The 2014-15 tax year finishes midnight, 5 April 2015. There are a number of tax planning opportunities that need to be considered before this date. Only a few weeks to go. If you have not already done so we recommend you speak with your professional advisor without delay.
Who should be concerned?
Tax year end planning should be considered by:
• Anyone in business
• Individuals who are paying income tax at the 40% or 45% rate, and
• Individuals with multiple sources of taxable income.
All tax payers in these groups should consider their tax planning options before 6 April 2015.
What should you consider?
It is beyond the scope of this blog posting to cover all the planning issues that may be of benefit. The following list is for general information only. The strategies outlined may or may not benefit your situation as everyone’s circumstances are unique. There is no substitute for a conversation with your tax advisor.
1. High income earners should consider options to reduce their income for tax purposes in 2014-15. For example, if your income exceeds £100,000 you will not only be paying income tax at 40%, but you will suffer a reduction in your personal tax allowance. There are a number of strategies you could consider to avoid this.
2. If you are in business, and your accounting year end coincides with the tax year end, generally 31 March 2015, there are a number of timing issues to consider:
a. Are you planning a significant capital purchase (equipment etc) that would qualify for the 100% write off by claiming under the Annual Investment Allowance? Would the expenditure win you more tax relief by being delayed until after 31 March?
b. In a similar vein, should you defer significant revenue expenditure?
3. If your business is incorporated what is the best way to extract profits in order to minimise corporation tax for your company and income tax for shareholders and directors?
Once the 5 April deadline passes numerous planning opportunities lapse. Please call if you would like to discuss strategies that may benefit your tax position.