At this time of year the catch cry of many business owners is: 'I need to spend money to save on tax'.

This kind of thinking is inherently flawed:

• Firstly you have to spend the money, which can cause all sorts of cash flow problems.
• Secondly every dollar you spend you will only realise a saving of say 30% being the company rate of tax.
• Thirdly reducing your profit to not pay tax will ultimately stunt the growth of your business...