TaxPersonal TaxSMEs advised to reflect on tax

SMEs advised to reflect on tax

Small and medium-sized businesses must set out clear objectives and formulate a strategy for their future growth to benefit from tax reliefs, according to a leading tax expert.

Speaking at an Institute of Directors conference on successful small businesses, John Newman, tax partner at Smith & Williamson, said the question of managing tax was central to the future of any SME.

‘It is important to recognise that in the longer term you are almost certainly going to sell out once the business is successful,’ Newman said.

‘But tax is really the secondary discussion. The overall strategy should be agreed, then tax management can be discussed once this is set.’

Newman also said SMEs should be looking to minimise tax by considering ‘what is in their back pockets’ rather than the more traditional approach to revenue versus capital.

A small business database has been published by the Small Business Research Trust, in conjunction with the Department of Trade and Industry. It comprises answers to commonly asked questions, such as the effect of taxation, benchmarking and late payment on SMEs.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter