At this time of year we think about New Year’s resolutions. It is also a good time to start planning your tax affairs before the end of the tax year on 5th April. Tax planning might seem like a mine-field. However, the best tax planning advice involves our clients paying the minimum amount of tax within the bounds of legislation, at the correct time and through the appropriate mechanisms.
Rawcliffe’s help many people with their personal tax planning.
The issues we cover are:
- Using your personal tax reliefs fully
- Benefits in kind vs salary
- Efficient Pension contributions
- Minimising capital gains tax
We can calculate your potential tax liability using a range of options:
- Salary vs dividends
- Employing your partner / spouse in the business
- Unincorporated vs Limited Company
Similarly, we can review your investment and savings strategy to take advantage of all tax breaks and consider tax exempt savings products.
Other issues we consider when reviewing your best personal tax strategy are:
- The tax aspects of your home
- Making a will and inheritance tax planning
- Child tax credit and working tax credit
- Any other allowances and reliefs you may be entitled to
Here’s a summary of the key issues you should think about from your own perspective.
- Capital and income can normally be transferred between husband and wife without any tax liabilities. Such transfers must be outright gifts and can be made free of both capital gains tax and inheritance tax
- You could pay your husband / wife / partner a salary if they can work in your business
- You might consider taking your husband / wife / partner into partnership
- You can give one-off or recurring donations to charity
- Keeping digital records of all business trips showing the date, mileage, and purpose of trip to satisfy HMRC queries
- You should check pension arrangements to ensure they are adequate
- Employees in a company scheme may consider paying additional voluntary contributions to help boost their final pension, or may consider contributing to a stakeholder (or similar) pension.
Please call us for a personal tax planning session
Rawcliffe & Co Helpsheets
- Personal Tax Planning : Download
- Should You Incorporate Your Business? : Download
- Business Tax planning session : Download
- Making a will : Download
- Maximising the Profit in your business : Download
- Making Tax Digital : Download