Are you ready for the end of the tax year?

Apr 17, 2015

Croombs Chartered Accountants in Hampshire

As the end of the financial year approaches I wanted to highlight some areas where people can legally reduce their tax bill.

Here are some simple things you can do to make sure that your tax bill is minimised:

  • Consider making a payment into your pension.  You must speak to financial adviser before you do this to make sure it is appropriate for you, but from a pure tax planning perspective making a pension contributions is one of the best ways to reduce your tax liability.  Of course you will be locking this money away until retirement so you will need to weigh up the pro’s and con’s of this.
  • Make sure any expenses you have paid for personally have been reclaimed from the company, or if you don’t want to be reimbursed at least make sure there is a record of the expenditure so that your Accountant can claim tax relief on these payments.
  • Consider fully utilising your personal tax allowances. As a business owner could you declare further dividends to maximise your income without paying additional personal tax. In addition if you are approaching the higher rate tax band you could consider repaying any loans you have made to the company before taking extra money out and incurring 40% tax.
  • ISA allowances.  Have you used your full ISA allowance yet?  From last July individuals could invest up to £15,000 per year in an ISA which is free from tax on interest earned.
  • Capital Gains Tax planning.  Each year individuals can make capital gains of up to £11,000.  Consider whether you want to make use of this allowance and sell some assets to crystallise the gain.  You could then either re-invest the money or bank it for other future expenditure.

To find out about how we help our clients pay the right amount of tax please give us a call.  All initial meetings with us are free of charge and with no obligation to you.

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