UK R&D tax relief has changed substantially, so old claims about businesses automatically receiving a fixed percentage of qualifying expenditure should not be used. For accounting periods beginning on or after 1 April 2024, businesses may need to consider the merged R&D expenditure credit scheme or Enhanced R&D Intensive Support for qualifying loss-making R&D-intensive SMEs. We help identify whether the activity potentially meets the tax definition of qualifying research and development and whether the required evidence exists.
Q: Your review can include:
Qualifying technical activitiesEligible expenditure categoriesStaff and contractor costsClaim notification requirementsAdditional information requirementsSupporting project documentationHMRC compliance considerationsSoftware companies in Manchester, engineering firms around Sheffield and technology businesses in London may all undertake technical work, but commercial novelty alone does not automatically make expenditure eligible.
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Business Owners Speaking About Better Tax Clarity Managing Director · London “ Pearl Lemon Accountants helped us understand how salary, dividends and pension contributions affected both the company and my personal tax position. Their review gave us a clearer plan before our year end instead of leaving decisions until the accounts were prepared. I now understand what needs to be documented, when decisions need to be made and how much cash the company should retain. Oliver Grant Managing Director, Northbridge Digital Ltd, London Founder · Manchester “ Our Corporation Tax position changed significantly after a stronger trading period, and we were unsure which decisions needed attention before the year end. Pearl Lemon Accountants reviewed our forecast, planned equipment purchases and available reliefs in a clear and practical way. Their communication was straightforward, and we finished the review with a realistic timetable rather than a last-minute list of tasks. Hannah Mercer Founder, Calderstone Engineering Services, Manchester Business Owner · Cardiff “ Pearl Lemon Accountants helped us review our VAT position after turnover began approaching the registration threshold. They explained the rolling 12-month test, checked our records and showed us how registration could affect invoices and cash flow. The advice was practical and easy to follow, which gave us confidence that we were preparing properly for the next stage of growth. Gareth Bowen Owner, Tŷ Glas Property Maintenance, Cardiff Director · Swansea · Cymraeg “ Mae Pearl Lemon Accountants wedi ein helpu i ddeall sut mae penderfyniadau am gyflog, difidendau a phensiynau yn effeithio ar y cwmni ac arnaf fi’n bersonol. Roedd yr adolygiad yn glir, yn ymarferol ac wedi’i gwblhau cyn diwedd y flwyddyn ariannol. Bellach mae gennym gynllun pendant a gwell dealltwriaeth o’r camau sydd angen eu cymryd. English translation: Pearl Lemon Accountants helped us understand how decisions about salary, dividends and pensions affect the company and me personally. The review was clear, practical and completed before the end of the financial year. We now have a definite plan and a better understanding of the steps we need to take. Lowri Evans Director, Cwm Digital Solutions, Swansea
UK Tax Planning With Local Commercial Context Business owners face the same HMRC framework across much of the UK, but local sectors, personal tax rules and commercial calendars can change the questions that matter. 📍 London Business Owners London directors often combine company income with investment, property or other personal income, making remuneration, dividend and year-end planning particularly important. 📍 Birmingham and the Midlands Manufacturing, logistics, construction and engineering businesses around Birmingham frequently need capital allowance, vehicle, payroll and investment expenditure reviewed alongside Corporation Tax. 📍 Manchester and the North West Manchester's technology, digital, ecommerce and professional-services businesses may need support across VAT, director remuneration, R&D eligibility and growing payroll obligations. 📍 Leeds and Yorkshire Owner-managed businesses around Leeds, Sheffield and wider Yorkshire can benefit from reviewing capital expenditure, succession, family ownership and company cash requirements before year end. 📍 Glasgow and Scotland Scottish business owners need company tax planning to be considered alongside Scotland's separate personal Income Tax bands where those rules affect the director or shareholder. 📍 Cardiff and Wales Cardiff and wider Welsh businesses can combine UK Corporation Tax and VAT planning with sector-specific questions across professional services, construction, tourism and owner-managed family companies. Seasonal Planning Bank Holidays Should Not Compress Your Tax Planning Christmas, Boxing Day, Easter and the August bank holiday can reduce the number of working days available for gathering records and authorising payments. If a company year end or HMRC deadline sits close to a bank-holiday period, plan the work earlier rather than leaving signatures, payroll decisions or documentation until the final week.
UK Tax Planning With Local Commercial Context Business owners face the same HMRC framework across much of the UK, but local sectors, personal tax rules and commercial calendars can change the questions that matter. 📍 London Business Owners London directors often combine company income with investment, property or other personal income, making remuneration, dividend and year-end planning particularly important. 📍 Birmingham and the Midlands Manufacturing, logistics, construction and engineering businesses around Birmingham frequently need capital allowance, vehicle, payroll and investment expenditure reviewed alongside Corporation Tax. 📍 Manchester and the North West Manchester's technology, digital, ecommerce and professional-services businesses may need support across VAT, director remuneration, R&D eligibility and growing payroll obligations. 📍 Leeds and Yorkshire Owner-managed businesses around Leeds, Sheffield and wider Yorkshire can benefit from reviewing capital expenditure, succession, family ownership and company cash requirements before year end. 📍 Glasgow and Scotland Scottish business owners need company tax planning to be considered alongside Scotland's separate personal Income Tax bands where those rules affect the director or shareholder. 📍 Cardiff and Wales Cardiff and wider Welsh businesses can combine UK Corporation Tax and VAT planning with sector-specific questions across professional services, construction, tourism and owner-managed family companies. Seasonal Planning Bank Holidays Should Not Compress Your Tax Planning Christmas, Boxing Day, Easter and the August bank holiday can reduce the number of working days available for gathering records and authorising payments. If a company year end or HMRC deadline sits close to a bank-holiday period, plan the work earlier rather than leaving signatures, payroll decisions or documentation until the final week.
