As the end of the tax year approaches, taxpayers should review their personal and business tax arrangements. Our Accountants in Bolton can help to lessen the burden by managing your accounts for you so when the deadline arrives, you can sit back knowing all of your tax returns are up to date.
For both businesses and individuals, there are various tax reliefs, allowances and exemptions designed to promote saving and investment, innovation and entrepreneurship.
However, to benefit more fully, action may need to be taken before April 5. Further changes may also be announced in the Chancellor’s Budget Speech on March 8, 2017.
Just some of the specific items to consider before April 5 include using your capital gains tax annual exemption of £11,100 as this cannot be carried forward or transferred.
Use your inheritance tax annual exemption of £3,000. You may wish to consider the use of the prior year exemption if this has not already been utilised and the small gifts exemption of £250.
Ensure you have used your maximum ISA allowance of £15,240 or £4,080 for Junior ISAs.
Consider your capital expenditure requirements, to obtain the maximum benefit from the Annual Investment Allowance or First Year Allowance. Consider the timing of when income is received and expenditure incurred, and review the allocation of profits in the context of higher marginal income tax rates and capital gains tax rates.
Consider making pension contributions (using unused allowances from earlier years if available) to obtain tax relief and to place monies in a tax-favoured investment environment. Consider paying donations to charity under the Gift Aid Scheme, and consider the timing of dividends, given the changes which came into place during the year to the way they are taxed.
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