DOs and DON’Ts to save Tax in 2019THE 16 DOs & DON’Ts
DO use everyone’s Income Tax DON’T waste the Savings
Allowance Allowance
The first £11,850 of income is For most people the first £1k of
tax free – can any income interest is tax free -move savings
be transferred to your spouse? to a spouse to use this allowance.
DO make a donation to charity DON’T lose your Pension
Allowance
Higher rate taxpayers should Use the annual £40,000
do so before 5th April as it will allowance– if unclaimed for
save at least 20% tax this year. 3 years it is lost forever.
DO make a pension payment DON’T lose your Child Benefit
Payments made should lead to Starts to be lost at £50k of income.
a tax refund of 20% for higher rate Make pension payments/donations
payers but could be more. to reduce income – thus less of the
Companies would save corporation of the tax free benefit is lost.
tax on pension payments made
for directors.
DO use your Capital Gains DON’T lose your ISA Allowance
Tax Allowance
To use this £11,700 tax free allowance, Use (or lose) the annual £20,000
you could sell some shares before allowance. May be worth moving
5th April before buying any cash ISA’s elsewhere to get a
the shares back in say a month’s time. better return?
DO use your Lifetime ISA Allowance DON’T wait to buy equipment / van
if under 40
You can put £4,000 a year To get the tax relief this year the
into a Lifetime ISA – any equipment/ van must be bought
payments are topped up by a 25% before the year end.
bonus from HMRC.
DO make a ‘negligible value’ claim DON’T be hit by the interest
restriction
Include the loss made on any failed Landlords can avoid this (thus
company shares (eg Carillion) on your saving tax) by reducing their income
tax return – it could save you capital. (eg pension payments) or by selling /
gains tax in the future transferring a property or two.
Do put your children on the payroll DON’T put off business
expenditure
If they’re helping in your business, Spending the cash before the year
then pay them – what they receive end will mean you save the tax and
is likely to be tax free AND your improve your cashflow this year.
business saves tax at the same time.
DO use all your Dividend Allowance DON’T lose Married Couples
Allowance
If dividends are more than £2k (which Basic rate taxpayers can give 10%
is dividend tax free) then move shares of their Income Tax Allowance to their
(eg to a spouse) OR change Investment spouse saving £237 in tax. If unused you
portfolio to use this tax free allowance. can also claim for last 2 years.
As always, if you’re not sure on anything and would like a chat over a coffee, please get in touch NOW on: 0161 410 0023
or email David@kmaaccountancy.co.uk and we’ll be happy to help you.
Disclaimer
The 16 DOs and DON’Ts is designed to alert you to some of the major issues you should be considering and especially before 5th April 2018. It is not a replacement for professional advice tailored to your precise needs and circumstances. It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate it cannot be precisely tailored to your personal circumstances. Whilst we endeavour to ensure that the information contained in the article and attachments is correct, no liability will be accepted by KMA Accountancy which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.
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