The tax year ends on 5th April.
There are lots of tax planning issues at this time of year. Here a just a few:
•Have you utilised your Capital Gains Tax personal exemption?
•Have you used up your basic rate tax band for income tax. If you own a company should it be paying you a dividend now to avoid wasting any basic rate tax band?
•If your employer pays for the private fuel used in your company car you can avoid the car fuel benefit tax charge if you repay your employer for the private fuel before the end of the tax year. The benefit in kind charge is expensive and the private fuel refund may be less.
•For Inheritance Tax purposes each person can give £250 a year to any number of recipients, as well as £3,000 annually over and above that amount. They can also make regular gifts out of their income (not capital) that should fall to be exempt.
•If you are married or in a Civil Partnership and one partner/spouse has a much lower level of earned income, consider transferring income producing assets to the lower income earner. With Income Tax rates at a maximum 45% this current tax year, savings could be significant.
•If you or your partner/spouse are affected by the Child Benefit claw back for high income earners, have you considered equalising your income (if possible) to avoid the charge.
•If your income is likely to exceed £100,000 this tax year have you considered the potential reduction or loss of your personal tax allowance?
•If you are a high income earner paying tax at the 45% additional rate could you take advantage of charitable donations reliefs or other planning opportunities to defer, reduce or eliminate the impact the 45% rate?
•Have you used your ISA allowance this year?
•Have you maximised your pension contributions?
