Year end shopping list
• Use allowances
• Rate changes
• Review company car
• Prepare for 2013/14 changes
• Look to the future
• HMRC protection
Make sure you use any available allowances and reliefs and don’t lose
any unnecessarily. The personal allowance is £8,105, this starts to be
removed when your income exceeds £100,000. So consider whether it
is possible to limit your income below this amount.
The higher rate of tax is to be reduced from 50% to 45% from April
2013. This rate relates to income in excess of £150,000. Therefore it is
worth considering deferring income beyond April 2013 where possible.
This could be done in a number of ways including changing accounting
year end for self employed individuals. If you have made a loss in the
year it is also necessary to consider this as soon as possible to ensure
that tax relief and any refund can be made quickly.
Review company car
The taxation of company cars becomes more and more prohibitive each
year with the exception perhaps of hybrid or zero emission vehicles
which can benefit from 100% offset against tax for the company in the
year of purchase. It is worth considering the merits of retaining a
vehicle as a company car on a regular basis.
Prepare for the 2013/14 changes
Real time information for payroll will dramatically change the way
virtually all payrolls will have to operate from April 2013. Have you
considered how it will impact upon you?
The rules regarding what is required to be UK and not UK resident are
also changing from April 2013. If these might affect you these changes
must be reviewed.
Look to the future
Whilst you have planned to make your day-to-day tax position have you
considered your longer term strategy for your business sale, retirement
planning, inheritance tax protection
The tax authorities are carrying out more focused reviews and attacks
on industries and sectors. These come in the form of business records
checks and full scale enquiries. If your business has a significant
proportion of cash transactions you should review your record keeping
arrangements before HMRC. Specific reviews into property disposals
have also been announced.
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