SMEs face various tax risks throughout the life cycle of the business. Entrepreneurs just starting out should be aware of the risk of trapped losses, the implications of bringing spouses in as shareholders and bestowing employees with shares, as well as examining ways to maximise R&D tax credits. Once up and running and making a profit, cash extraction and associations with other companies present new challenges. Finally on exit, owners of SMEs must consider how they will secure entrepreneurs’ relief and separate their company and personal assets to ensure minimal tax losses and maximum return.