Personal Tax Planning Strategies

We help a large number of people with their personal tax planning.

The issues we cover are:

• Using your personal tax reliefs fully;
• Benefits in kind vs salary;
• Pension contributions to reduce your tax liability;
• Minimising capital gains tax.

We can calculate your potential tax liability under a whole range of options:

• Salary vs dividends;
• Employing your partner/spouse in the business;
• Unincorporated vs Limited Company.

Similarly we can review your investment and savings strategy to take advantage of all tax breaks and consider tax-exempt savings products.

Other issues to consider when reviewing your best personal tax strategy are:

• The tax aspects of your home;
• Making a Will and inheritance tax planning;
• Child tax credit and working tax credit; and
• Any other allowances and reliefs you may be entitled to.

Here’s a summary of three key issues you should think about from your own perspective:

1. Use your personal tax reliefs

• Capital and income can normally be transferred between husband and wife without any tax liabilities.  Such transfers must be outright gifts and can be made free of both capital gains tax and inheritance tax;
• You could pay your husband/wife/children a salary for working in your business;
• You might consider taking your husband/wife into partnership;
• You can give one-off or recurring donations to charity.

2. Benefits in kind

• Keep full records of all business trips showing the date, mileage, and purpose of trip to satisfy Inland Revenue queries;
• Consider reimbursing your employer for the full cost of private petrol to prevent the car fuel charge applying;
• Consider employee loans – no tax is charged on beneficial loans totalling less than £5,000 per employee.

3. Pensions

• You should check pension arrangements to ensure they are adequate;
• Employees in a company scheme may consider paying additional voluntary contributions to help boost their final pension, or may consider contributing to a stakeholder (or similar) pension.

If you would like to discuss your options or have a more 'in-depth' discussion, feel free to call on 0845 201 1582 or e-mail info@thewowcompany.com