Quick Guide to Minimise Tax for Year-end Accounts

Quick Guide to Minimise Tax for Year-end Accounts

This quick guide will detail some financial tactics that could minimise your tax at year-end accounts. An accountant should be consulted to ensure proper planning has been put in place so that full advantage of these tactics can be gained before year-end.

Dividends have Changed

Dividend tax has changed so if you normally draw a dividend you will have to amend your income and dividend proportion. A dividend of up to £5,000 can be drawn without any tax being charged. However, any dividend drawn over £5,000 will have a 7.5 percent tax imposed. By investing in an ISA with a personal allowance of £20,000 a year, is a sound financial investment to consider with the dividend tax change.

Selling a business with Entrepreneur Relief

When selling a business, the use of entrepreneur relief is an efficient method to retain any profits from the sale of your business.

Capital Allowance to Reduce Tax

Capital Allowance can be claimed on assets such as substantial equipment, IT equipment, fixtures & fittings and company cars.

Applying Research and Development Relief

Applying Research and Development Relief allows your company a relief for investing in research and development. The tax relief that can be claimed is a deduction in tax or a cash payment from HMRC.

Investing in Social Projects

Investing in social projects will allow investors to receive a tax relief of up to 30 percent which will decrease tax owed.

Using Business Funds

Using the many business funds available is a great way for start-ups and new small businesses to get help. Note that there are also funds available for research and development as well.

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