Top 10 Tax Planning Tips for 2014

Top 10 Tips
As we approach the end of the 2013/14 tax year, sensible tax planning is an essential tool in making the most of your finances and helping your business’s profitability.

Keeping your tax bill to a minimum is not a matter of aggressive or complex tax schemes, but rather of identifying which of the many tax reliefs and allowances specifically granted by law are available to you. of your finances and helping your business’s profitability.

From ISAs to capital allowances, here are ten top tips of saving tax (the majority of which can be done before 5 April 2014) – for you, your family and your business.

1)    Maximise personal allowances

Ensure that you are making the most of the tax-free personal allowance (PA), which for 2013/14 is £9,440 for those aged under 65.

2)    Pay into a pension scheme

Investing in a company or personal pension scheme will afford tax breaks on your personal pension contributions.

3)    Use your capital gains tax (CGT) allowance

Make the most of your CGT exemption limit each year (£10,900 in 2013/14).

4)    Invest in an ISA

Up to £11,520 can be invested in an ISA this tax year, of which up to £5,760 can be invested in cash.

5)    Make charitable donations under Gift Aid

If you are a higher rate tax payer then make sure all your charitable donations are under Gift Aid so that you obtain additional tax relief.

6)    Review your business structure

The structure of your business can have a significant impact on your annual tax bills.

7)    Review your capital expenditure

Review your capital expenditure to maximise claims for capital allowances.

8)    Rent out a room

Under the ‘rent a room’ scheme, income from letting furnished rooms in your main residence is exempt from tax if the gross annual rent does not exceed £4,250.

9)    Write a Will and keep it up-to-date

A well-drafted Will can ensure that the wealth you have built up during your lifetime benefits the right people on your death – and it can also be structured to save tax.

10)    Utilise inheritance tax (IHT) exemptions

You should make the best use of IHT allowances, including the annual exemption, which allows you to give away cash or assets up to a total value of £3,000 a year without incurring any taxes.

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What do you need to do next?

If you think any of these tips could benefit you get in touch with our Tax team to discuss your requirements or call us on 0161 249 5040