Tax Advice for Business Owners: Protecting Profit, Managing Risk, and Planning for Achievable Growth in 2025
By Paul Brown – Tax Director at IN Accountancy
Whatever stage your business is at—whether you’re just starting out, scaling rapidly, or planning your exit—high-quality tax advice can make a significant difference. From ensuring peace of mind around compliance to navigating the tax implications of major financial decisions, robust and commercially focussed guidance helps you retain more of your hard-earned value, both now and in the future.
Below, we’ve outlined how tax planning can support you at each phase of your business journey:
Start-ups: Building on the Right Foundations
Is my business structured correctly from day one?
Choosing the right structure—whether sole trader, partnership, limited company or group—can have a big impact on how much tax you pay. Each option comes with its own set of tax rules and reporting requirements. Getting this right early helps ensure you keep as much of your profit as possible and avoid unnecessary complications down the line.
Growing Businesses: Planning for the Next Level
Does my structure still serve me?
As your business evolves, the structure that worked in the early days may no longer be optimal. Transitioning from sole trader to limited company, for example, can bring benefits—but also introduces complexity. Reviewing your structure as part of your growth strategy ensures it continues to support your goals.
What tax reliefs are available on my investments?
Whether you’re investing in new technology, equipment or innovation, the tax system offers a number of incentives. From capital allowances on plant and machinery to R&D tax reliefs for qualifying projects, taking advantage of these can improve cash flow and reduce your tax liability—provided claims are structured correctly.
How can I afford to attract and retain the right team?
Recruitment is both a cost and a challenge. Tax-efficient remuneration strategies—from salary sacrifice schemes and employee benefits to share option plans—can help you incentivise your team without breaking the bank. These can also offer a competitive edge in a tough market.
What do I need to know before expanding overseas?
Entering new markets brings opportunity—but also complexity. From VAT and corporation tax implications to overseas trading regulations, careful planning is essential. A tax adviser with international experience and a trusted global network can help you navigate cross-border issues and avoid costly missteps.
Mature Businesses: Protecting and Optimising Your Position
How do I protect my business from risk?
If you’ve built up substantial cash reserves or hold valuable assets, you may want to consider a holding company or group structure. This can help shield your reserves from trading risks and give you the flexibility to invest without complicating your core business operations.
What’s the best way to buy out minority shareholders?
Managing changes in ownership—especially when exiting minority shareholders—can be done tax efficiently if planned properly. Structuring these exits with the right approach can help avoid unexpected liabilities and ensure value is retained within the business.
How do I involve the next generation without triggering a tax bill?
Bringing family members into the business—whether as active participants or future owners—requires careful planning. There are routes to transition ownership gradually and tax efficiently, but timing and structure are key. Done right, you can minimise immediate tax costs and avoid future complications.
Exiting the Business: Maximising the Value You’ve Built
I’m ready to sell—what should I consider?
There are many routes to exit, from trade sales and private equity to management buyouts or employee ownership trusts. While the sale price matters, the real question is: how much will you keep after tax? Planning ahead—ideally two years before a sale—can make a huge difference to the outcome and ensure you’re not caught out by unexpected liabilities.
I’m winding down, not selling—is there still planning to do?
Absolutely. If you’re closing your business, there may still be valuable assets—especially cash—that need to be extracted. Finding the most tax-efficient method to distribute these funds ensures you keep more of what you’ve worked so hard to build.
I’ve sold—surely my tax worries are over?
Unfortunately not. Selling a business often transforms your wealth from a tax-efficient asset (the business) into one exposed to Inheritance Tax (cash). Without planning, your estate could face a 40% IHT charge. Post-sale structuring is vital to protect the legacy you’ve created—something best considered well before the sale completes.
Get in Touch
At IN Accountancy, we understand the challenges and opportunities that come with each stage of business. Our experienced team works closely with you to understand your goals and provide commercially astute tax advice tailored to your needs. Whether you’re launching, growing, safeguarding or exiting, we’re here to help you plan confidently and compliantly.
