You met the Self -Assessment deadline of 31st January with ease and also paid your tax liability. However, you feel that perhaps you have paid too much tax?
Does this sound familiar?
If so, you are not alone. Here are a few of our tips for consideration during the current tax year to help mitigate the impact of your tax liability:
- Keep accurate records throughout the year, supported with management accounts, so you can easily identify your likely liability at the earliest opportunity
- Utilise your capital expenditure allowances on relevant purchases
- Review your dividend strategy (especially with changes from April 2016)
- Check that your tax code is accurate
- Use your partner / spouse tax allowance (e.g. Marriage allowance, partner / shareholder) where available
- Ensure that you have claimed all of your business expenses, even if paid personally for now
- Pay less tax on your savings and investments by taking advantage of ISA’s and Premium Bonds
- Review the use of a vehicle used for the business purposes (e.g. company car or expenses, Go green)
- Take advantage of any salary sacrifice schemes available to you (e.g. childcare vouchers)
- Consider your pension contributions
- Review the income you are taking from your business profits (if Limited)
- Where you trade through a limited company, review the level and method by which you take monies out