The Hidden Power of Tax Credits: Unclaimed Opportunities for Business Owners
For business owners, managing expenses and boosting profitability are constant priorities. However, one powerful tool often overlooked is tax credits. Unlike deductions, which reduce taxable income, tax credits directly lower your tax liability, offering immediate financial benefits. Unfortunately at Lombard Accountants , we know that many businesses fail to claim the credits they’re entitled to, leaving valuable savings on the table.
What Are Tax Credits?
Tax credits are incentives designed to encourage specific activities or investments. Governments use them to support innovation, sustainability, employment, and economic growth. These credits can apply to various aspects of your business, from hiring practices to research and development (R&D), energy efficiency, and even exporting goods.
Commonly Overlooked Tax Credits
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Research and Development (R&D) Tax Credits: Businesses of all sizes can claim credits for investing in innovative products, processes, or services. This applies not only to high-tech industries but also to sectors like manufacturing, agriculture, and construction.
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Employment Incentives: Hiring underrepresented groups, apprentices, or people returning to work may qualify your business for tax credits. In Ireland, schemes like the Employment Investment Incentive (EII) can also provide relief for creating jobs.
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Energy Efficiency Tax Credits: Adopting sustainable practices, such as installing solar panels or upgrading to energy-efficient machinery, could unlock significant tax savings while reducing operational costs.
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Exporting and International Growth: Businesses expanding internationally may benefit from export-related tax incentives, designed to support global trade.
How to Identify and Claim Tax Credits
To unlock these savings, start by reviewing your business activities and expenditures. Consult with an accountant or tax advisor who specialises in your sector and understands local regulations. They can identify unclaimed credits, ensure compliance, and help you maximise your savings.
Why Act Now?
Unclaimed tax credits represent lost opportunities to reinvest in your business. By proactively identifying eligible credits, you can improve cash flow, fund growth, and gain a competitive edge.
Don’t let these opportunities go unnoticed. The hidden power of tax credits could be the key to unlocking your business’s full financial potential.
If you would like to discuss your business needs. Call Lombard Accountants on (01) 678 9960 or email hello@la.ie
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