In brief: what are the tax planning options available for companies and individuals?
For companies it is all about the most tax efficient way of extracting profits such as dividends verses salary, contributions to pensions and receiving tax efficient benefits. Also important is utilising capital allowances and thinking carefully about the timing of expenditure.
For the self-employed, protective claims for tax credits should be considered if profits fluctuate.
If you are married, options are available to fully utilise personal allowances and ownership of income producing assets such as investments and rental properties.
Personal pension contributions remain tax efficient for all. Company contributions to an employee’s pension will attract corporation tax relief and will be free of income tax and national insurance for the employee (up to certain limits). Individuals can claim relief from income tax and national insurance for contributions to personal pension schemes (subject to certain limits).
These are just a few of the options for planning ahead and now is the time to sit down and arrange your affairs to ensure you are as tax efficient as you can be. We would be delighted to work out a plan with you so please contact us.