Are you maximising your use of available tax allowances / breaks? Here are some quick wins you may not have thought of, and all represent legitimate tax planning:
1: Use of Home - If you run your self-employed business from home, HMRC recognise that a share of the costs of running your home office can be included as an expense against income. There are specific guidelines covering different scenario's on the HMRC website
2: Income Generating Assets - If you are married or have a civil partner, you may transfer assets between spouses without tax consequence. This means income generating assets can be transferred to the spouse with the lower tax rate.
3: Motor costs - If you run a business, sole trader or limited, have you had your motor expenditure 'audited' by your accountant to identify best treatment? Its a complex area, with different reliefs operating depending on how the vehicle is used and the model. Handsome savings are possible.
4: Employing a spouse: Most people are aware that business owners often employ a spouse on a low salary, if the spouse is non-working. It allows the spouses unused personal tax allowance to be used, whilst getting a deduction in the books of the working spouse. There must be some substance to the arrangement though! This might be assisting on admin side or acting as company secretary.
5: ISA's, pensions etc: These tax saving 'vehicles' are extremely tax efficient and for the majority of people are suitable for virtually any savings for the medium/long term. Remember, with pensions, money is locked in once contributed, and with ISA's, its one allowance per year - you snooze, you lose!
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There is a small amount of small print, pls email us at plymouth@taxassist.co.uk !
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