How to minimise your tax bill legally — a Brighton accountant's guide

Our priority for every client is simple: minimise the tax you pay, legally and sustainably. This is not about loopholes or aggressive schemes — it is about knowing the rules thoroughly and applying them properly. Here are the strategies we use most often for Brighton clients.

1. Get your business structure right

Many Brighton sole traders are paying significantly more tax than they would as a limited company — sometimes thousands of pounds more per year. The optimal structure depends on your profit level, how you want to extract money, and your personal circumstances. We review this with every client and make a recommendation based on your specific situation.

2. Salary and dividend planning for limited company directors

If you run a limited company, the split between salary and dividends is one of the most important tax decisions you make each year. Getting this right can save a significant amount in National Insurance contributions while keeping you fully compliant.

3. Claim every allowable expense

This sounds obvious but many Brighton business owners consistently under-claim on expenses. Home office costs, mileage, professional subscriptions, training, equipment, and software all qualify. We review expense claims carefully because every pound of legitimate expenses reduces your taxable profit.

4. Pension contributions

Pension contributions receive tax relief at your marginal rate — which means for a higher-rate taxpayer, every £100 paid into a pension effectively costs £60. For limited company directors, making pension contributions through the company also saves corporation tax and avoids employer National Insurance.

5. Capital allowances

If your Brighton business has purchased equipment, vehicles, or machinery, capital allowances can significantly reduce your tax bill. The Annual Investment Allowance currently allows businesses to deduct the full cost of qualifying assets in the year of purchase.

Tax planning is not something to do once a year at the deadline — it is something we build into your ongoing relationship with us. If you would like to understand how much we could save you, get in touch for a free consultation.