Nine legitimate ways to cut your corporation tax bill this year

Most owner-managed businesses overpay tax not because they miss an exotic scheme, but because ordinary reliefs go unclaimed. The fix is usually a better record, not a cleverer structure.

Start with capital allowances. Full expensing lets companies deduct the whole cost of qualifying new plant and machinery in the year of purchase. Fixtures inside a commercial property you own are frequently missed entirely, and a retrospective claim is still possible.

Research and development relief remains valuable but the compliance bar has risen sharply. Claims now need an additional information form filed before the return, with a named competent professional and a clear description of the scientific or technological uncertainty you tackled. Vague claims get challenged.

Pension contributions made by the company are deductible and avoid the double hit of employer National Insurance and dividend tax. For a profitable company where the owner takes a modest salary, this is often the single largest lever available.

Finally, check your loss position before you do anything else. Group relief, carry back and terminal loss rules interact, and the order in which you claim can change the cash you get back this year rather than in three years' time.