Check The Amount Of Dividends You Have Paid Yourself This Tax Year
As you approach the end of the tax year it’s always worth checking the amount of dividends you have paid yourself so far. Familiarise yourself with the tax thresholds and see whether you are about to breach these thresholds.
It may be worth delaying your March dividends until after April 5th if you are about to breach these thresholds .
As of April 2018, the government are cutting the tax free dividend allowance from £5,000 to £2,000 – so it is worth bearing this in mind.
Make A Pension Contribution With Your Spare Cash
If there is any spare cash in your business, one of your options to reduce your tax is to make a pensions contribution.The government are taking steps, with the introduction of Auto-Enrolment, to ensure that people have a pension that will sustain them in the later years of their life. So take advantage of putting some of this spare cash into your pensions pot, and get a reduced tax bill to go with it.
Buy A New Electric Car
This is probably not the best tax saving tip if you don’t need a new car… But when your family is expanding or your old car has seen better days and you are in the market for one – consider going electric?
There are lots of benefits to an electric car – they’ll have less of an environmental impact, reduce your ongoing costs and save you tax.
With the high performing models that are on offer now, it’s well worth looking into!
Make Use Of Your ISA Allowance
Individual savings accounts give you interest on your savings that is tax-free. Each Tax Year you get a new ISA allowance – for the 17/18 tax year, this stands at £20,000 so make the most of it before it renews on 6th April 2018.
If you have a spouse, you can also pay into their ISA allowance. People forget to do this and end up paying more tax than they need to.
Selling Your Assets
If you have shares or a rental property, or any other asset that you’re thinking of selling – you might benefit from selling these assets before the end of the Tax year on April 5th 2018 to use your capital gains tax allowance.
Invest In Initiatives That Will Reduce Your Tax Bill
If you have any spare personal cash and are looking to invest in an initiative – then it’s worth checking out Enterprise Investment Schemes.
You can buy shares in small, private companies which helps to reduce your tax bill, and help a business to grow and expand. What’s more, is you’ll pay no capital gains tax on any profits you make from your investment.