Tax mitigation

Nobody wants to pay any more tax than they need to.

There are simple steps a company owner can take to reduce Corporation Tax liability. These are acceptable tax mitigation steps, not illegal tax evasion. Some of the main points to consider are:

Company pension contributions

Making pension contributions is one of the most effective pieces of tax-efficient planning a company can undertake. The contributions a company makes to a pension scheme are usually fully allowable in calculating the profits chargeable to corporation tax.


It’s important to regularly review how you draw income out of your company. It’s worth considering reducing salary to a level where you can still claim state benefits and then maximising the use of dividends. The advantages of paying a dividend are that they don’t attract National Insurance contributions and have no tax consequences for your company.

Claiming Allowances

It’s essential that a company claims all available allowances to reduce Corporation Tax. Amongst the most common allowances that are either not claimed or only partially claimed are Research and Development Relief and Capital Allowances. It’s worth getting expert advice here to make sure you receive all the allowances you’re entitled to.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.