As tax advisers, we regularly undertake tax planning to ensure that tax bills are minimised. However, there may not be significant profits upon which to save tax.

In such cases, we work with the clients to maximise their Working Tax Credits and Child Tax Credits entitlement - this being an invaluable source of income in "leaner" years. We regularly work with clients who are on smaller incomes to realise Tax Credits in excess of £10,000 tax-free per year.

Careful planning of capital expenditure can also create opportunities for the self-employed to claim Tax Credits which historically may not have been available. These additional funds can effectively pay for the capital equipment purchased.

We have recently worked with a young couple who have just started a business, enabling them to generate Tax Credits in excess of £20,000 tax-free over a two-year period. This example is expanded upon in case studies.