Resources

Top 10 Tax Planning Tips

07/05/2009

1. INCOME SPLITTING

Spouses and civil partners can still divide dividend income from companies to best tax advantage, which may become even more vital as tax rates rise.

2. INCORPORATION 

The ability to control the amount and nature of income from your business can save you large sums of tax. Should your sole trade or partnership trade as a company?

3. ENHANCED LOSS CARRY BACK

Make sure that, if you make losses, they fall into periods where they can be carried back 3 years instead of one.

4. CARS AND CAPITAL ALLOWANCES

The new regime puts a premium on private use vehicles and low emissions. Have you planned to maximise the benefits of the new regime?

5. VAT PLANNING

How do you take maximum advantage of the current 15% rate without triggering the forestalling provisions? Would cash accounting or the flat rate scheme be of benefit?

6. FURNISHED HOLIDAY LETTINGS

How should you plan for the end of the favourable tax regime in April 2010, and take maximum advantage of the remaining year of that regime?

7. TAX-EFFICIENT BENEFITS

Have you considered childcare vouchers, mobile phones and bicycles as benefits for your staff? Perhaps you should.

8. ENHANCED CAPITAL ALLOWANCES

Are you specifying or refurbishing a building? Do you know what ‘green’ technologies you could get full upfront tax relief on, or cash from the taxman?

9. RESEARCH & DEVELOPMENT

Are you developing a new product or application? Would you be eligible to claim 175% tax relief for your expenditure, or a cash payment from the taxman?

10. ENTERPRISE MANAGEMENT INCENTIVE SCHEMES

Do you need a tax-efficient way to give incentives to key directors or employees, using share options in a highly tax-efficient way?