As the deadline for tax return submission is all but out of the way, this is a great time to look forward and start planning towards minimising your next tax bill by considering a few of the following options.
The period leading up to the end of the tax year on 5 April is one of the best times to review your taxes and finances and, in some cases, taking action prior to the end of the tax year will give even greater saving opportunities, so do not delay!
Good planning and careful timing are critical if you want to maximise tax reliefs or minimise the tax bill on a transaction or investment.
Now that the festivities are over and we look forward to the New Year I thought I should be a bit serious this month! I am sure that you are all aware that the filing deadline for your 2014 self assessment tax return is 31 January 2015. I am equally sure that none of you have left it to the last minute; and will not, therefore, be running around like a headless turkey trying to get all the information together that you put in a safe place, but cannot quite remember where that might be!
On the assumption that you are all up to date, over the next couple of months leading up to 5 April 2015 you should be thinking about whether there is anything that can be done to reduce your tax bill for the current year:
• If you have surplus funds to invest, have you used your new ISA allowances?
• Should you be making a contribution to your pension scheme?
• Assuming your business year end is 31 March:
- Are you thinking of investing in new assets? It should be beneficial to purchase these before the year end rather than just after, as this would advance the claim for capital allowances.
During December, HMRC launched their latest tax campaign and this time it is aimed at solicitors! The Solicitors Tax Campaign gives solicitors working in a partnership or company, or as an individual, the chance to tell HMRC about any income they haven’t declared.
Since 2007, HMRC campaigns have collected over £596 million in tax from people approaching them voluntarily together with a further £338 million from a large number of follow-up activities.