A capital allowance lets your business claim tax relief on equipment, vehicles and other assets. It reduces your taxable profit in the year you make the claim.

The Annual Investment Allowance lets most businesses deduct 100% of qualifying asset costs from taxable profit in the year of purchase, up to £1 million.

Taxable profit is the figure your tax bill is calculated on. It's your income minus the business expenses HMRC allows you to deduct.

A company pension allows your limited company to contribute into a director or employee’s pension scheme, usually with Corporation Tax relief and no National Insurance on employer contributions.

VAT is a tax on most goods and services, and UK businesses must register and charge it if their VAT-taxable turnover exceeds £90,000 in a 12-month period.

A limited company is a separate legal entity from its owners, with its own tax position, limited liability and a formal structure for running a UK business.

A sole trader is a self-employed individual where the business and the owner are the same legal entity, with profits taxed as personal income through Self Assessment.

Corporation Tax is a tax on company profits in the UK, charged at 25% for most companies, with reliefs and thresholds depending on profit levels.

A director’s loan records money moving between you and your limited company outside salary or dividends, and shows who owes who at any point in time.

Without tax planning, business owners often face cash flow pressure, missed allowances and unexpected tax bills that limit confidence and long-term financial control.