Reducing Corporation Tax

A

apple

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Hi Ya

A mate has a meeting with his accountants tomorrow and wants to know is there anyway he can reduced his profits to reduce his corporation tax bill. He doesnt mind paying corp tax but wants to make sure he is not paying to much.

He is claiming all his expenses & subsistance, he has no interest in starting a pension yet, is there any other way that he can reduce it. He is hoping the accountant can help him, but any help here would be great.

cheers guys
 
Yep, pay yourself a bonus of the profit minus tax (then pay the tax). Profit = 0, no corporation tax!
 
Bonus is the obvious route but if friend wishes to leave the money in and not pay tax then the only way is to value is stock / work in progress differently to reduce his profit. Also look closely at money outstanding and add a bad debt provision. Note that this is flying a little close to the etc. and will only postpone the tax bill until the next return. may be a good move if he expects to be badly hit by the downturn.
 
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