12 Tax Tips to Easter – #1 Beat the Tax Band

top-tax-tip1The run-up to the tax year end on 5 April 2016 is the perfect time to consider tax planning opportunities and to put in place strategies to minimise tax throughout 2016/17.

Good planning and careful timing are critical if you want to maximise tax reliefs or minimise the tax bill on a transaction or investment, and to avoid falling foul of the system of penalties and interest levied by HM Revenue & Customs (HMRC).

With some prior preparation, you could arrange your financial affairs to minimise the impact of tax on you, your family and your business. So here are our 12 tax tips to Easter starting with our tip #1 – Beat the tax band.

#1 Beat the tax band

Income over £150,000 per annum is taxed at 45% and, even worse, as you start to lose your personal allowance at £100,000 your income between £100,000 and £121,200 is taxed at an eye watering effective top tax rate of 60%!

To avoid this you can reduce your taxable income to below these income limits.

  • Consider making pension contributions or payments to charities, these will reduce your taxable income.
  • Consider transferring income yielding assets to your spouse or civil partner who may pay tax at a lower rate or pay no tax at all.
  • Self-employed trading losses in your business can be set against current or previous year income to maximise relief.

Tax is a complex matter, so we recommend that professional advice is sought when considering any of the above. Our highly qualified and experienced tax team would be happy to discuss your tax affairs with you.

If you have any questions regarding your tax affairs, please do not hesitate to contact our tax team on 01491 579740.