Timing is often the key ingredient in tax planning.
As we are approaching the end of the tax year, we thought it would be a great opportunity to share our insights and offer you some key updated figures, so you can make the most out of this window leading up to the 5th April 2018.
The period leading up to the end of the tax year on 5 April is a prime time to take stock of your finances and tax position to minimise liability. As always, we are happy to advise on appropriate action and here is our comprehensive Year End Tax Planning Guide 2018 for your delectation.
Here are just a few of our ‘Tax Planning Top Tips’, we hope you enjoy them.
Buying A Property
- Many parents help when it comes to buying a first property for children. To take advantage of the SDLT exemption, parents need to be excluded from part ownership of the property (assuming they have bought a home before), or the exemption will be lost.
The timing of tax relief can maintain positive cash flow, so please contact us for further advice when planning plant and machinery purchases.
Consider transfer of assets from other relatives such as grandparents, and/or employing teenage children in a family business to use personal allowances and the basic rate band.
Consider the payment of a pension contribution by the company. These are usually free of tax and NIC for the employee (see also Pensions section). Provided the overall remuneration package is justifiable, the company should also get tax relief on the contribution.
Landlords: plan now for interest relief restrictions
The change may push basic rate taxpayers over the threshold where they become higher rate taxpayers. The key point is to plan ahead and compute by how much your income will increase year on year as a result of the restrictions.
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