Every year your or I are looking for ways to reduce that dreaded tax bill. In the rush to get tax returns prepared and filed by April 15th, many overpay their taxes. Do you want your business to pay less tax this year? with some fairly straightforward tax planning, you can significantly reduce your corporate tax this year.

With Tax Season upon us,here are our five top tips that will help reduce your company's tax liability this year and that could help you save a bundle:

Business Pension Plan:

Establishing a pension plan can help you retain important employees.Tax credit can be claimed if the business has 100 or fewer employees.An employer with more than 100 employees may still be eligible if no more than 100 of the employees earned at least $5,000.Tax credits are extremely valuable because they are deducted directly from the taxes you owe, not gross revenues.

Decrease Capital Gains Costs:The difference between the sales price and the original cost (plus improvements) of property. Capital gains taxes can be a terrible financial shock to individuals who bought a house or business many years ago for the going price and now find it is highly valued, greatly due to inflation. Reinvest the proceeds of a sale into buying a replacement asset is one of the best ways to minimize capital gains. Because not all assets qualify for relief so, check first before utilizing this tip.

Personal Loans To Business:Many business owners lose track of loans they make to their business. As a result, they incorrectly classify the proceeds of the loan as part of their gross revenues. This artificially raises the gross revenues of the business and adds to the tax liability.Pay particular attention to charges on personal credit cards. You will be surprised how quickly the numbers add up.

Use Your Capital Allowances Maximum:By bringing capital expenditures - such as machinery - forward you will certainly save your company some tax. Companies generally receive a 25% allowance on plant and machinery related capital expenses, but SMEs companies get a 40% allowance in their first year. So, if you are a small or medium sized company, take advantage and make those types of purchases before the end of your first year trading.This is a little known and often misunderstood tax credit, but many companies can take advantage of it.

Get hold of correct reciept:

Employees should ask for VAT receipts whenever they make a purchase on behalf of the company. That will ensure you can claim back the VAT on all purchases that are VAT rated. If your company reviews it's tax affairs between two and three months before the end of your financial year, then you can start planning to minimize your tax liabilities effectively and legally.

Re-plan Your Dividends and Bonuses:A share of profits received by a stockholder or by a policyholder in a mutual insurance society.

Shares issued by companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years. These may be paid in lieu of dividends. A bonus may create good market sentiment by providing liquidity and displaying the companies confidence in its future. But in accounting terms it is just a realignment of capital so it should not affect share prices.

Smaller companies like owner-managed businesses, can save on National Insurance payments by taking dividends rather than paying themselves a salary. On average for a higher rate tax payer, the tax rate will be reduced to around 39% compared to 47%.

Pay Your Debts On Time:Any expenditure before the company year end will reduce the current year's tax liability. Bring forward that long overdue office repair or redecoration project or that direct marketing campaign you were considering for next year. Lets? face it, your office will look nicer.