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Pre Year End Tax Planning

Pre Year End Tax Planning
With the tax year coming to a close in a month’s time, the time is now to take control of your taxes through effective and Bona fide planning.
 
Unfortunately too many people address tax planning when it is too late. So when is too late? 
The way we communicate it ”tax planning is undertaken IN the financial year, NOT after”.
 
In recent times, if you watch the news about government initiatives to crack down on various tax schemes you could be forgiven for thinking “tax planning” is a dirty phrase. The reality is however that there are still many ways in which to mitigate tax legally as long as you act at the right time.
 
So what planning can be done? 

It is important to mention that the options below wont suit everybody’s situation so it is important you get proper tax advice before undertaking any tax planning, but some options potentially available are;
 
Pension contributions – pensions can be very tax efficient, and this includes whether making contributions as a business or as an individual. As a company (if eligible) pension contributions are a tax deductible expense, and as an individual this can increase your income tax bands enabling more of your income to be taxed at a lower rate.
 
Capital expenditure – if you are thinking of investing as a business in fixed assets, why not potentially incurring that spend before your financial year end. That way you attract the tax relief a full twelve months earlier.
 
Remuneration – there are various ways in taking income from a business, including profits, salaries and dividends. Ensure your accountant has calculated the best solution for you.
 
Tax efficient investments – if you have cash to spare making certain investments can achieve additional tax relief for you, such as Venture Capital Trust and Enterprise Investment Schemes. To learn more please either speak with your financial advisor or contact us for a recommendation.
 
Above are just some of the legitimate ways in reducing your tax liabilities. To find the right solution for you please contact your accountant or if you would like us to help you then feel free to contact us on info@jamesstanley.co.uk or call us on 0121 706 8585.
 
Remember act now, don’t wait
 
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