Three Business Owner Tax Planning Scenarios 01 £240,000 Profit Forecast Creates a Corporation Tax Planning Window A year-end review for a growing owner-managed company Planning Type Corporation Tax and year-end review Business Profile UK limited company Forecast Profit £240,000 before final adjustments Decision Window Before company year end Commercial Issue The directors know the final quarter has been stronger than forecast but have not recalculated their expected tax position. Assessment Management figures are reviewed alongside planned expenditure, connected-company interests, remuneration and transactions expected before year end. Planning Work Commercially justified actions are considered, with the impact on company cash taken into account before any decisions are made. Practical Result The directors have a clearer view of their expected tax position, available cash and the actions that need to be completed before year end. 02 £95,000 Rolling Turnover Triggers a VAT Decision Checking the VAT position before pricing and invoicing become harder to change Planning Type VAT registration review Business Profile Owner-managed consultancy Rolling Turnover £95,000 Primary Risk Late registration Commercial Issue The owner has been monitoring annual accounts rather than taxable turnover over a rolling 12-month period. Assessment Taxable sales are reviewed month by month and the registration position is checked against the applicable rules. Planning Work The business reviews its invoicing, customer contracts, bookkeeping records, pricing and the timing of its first VAT return. Practical Result The owner has a clear registration timetable and can address any pricing or invoicing changes before they become a problem. 03 £80,000 Director Drawings Need a Better Extraction Plan Salary, dividends and pension contributions reviewed together Planning Type Director remuneration Business Profile UK trading company Personal Cash Requirement £80,000 Review Areas Salary, dividends, pension, PAYE and reserves Tax Year 2026/27 Commercial Issue Changes to dividend tax rates from 6 April 2026 mean previous extraction assumptions may no longer provide the right basis for planning. Assessment The director's company profit, distributable reserves, salary, other income, pension objectives and household cash requirements are considered together. Planning Work Different remuneration options are compared rather than assuming that one approach will automatically be the most suitable. Practical Result The director has a clearer understanding of the impact of different extraction options on company cash, personal tax and pension planning.
A Tax Planning Process Built Around Decisions Our process gives business owners a clear sequence from current position to implementation and review. 1 Position Review We review company accounts, taxable profits, ownership, remuneration, cash requirements and upcoming transactions. → 2 Tax Assessment Relevant Corporation Tax, Income Tax, dividend, VAT, PAYE and relief considerations are identified. → 3 Scenario Comparison Where more than one legitimate route exists, we compare the tax and cash-flow consequences before a decision is made. → 4 Implementation Agreed actions, documentation, accounting entries and relevant filing requirements are scheduled before the applicable deadline. → 5 Ongoing Review The position is revisited when profits, ownership, legislation, investment plans or personal circumstances materially change.
Tax Work That Connects the Company to the Owner Tax planning for business owners should not treat the company and the shareholder as two unrelated files. 01 Company and Personal Tax Considered Together We consider how company decisions can affect the owner's personal tax position, rather than reviewing Corporation Tax in isolation. 02 HMRC Rules Before Marketing Claims Rates, thresholds and reliefs are checked against current UK rules so historic tax claims are not recycled into current planning. 03 Decisions Reviewed Before Deadlines Year-end planning is scheduled while owners still have time to authorise legitimate transactions and gather the necessary paperwork. 04 Cash Flow Remains Part of the Calculation A tax deduction is not automatically a good commercial decision, so company cash requirements are considered alongside potential tax treatment. 05 Ownership Changes Get Early Attention Business sales, succession, new shareholders and group structures should be reviewed before agreements create unintended tax consequences. 06 UK-Wide Support With Regional Awareness We support business owners from London and Birmingham to Manchester, Leeds, Glasgow and Cardiff while recognising that personal tax treatment can differ in Scotland.
UK Business Tax Figures Worth Knowing These figures provide a useful reference point for UK business owners reviewing Corporation Tax, VAT and shareholder extraction decisions. UK Business Tax Indicator Current Figure Relevance to Business Owners UK private-sector businesses 5.7 million Shows the scale of the UK owner-managed business economy. Small UK businesses 5.64 million 0 to 49 employee businesses represent the overwhelming majority of the private-sector business population. Small businesses as share of total 99.18% Small companies form most of the private-sector business population. Corporation Tax small profits rate 19% Applies to qualifying companies at the lower profit level. Corporation Tax main rate 25% Applies to companies above the main-rate profit threshold. Marginal Relief range £50k to £250k Relevant to qualifying companies between the lower and upper profit limits. VAT registration threshold £90,000 Taxable turnover is monitored on a rolling 12-month basis. Dividend allowance 2026/27 £500 Dividend income above the allowance can be taxable. Basic dividend rate 2026/27 10.75% Applies according to the shareholder's relevant tax band. Higher dividend rate 2026/27 35.75% Important when comparing extraction options. Sources: HMRC, GOV.UK and Department for Business and Trade. Figures checked August 2026. The Department for Business and Trade estimated 5.7 million private-sector businesses in the UK at the start of 2025, including approximately 5.64 million small businesses. Small businesses represented 99.18% of the total business population. For Corporation Tax, the 2026 financial year retains a 19% small profits rate for qualifying companies with profits of £50,000 or less and a 25% main rate above £250,000, with Marginal Relief potentially applying between those limits. Associated companies can affect the relevant thresholds. The VAT registration threshold is £90,000, while the dividend allowance for 2026/27 is £500. From 6 April 2026, dividend rates above the allowance are 10.75% at the basic rate, 35.75% at the higher rate and 39.35% at the additional rate, subject to the individual's circumstances.
