Do not miss out on the opportunity for tax savings.
There is still time to act and put measures in place before the tax year end of 5th April 2017.
The tax year-end provides an excellent opportunity to take stock and plan for the future.
- Marriage tax allowance, in a nutshell one of you must be a non-taxpayer and one of you must be a basic-rate taxpayer. Worth £220 but can be backdated so could be up to £432.
- Maximising pension contributions for the current year will save you current year tax. This is particularly relevant for larger contributions. The annual limit for 2016/17 is £40,000 but where the carry forward rules can be utilised, the contribution level could be much higher.
- Giving to charity attracts tax relief through the gift aid system. Consideration needs to be given to the timing of donations and when the tax relief is claimed.
- For sole traders and partnerships, consider what relief may be available for any losses arising in the current year against other income.
- Individuals have an annual exemption from capital gains tax of £11,100. Ensure that this is not wasted.
- Spreading income around families to ensure allowances, exemptions and lower tax bands are used.
Have a chat with your usual contact at Drummond Laurie or email email@example.com to discuss how to take advantage of the tax year-end opportunities.