Top Tax Tips 2017

The end of the tax year is only a few weeks away; it’s a good time to review your tax position to ensure you have maximised your reliefs and allowances before it’s too late. We have compiled the following checklist of key investment and tax planning ideas that you should be considering:

Capital Gains:

Have you used your annual exemption for 2016-17 of £11,100?

Inter-spouse transfers:

Have you minimised capital gains and income rates through these exempt transfers?

Inheritance tax:

Have you used your maximum gift allowances?

Charitable gifts:

Can you manage the level of your taxable income by making gift aid payments to reduce your income under allowance thresholds?

Your tax code:

Ensure you have been issued the correct tax code. If you are on the wrong code you may be paying too much tax.

ISAs:

Have you used your maximum annual investment of £15,240?

Pension contributions:

Currently pension contributions attract tax relief at your highest rate; consider maximising contributions. They are an ideal investment vehicles and under new rules offer excellent flexibility, access and Inheritance Tax benefits.

Inheritance Tax:

An increasing number of people are being drawn into the IHT net. Make sure you know if you have an IHT liability. IHT is a voluntary tax if you plan your affairs properly. Value can be removed from your estate by sensible gifts and the use of trusts. Make an informed choice regarding the IHT you might have to pay.

Trusts for your children:

You can reduce your estate by establishing a discretionary trust; the assets you wish to pass on can be protected from divorce or creditors. Such trusts are simple to understand and place you in control.

Your will:

Ensure your will is up-to-date. There have been important changes affecting will planning; review your will to ensure it is tax efficient.

Dividends:

If you are a business owner, consider advancing or delaying dividends to ensure that you fall into the lowest rates of tax.

Capital Allowances:

If you are buying capital assets for your business, is it beneficial to make the purchase before the end of the tax year in order to obtain the allowances a year earlier?

Research &
Development Relief:

You may not consider you undertake R&D in your business, however, the rules are widely drawn and the benefits of additional tax relief can be generous; are you missing out?

Your tax return:

This year get your tax return in early rather than waiting until the last minute rush; early submission will allow tax payments to be managed effectively and efficiently.

If you have any tax issues or would like to discuss how you can plan for the future, please contact us. We would like to assist you in managing your tax and financial affairs with straight forward and sensible advice.

Posted in Business News.