- Submit your tax return on time on the internet, no later than 31 January following the tax year and pay tax by the same date to avoid £100 late filing penalty and 5% late payment surcharge.
- Claim all work related expenses, the cost of most subscriptions to professional bodies can be claimed as allowable.
- Consider ways to spread income around the family to make use of spouse / partners and children’s personal allowances and lower rate bands. Children should register for interest to be paid gross if their income is less than the personal allowance.
- The majority of families are entitled to some tax credits even where income exceeds £50,000. A protective claim should be considered at the start of the tax year even where income substantially exceeds £50,000 in case of a change in circumstances as claims can only be backdated 3 months.
- Check your tax code – if it is too low you will be paying too much tax. If tax has been deducted on Emergency tax code or at basic rate you may be able to claim a refund.
- Make use of tax advantaged investments where appropriate to minimise tax bills, e.g. up to £7,200 can be invested in an ISA, (to be increased to £10,200 from 6 October 2009 for people 50 and over and for others from 6 April 2010). Pension contributions can be made and investments in venture capital trusts and Enterprise Investment Schemes,
- All adults should have a Will to ensure that there assets are distributed in accordance with their own wishes; in addition an appropriately drafted Will may save inheritance tax.
- Keep all tax related records including all end of year payslips (P60), P11D, dividend vouchers, contract notes, receipts and invoices where possible.
- Employees should consider whether it is worth accepting a company car or providing their own and claiming a mileage allowance.
- If your customers are mainly businesses it may be worth registering for VAT even if you are below the threshold. Small businesses should consider the Flat Rate VAT scheme to minimise paperwork.
Finally use a good accountant, the HM Revenue & Customs may tell you how much tax you owe but they are unlikely to suggest how to minimise your tax liabilities.
The above is just an outline of some ideas for minimising your tax liabilities. SJB & Co would be pleased to advise you how to save tax depending on your particular circumstances. We can also deal with your tax return. For advice on how to save tax, call SIMON BELL on 01376 571358 or email me on email@example.com to discuss your affairs.