How to reduce your tax bill
With only a month to go before the new tax year starts, award-winning 360 Chartered Accountants are reminding people what they can do over the next few weeks to reduce their next tax bill.
Andy Steele, Director at 360, says:
“Nobody likes to pay tax and we all think we pay too much tax, but it’s something the majority of us has to do. But there are still some things we can look at to mitigate your tax payment for the year ending 5th April 2019.”
360’s Tax specialist Jayne Hussey wants people to check whether they’ve used up all of their allowances and exemptions. Here are some of the things she suggests:
- Have you used your full ISA allowance?
- Capital Gains Annual Tax Exemption – if you don’t use it you lose it.
- Consider making another Pension Contribution.
- If you are a sole trader or in a partnership, investing in plant machinery equipment before the year end means you can claim capital allowances on these investments which will reduce your liability.
- Make charitable donations – as well as being incredibly generous, these reduce your gross income giving money to good causes rather than HMRC with the effect of additional tax relief for higher rate taxpayers.
- Invest in a new car, tools, computer or other business-essential equipment – you’ll get tax relief much sooner if you buy before the year end rather than wait for the start of your new year.
- Submitting your tax return by 30 December 2019 will allow for tax liabilities under £3000 to be collected via your tax code, if employed. This may also prevent payments on account being required where tax is paid up front for the following year.
- Are you making full use of your marriage allowance? If you are a ‘Basic Rate’ taxpayer and your spouse/civil partner is not fully utilising their Personal Allowance, a transfer of Marriage Allowance is available of £1,190 saving the higher earner £238 in tax.
- You can also look at Investing in EIS/VCT/SEIS schemes which offer tax relief and capital gains tax deferral relief.
If you would like help mitigating your next tax bill, the 360 tax team is on hand to help. For more information or to contact 360 Chartered Accountants, call 01482 427360 or email firstname.lastname@example.org or head to www.360accountants.co.uk