Nobody wants to pay any more tax than they need to. There are simple steps a company owner can take to reduce their corporation tax liability which are acceptable tax mitigation and not illegal tax evasion. Some of the main points to consider are:
Company pension contributions - Making pension contributions is one of the most tax-efficient planning a company can undertake. The contributions by a company to a pension scheme are usually fully allowable in calculating the profits chargeable to corporation tax.
Remuneration strategy - It is important that you regularly review how you draw income out of your company. It is worth considering reducing salary to a level where you can still claim state benefits and then maximise the use of dividends. The attraction of paying a dividend is that it does not attract national insurance contributions and the payment of a dividend has no tax consequences for your company.
Claiming Allowances - It is essential that a company claims all available allowances to reduce corporation tax. The main allowances that are either not claimed or only partially claimed are Research and Development Relief and Capital Allowances. It is worth obtaining expert advice on these areas to ensure you receive all the allowances you are entitled.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.