How can a business in the startup phase pay less tax?

A number of capital allowance schemes have been introduced to encourage investment in particular assets or by particular sorts of businesses. Such schemes give tax relief on business equipment such as computers, cars, tools or furniture. However, you cannot claim for things that you sell as your trade. Of course, if you buy on hire-purchase, you can claim a capital allowance on the original cost of the item, but any interest and other charges will be counted as business expenses. For startups in the first year of business some extra allowances are also available. The capital allowances investment schemes page on the HMRC website provides a brief description of each scheme, linked to a detailed description.