Business Expense Tax Savings Calculator

Business Reliefs

The Business Expense Tax Savings Calculator, developed by SBX Accountants, is a powerful tool designed to help small business owners get a sense of the types of tax relief available and optimise their financial planning. It offers detailed functionality to account for key allowable expenses, such as car purchases with tax relief based on CO2 emissions—new zero-emission cars qualify for a 100% deduction until March 2026, while cars with 1–50 g/km get an 18% annual deduction, and those over 50 g/km can claim 6%. The calculator also includes a mileage allowance of 45p per mile for business travel, clarifies that entertainment expenses are generally not allowable (except in specific cases like staff events), and calculates capital allowances for assets like vans, motorcycles, and equipment, which can be fully deducted under the Annual Investment Allowance (AIA) up to £1 million, except for standard cars unless used for hire.

How it Works

The calculator works by taking your annual profit before expenses and subtracting the total allowable expenses you input, such as stock, staff costs, professional fees, and software subscriptions, to determine your taxable profit. It captures the main allowances available, making it a simple yet effective tool for small businesses to estimate their tax liability without getting overwhelmed by complex tax rules. For example, if your expenses exceed your profit, the calculator will show a taxable loss, like -£5,000, and explain that no corporation tax is due for that period. It also provides guidance on what to do next, such as the ability to carry forward losses to reduce future tax bills or carry them back to reclaim tax from the prior year subject to HMRC rules and business circumstances.

Deadlines

The Business Expense Tax Savings Calculator offers clear guidance on corporation tax deadlines and rates, making it easier for small business owners to stay on top of their tax obligations. Corporation tax is due 9 months and 1 day after the end of the accounting period (e.g., for a year ending 31 March 2025, payment is due by 1 January 2026). The calculator automatically applies the correct tax rate based on your taxable profit—19% for profits up to £50,000, with marginal relief up to £250,000, and 25% for profits above that (as of April 2025). This ensures you know exactly where you stand and can take advantage of any available relief.

Cash Flow Planning

In addition to tax rate clarity, the calculator is a valuable tool for cash flow planning. By estimating your taxable profit and applicable corporation tax rate, it helps you anticipate your tax liability and payment timeline. This foresight allows you to manage your finances effectively, ensuring you set aside the necessary funds for tax payments while maintaining liquidity for other business needs, such as investments or operational expenses.

By capturing the main allowable expenses and providing clear, practical guidance, the Business Expense Tax Savings Calculator empowers small business owners to maximise their tax savings, understand their tax position, and make informed financial decisions - all in a user-friendly format.

Get in Touch

This tool provides an estimate of your tax savings and liability based on the inputs provided. It is not guaranteed to be accurate and should not be used as a substitute for professional financial advice. Tax rules and rates can change, and individual circumstances may vary. Always consult a qualified accountant or tax advisor, for personalised advice before making financial decisions. Please reach out to us if you would like more detailed advice on what business expenses you can claim.