Tax Saving Tips

Charity

The new gift aid arrangements enable a one-off payment to a charity of any sum to qualify for tax relief. We can give full details of the scheme and also of how to gift shares to a charity which can be even more tax efficient.

Equipment

The date you contract to buy new equipment for your business normally governs the easiest tax year for which capital allowances can be claimed. It is often worth signing a purchase contract just before, rather than just after, your business year end.

Sole Trader

If you're in business, as a sole trader or in partnership, you can maximize tax relief by carefully structuring your borrowings.

CGT

Since CGT is payable on 31 January following the end of the tax year, if you dispose of an asset on 6 April rather than 5 April, you will have a year longer to pay the tax.

Tax Planning

A regular review of your tax planning and your will is essential to ensure they meet your current circumstances and that potential tax liabilities are minimized.

Bed & Breakfast

Remember that the tax treatment of 'bed and breakfast' deals changed with effect from 17 March 1998. There are alternatives which continue to be effective, but also consider the loss of taper relief.

Dividend Income

With the abolition, from 6 April 1999, of repayments of tax credits on dividends to non-taxpayers, and the introduction of the new tax regime for dividend income, individual investors and trustees should take advice on possible changes to investment strategy.

Company Car

Replacing the company car with a car mileage payment that would allow employees to use their own car on business could result in considerable tax savings for the employee and significantly reduced costs for the employer.

Classic Car

Consider a classic car - with benefits based, in most cases, on the original list price of the car there can be considerable savings for both employer and employee.

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