Was 2013/14 a good tax year? There are still planning opportunities available to reduce your tax bills
As the current tax year rapidly draws to a close have you considered all the opportunities that are still available to you to reduce your tax bill?
Personal income tax
Are you paying tax at the highest rates of 40% or 45% or are you earning over £100,000 and forfeiting your personal allowance?
- As a business owner you could consider delaying a bonus or deferring income.
- You can extend your basic rate band by making a donation to charity.
- Consider making use of a tax efficient spouse for example transferring income generating assets and using the tax free personal allowance for 2013/14 of £9,440.
- Making a pension contribution should save you tax at the higher rate.
- The annual investment allowance remains at £250,000 until 31 December 2014 which means that capital expenditure can be extremely tax efficient for a business owner.