Planning for Business Tax as an Owner-Managed Business


It’s really hard as an owner managed business where you don’t have a specialist in house tax or finance team constantly reviewing the latest changes to tax legislation to ensure that you are staying up to date and being as efficient as possible.

This is where BSN can be with you every step of the way. We know all businesses are different and have different challenges and we strive to understand the things that matter to you to tailor our advice.

Below we have listed out some common areas that we help advise business owners on and we hope you find this helpful:

Profit Extraction Planning

As an entrepreneur, you want to enjoy the benefits from running a successful business and we work with you to identify a tax efficient profit extraction strategy based on your personal circumstances. We can look at the various options available to you: salary, pensions, dividends, business costs, benefits in kind, family investment companies or building towards an exit. We get to understand you and your business and ensure you have the best fit in your profit extraction that meets your personal goals.

Tax Efficient Incentives for Employees

Throughout the COVID-19 pandemic we have seen that business owners have truly valued staff more than ever who have stood by them through the tough times. They often want to reward this by sharing equity with employees which also helps to retain them longer term. We work with clients to implement tax efficient staff rewards and establishment of commercially and tax effective share and share option incentives.

R & D Incentives

There are valuable tax incentives available to businesses undertaking research and development which can significantly reduce corporation tax liabilities or enable loss making companies to claim a payable tax credit from HMRC which helps reduce the cost of innovation.

Unlike other R&D specialists we will charge a fixed fee to support you in understanding what you are eligible for and preparing the claim in conjunction with you. R&D specialists will often charge a contingent fee based on the level of tax saved/reclaimed from HMRC.

Business Expansion and Structuring

As businesses develop and the focus of the entrepreneurs behind them evolves, it is important to ensure that the structure of the business remains appropriate and any risk of tax leakage is managed.

This is particularly important where a business has multiple shareholders or legal entities. We can help structure the business ready for expansion, particularly if it is looking at raising finance, purchasing property or acquiring new businesses.

Tax Efficient Acquisition and Disposal of Assets

Capital spending can place a substantial financial burden on businesses and identifying tax saving opportunities can significantly reduce the impact on businesses. Particularly in light of the super deduction for expenditure incurred from 1 April 2021 until the end of March 2023, where companies can claim 130% capital allowances on qualifying plant and machinery investments

Business Exit and Succession

Planning ahead for the succession of a business is important to ensure that business owners can take the appropriate steps to manage risks and portray their business in the best light to potential purchasers to maximise the sales price whilst also minimising tax exposures.

We work with clients throughout the process from carrying out a pre-sale tax health check, to undertaking any restructuring to facilitate the succession of the business to working with businesses on the transaction structure and supporting the owners through the sale process.

We work with business owners to achieve their succession goals and to realise the value they have built up in the business by optimising the financial and tax position including on:

Restructuring interests to facilitate succession or partition businesses following shareholder disputes through demergers and reconstructions

Mooch Development