Tax Planning 2013/2014

Mar 10, 2014

We are now approaching the end of another tax year and as such it is worth considering what can be done to minimise tax.

Whether you own your own business, pay significant amounts of tax or own some investment property there is an opportunity to reduce the tax liability, but only for a couple more weeks.

There are many options open to people and here are a few of them.

  • Have you though about investing more into your pension?
  • If you are going to be selling off a capital asset shortly is it worth thinking about disposing of it before the end of the tax year?  This way you can make sure you get this years allowance and then if you sell another asset next year then you can use that year's allowance too.  The allowance for this year is £10,900.
  • If you have a company car and your employer also provides private fuel you can avoid the taxable benefit by repaying the private fuel you have used.  The tax on the provision of private fuel is very expensive and you would have to drive a lot of personal miles to make it worthwhile.
  • If you receive child benefit, consider whether you or your partner will be affected by the claw back charge on higher earners.  Consider equalising your income (if possible) to avoid the charge.  In addition have you considered the need to file a Self Assessment Tax Return if your income is over £40,000 and you have been claiming child benefit?
  • If your income is in excess of £100,000 for the year have you considered the impact of the reduciton or loss of your personal allowance?
  • If you are a high income earner consider charitable donations as these could reduce or even remove the impact of the 45% tax rate.
  • Will you have business tax losses for the year?  If so there is potential to offset these and reduce your tax bill.

If you would like to learn more please contact us to discuss your individual circumstances in more detail.  The above list is only a brief summary and there may well be other options open to you.

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