7 Business Tax Credits You Need to Take Advantage of in 2019

By Ashutosh Jha → Last Updated on Wednesday, April 10, 2019
Every year, millions of families in the UK miss out on billions of pounds of unclaimed tax benefits. Many UK businesses -- especially small businesses -- miss out on unclaimed benefits as well.

If you're getting ready to file your taxes for the year, be sure to consider all of the potential tax credits available to you.

7 Business Tax Credits You Need to Take Advantage of in 2019
Not sure which credits apply to your business?

Business Tax Credits Advantages

Read on to learn more about seven commonly overlooked business tax credits that you can and should take advantage of in 2019.

1. Home Office Expenses

If you currently run your business out of your home office, you are eligible for a number of home office tax credits.

You can deduct the costs of your home office from your total tax bill each year. Even without providing any itemized bills or receipts, you can claim a deduction of £4 per week.

You can claim even more money, though, if you're willing to do a little math.

By taking the time to figure out what percentage of your home is taken up by the office, you can deduct that percentage of your monthly expenses from your final tax bill.

You can adjust for your utility costs (water, energy, internet, etc.), and you can deduct the cost of office supplies, pay stub generators, and other tools, too.

2. Magazine and Journal Subscriptions

Did you know that you can deduct the cost of magazine and journal subscriptions, too?

The key, of course, is to make sure you can prove that those subscriptions are relevant to your business.

This might not seem like a big deduction. After all, how much money do you really spend on subscriptions each month?

Even if you subscribe to just two or three different magazines or journals each month, though, that money adds up throughout the year.

Remember, too, that when you're running a small business, every little bit counts. If you have the opportunity to deduct a little extra money from your final tax bill, why wouldn't you?

3. Telephone Expenses

In addition to subtracting your other home office expenses, you can also deduct the cost of your phone system. Telephone expense deductions include your landlines, office landlines, and even your mobile phone.

If you receive business calls on your home landline, you can deduct the cost of these specific calls. You can deduct a portion of your mobile phone usage, too.

Sometimes, you can even deduct the full cost of your mobile phone contract. In order to do this, though, you'll need to be able to prove that you only use your mobile phone for personal use on a limited basis.

The full cost of your office landline can be deducted from your tax bill, whether it's located in a separate building or in your home office. Just make sure that the bills are issued to your the company rather than to you as the business owner.

4. Plant and Machinery Costs

As a small business owner, you're free to deduct to cost of your "plant and machinery" equipment.

This includes office equipment like computers, printers, fax machines, and even desks and chairs. It also includes any other equipment you need to run your business effectively.

Before you take advantage of these deductions, you need to make sure you purchase this equipment in the company's name, rather than with your own personal funds.

The receipts and invoices should reflect the fact that these are company purchases, too.

5. Enhanced Capital Allowance

To encourage businesses to make use of energy saving equipment, the UK government recently introduced the Enhanced Capital Allowance credit, also known as ECA.

This credit provides your business with a tax break if you engage in practices that help lower carbon emissions and are good for the environment. The following are some specific practices that are rewarded with this break include:

  • Using cars with low CO2 emissions
  • Using water-saving equipment
  • Using energy-saving equipment
  • Using gas, biogas and hydrogen refueling equipment

These are known as first-year allowances. If you don't claim them all during the first year, you can claim the remainder during the next accounting period.

6. Business Renovation Allowance

Small- and medium-sized enterprises can also receive a tax break if they have renovated their building during the last year.

In fact, you might even be eligible for a 100 percent tax incentive on any of the renovations you carry out.

In order to claim this credit, you need to make sure that the building you plan to use was empty for at least one year. That building also needs to have been used in a different capacity than what you're using it for.

For example, if you're planning to revive an abandoned warehouse for your clothing store, you could make use of the Business Renovation Allowance.

7. R&D Tax Credit

Finally, don't forget to take advantage of the Research and Development (or R&D) tax credit.

According to this useful guide, many businesses don't realize they can take advantage of this tax credit. Even if your business doesn't have a research lab attached to it, you can qualify for the credit.

If you made efforts to improve your products or processes over the last year and have documentation to prove it, you will likely be able to claim this tax credit and lower your tax bill as a result.


Take Advantage of These Business Tax Credits Today

As you can see, there are a lot of business tax credits that can help you decrease your tax bill and avoid paying more than you should.

You definitely need to keep these tax credits in mind when you get ready to file your taxes this year.

Don't forget to check, too, and see if you can go back and claim any of these credits for past tax years.

Do you want to learn more about tax preparation and managing your business's finances? Do you want to learn more about managing your business in general?

Either way, we've got articles that can help you. Check out the Business Advice section on our site today to get started.

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Ashutosh Jha

Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
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