With both the budget and the end of the tax year just around the corner Simon Young, director of Montpelier Chartered Accountants, outlines his tips on minimising your Corporate and Personal tax burden.
1. Cash in some of your capital gains if you made any this year obvious, but often left until the last minute.
2. Don’t buy equipment for the sake of it, but if you do need new kit, buy it in your current financial year.
3. Offsetting losses against capital gains can be beneficial but very complex. Take professional advice.
4. Pension allowances are to shrink drastically next tax year, so put as much as you can afford (up to £255,000) into your fund before 5 April.
5. Ensure you are claiming your maximum allowances against tax: business mileage; use of home as office etc.
6. Consider incorporating your business if you pay income tax at the higher rate of 40% or 50%, there may be considerable tax saving to be made on incorporation.
7. You may be able to reduce your tax bill by changing your staff remuneration strategy so check this before the start of the new tax year.
8. Make the most of government-approved incentives for subsidised or tax-free perks, such as mobile phones, meals and childcare voucher schemes.
9. Don’t rush to sell your business. Yes, taxes are currently favourable, but they’re likely to remain so: wait for the right time to sell.
10. You have until 5 April to put money into an ISA; £5,100 can be put into cash ISA with a further £5,100 into stocks and shares ISA. Returns are free of tax inside the ISA wrapper.
l These are only a guide. For more information see www.montpelierchartered.com. You should not take any action or refrain from taking action without first taking suitably qualified professional advice on your specific circumstances.