Always let us think about your personal circumstances, but here are some general tips:
- If you’re a limited company, make dividend payments before 5 April 2016 to avoid the Government’s 7.5% tax increase. Make sure you have documentation to prove the date you made the payments. We can help.
- Transfer income taxed at higher rates to a spouse paying tax at a lower rate so neither of you waste your £10,600 tax-free allowance for 2015-16. Professional advice is essential with this one so you don’t get into trouble – we’re here to help.
- Invest in a personal pension – it’s a brilliant way to save tax. There are limits and rules but investing £1 in a personal pension can cost as little as 55p. We can help you save tax and look forward to a better retirement.
- Not a lot of people know this – you can get tax relief on your life assurance policies if they’re in the name of your business. And if the worst happens and they have to pay out, the proceeds are tax free.
- Have some of your investments done well? If yes, that’s brilliant – so maybe now is the time to sell some of them if you want to keep you tax burden down. It can involve selling shares and having you or your spouse buy them back after 30 days – but with the right advice you can make tax-free gains of up to £11,100 in 2016-17.
- Use it or lose it– you can invest up to £15,240 in an ISA and £4,080 in a Junior ISA each year and there’s no tax to pay. Other tax-free investments include National Savings Certificates and Friendly Societies. You must take independent financial advice before acting on this one.
- Are your investments doing their best for you? You need them to provide the right balance between giving you some income and growing in value, that’s capital growth. Don’t waste your Capital Gains Tax allowance – up to £11,100 for individuals in 2016-17. Independent financial advice is essential on this one.