Our Top Tax Tips
- Put non-earners allowances to work
If your spouse earns less than their personal allowance, consider moving any income generating assets into their ownership. Regardless of whether they are earning, they will still qualify for their personal allowance. Making use of this could save you thousands every year.
- Check your tax coding
Check your code number and make sure the correct allowances and deductions are included.
- Use tax efficient savings
Savings schemes can reduce your tax bill, and build a nest egg for the future. Always use your ISA allowance!. Also consider a company share scheme, which can be highly tax efficient. Hold higher yielding investments in tax sheltered wrappers such as pension funds. Invest in national savings and investments savings certificates.
- Make the most of tax relief on pension contributions
Utilise remaining pension contribution allowances in 2009/10 and 2010/11 where higher rate income tax relief is available.
- Utilise capital gains tax allowances for asset transfers
Current allowances are £10,100 per person. Consider transferring assets between spouses or civil partners, to make best use of the exemptions available.
- Check your eligibility for tax rebates
Many of those eligible for a tax rebate are unaware. If you have been placed on the emergency code at any period there is a high chance that HMRC owes you money.
- Plan for inheritance tax
Inheritance tax can be one of the most expensive forms of taxation, but very few individuals make any effort to reduce their IHT burden. Start by making a will.
- Check whether you are receiving all relevant allowances
Most individuals will receive their personal allowance for income tax and national insurance automatically. However, there are numerous other allowances which you may not be claiming. For example, mileage allowances for business use of your car can reduce your tax bill significantly.
- Claim Tax Credits
HMRC currently offers around £3.7 billion of tax credits, much of which goes unclaimed, because people don't understand what they are entitled to.
- Sort out your Self Assessment tax return
If you are a self assessment taxpayer, completing your return early can result in big savings. In the first instance, if you get your return in by the end of October HMRC will calculate your tax for you. However, if you miss the 31st January deadline, you will automatically be fined £100.
For more information and support with your
business or personal
tax management
contact Hill Lillis
