Time to consider year end tax planning

With the tax return filed (hopefully) on time, and the bill paid, now is the perfect opportunity to consider how to reduce next year’s liability.

“Many businesses make their accounts to 31^st March, so business tax planning is a good idea just now”, says Brearley & Co Tax Manager, Andrew Cowe.  “However, even taxpayers with different year ends, or those who do not run businesses at all, can look to try and lower their personal income tax liabilities.”

“Even the most basic planning can yield benefits.  Have you maximised pension contributions, or invested your annual ISA allowances?  Also, investments in EIS and VCT shares can offer significant income tax and Capital Gains Tax (CGT) reliefs”.

“As for businesses, they might consider accelerating the purchase of any plant or machinery they need, taking advantage of 100% capital allowances, whilst salary sacrifice arrangements can realise significant national insurance savings for both the business and its employees”.

“Ultimately what’s best for a business or an individual will depend on the circumstances, but a quick “tax health-check” may well pay dividends.  After all, it will be too late once the tax year finishes”!

Andrew Cowe – Tax Manager – Brearley & Co