Our latest guides will help ensure your clients are utilising all available reliefs and allowances to maximise tax efficiency.
The self-assessment deadline is behind us, notwithstanding the fact that there will still be some late filings in the month of February – but thanks to the feedback from various members and ACCA’s efforts on behalf of members, HMRC extended the time for when automatic late filing penalties will be charged to the end of February.
Looking ahead, practitioners should be planning for the end of the tax year and ensuring clients are utilising all available reliefs and allowances to maximise tax efficiency. Do have a look at our other article on end of year planning in this issue.
Below are some quick guides to assist with capital gains, salary and dividend planning and loss reliefs. The guides can be re-purposed to your business headings and should serve as a quick resource for basic tax planning around these areas.
Personal and business capital gains are treated differently, depending on whether you are self-employed (as a sole trader or in a partnership) or trade as a limited company
Capital gains for limited companies and unincorporated associations (eg clubs and co-operatives) are dealt with through corporation tax and are referred to as chargeable gains. The total chargeable gains are included in the corporation tax return and taxed along with your business profits, using the corporation tax rate (rather than a separate capital gains tax)
Corporation tax reliefs and allowances help you to minimise your corporation tax liability. It's worth understanding the different ways in which the annual investment allowance, other capital allowances and allowable expenses are treated
We explain the basics in deciding between paying yourself salary or awarding dividends from your limited company for the tax year. Your personal circumstances will dictate the exact levels and if your finances are complicated you should seek professional advice.
We will continue to bring more guides for you in the coming months so please look out for these.
