issued if a tax return is filed late, and this will apply regardless of whether there is tax to pay or the tax due has been paid on time.
  
• Consider salary exchange: this is becoming increasingly attractive for businesses struggling to give their staff a pay rise, and involves employees exchanging part of their salary in exchange for a benefit which can result in tax and NI savings. This arrangement is available for a wide range of benefits from pensions to cycle to work schemes.
  
• Maximise capital allowance claims: from April, new provisions will be introduced to restrict claiming Capital Allowances on the acquisition of second hand buildings. This means that property owners should consider whether they have claimed everything they can on property acquisitions prior to this date. Those considering purchasing a new property should seek advice regarding the timing of this.
  
• Check if you qualify for tax relief: Research & Development Tax Credit Relief is potentially available to businesses involved in technological or scientific advancements.  SMEs will get £2 tax relief for every £1 spent on qualifying R&D spend, meaning this is one of the most valuable tax reliefs available to businesses today.
  
• Take advantage of Entrepreneurs Relief: this is another valuable tax relief which could save entrepreneurs up to £1.8m of tax on the sale of a qualifying business or asset. Business owners should check with their advisors whether they can claim for any of the many reliefs that are available to them.
  
• Seed Enterprise Investment Scheme - diarise for April: with the relaxation of the conditions for companies to qualify for Enterprise Investment Scheme EIS status, coupled with the introduction of the Seed Enterprise Investment Scheme (SEIS) from April 2012, businesses should find it easier to raise finance in the future. Business owners would be wise to spend their time now reviewing their funding requirements and the qualifying criteria so that they're ready to act in April.  

Paul Belsman said: 'It's still tough out there and many businesses are still finding it hard to in the current economic climate. Ensuring that a business is tax efficient and it is claiming all the reliefs it is entitled to, is essential to survival. 

'Business owners could potentially be missing out on getting money back from HMRC, and I urge them to talk to their advisors about whether they qualify for the large number of tax reliefs and rebates that are currently on offer.'

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RSM Tenon Group PLC is an independent member of the RSM International network, the 6th largest network of independent accounting and consulting firms worldwide each of which practices in its own right. RSM International is represented by more than 32,500 people working in over 700 offices across more than 80 countries worldwide.