Page 3 - Addition Autumn 2017
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TAX PLANNING FOR A
PROSPEROUS FUTURE
Effective business and personal tax planning can help to ensure a secure  nancial future for you and your business. Here we highlight some strategies to consider when reviewing your  nancial plans.
BUSINESS STRATEGIES
Review your business motoring
Changes to the taxable bene ts of company- owned vehicles has meant that, in many cases, it
is no longer a viable motoring strategy for many businesses. A review of your policy could reveal that paying employees the statutory mileage rate to travel in their own vehicles – particularly if their business mileage is high – is more tax-ef cient. Alternatively,
talk to us to  nd out more about the potential bene ts of a company van.
Claim your entitlements
Regular reviews of the allowances, deductions
and expenses that you
are entitled to could hold signi cant  nancial bene ts. For instance, the Annual Investment Allowance for businesses, and allowable expenses like of ce costs, travel costs, and even
some clothing for the self- employed, could result in
substantial tax relief.
Dividends or salary/bonus?
If you are an owner- director, you may wish to take dividends instead of
a salary/bonus. Despite changes to the dividends regime in 2016, receiving dividends rather than a salary/bonus may still result in a lower national insurance contributions (NIC) liability. For more information on the Dividend Tax Allowance get in touch with us.
Enterprise Investment Scheme (EIS), can reduce your taxable income,
but can also represent signi cant risks, and we’d recommend talking to a quali ed adviser before going ahead.
As your accountants, we can help you to implement effective tax planning strategies. For more information, please do not hesitate to contact us.
PERSONAL STRATEGIES
As well as business strategies, there are a number of ways you can reduce your personal exposure to tax. For example, in cases where one spouse is not earning it can be prudent to transfer income to make use of their personal allowance.
Increasing pensions contributions can have twofold bene ts. As well as helping to ensure you have
a comfortable retirement, relevant earnings of up to £40,000 (for those with an adjusted income of £150,000 or lower) can qualify for full tax relief when paid into a qualifying pension scheme.
Other forms of investment could also be considered. Making investments through speci ed investment schemes, such as the
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