The last 12 months have been a period of unprecedented change, which has seen the appointment and dismissal of several Prime Ministers and Chancellors.
With this has come an ever-changing landscape of taxation but as we start to look towards the new tax year in April, there are some immediate actions that must be taken now to make the most of lower rates of taxation and soon-to-be abolished tax reliefs in the current fiscal year.
If you do not plan ahead now, you might miss out on many tax-saving opportunities and end up paying more tax than is required.
Tax planning for businesses
For those running a business, the amount of tax paid will always be directly linked to the amount of net profit you have earned.
Effective tax planning can ensure you have the capital needed to invest in and grow your business. In the next year, business owners need to consider:
- A reduction to the R&D tax relief schemes for SMEs and whether to bring expenditure into the current tax year.
- The increase in Corporation Tax from April 1 2023 and whether profits or losses need to be moved between financial years
- The end of the Super Deduction on March 31 and how businesses can use this effectively
- Ensuring that any withdrawals from the business are made in the most tax-efficient way.
- Structuring shareholdings and borrowings correctly.
The importance of tax planning for individuals
With many personal tax allowances and exemptions effectively frozen now until 2028, taxpayers need to take a longer-term view of their finances, particularly as inflation drags them into higher tax bands.
You should take advantage of the current allowances and tax-saving opportunities available to you by:
- Boosting your pension.
- Disposing of shares and assets tax efficiently.
- Making the most of dividends.
- Maximising the use of allowances, reliefs and exemptions.
- Using discounted Gift Trusts/AIM Investments.
- Utilising tax-efficient investments, including VCTs and EISs.
- Reducing Inheritance Tax liabilities through wills and estate planning.
- Bringing forward gains into the current tax year before the current exemption is cut in half on April 6 2023.
Ready to guide you
Don’t be left with a shock next year. Take the time now to reduce your liabilities before the year ends and ahead of the changes to tax allowances and rates.
At Lamont Pridmore, we help our clients reduce their tax bills by maximising the opportunities available to them – helping them to save more than £8 million last year alone.
Our approach relies on good housekeeping to ensure you can legally claim the allowances and reliefs you are entitled to and that you’ve considered the tax implications of every major decision.
Get in touch today to find out how we can help and request a free copy of our 10 Tips to Reduce Your Tax Bill by calling 0800 234 6978 or emailing [email protected]
