‘When renting out residential property, it’s important to retain a record of the original purchase date and cost, any expenses such as LBTT or SDLT and any legal fees.
Invoices covering any amounts you have spent enhancing the value of the property should also be kept, failure to do so could increase your capital gains tax liability in the event of a sale.’
“Are you a limited company ?
Have you been seeking to innovate a product or process in the past two years?
If you answered ‘yes’ to both of these questions, you could be eligible for valuable R&D tax credits.”
‘Tax is a significant cost for all businesses, whether it be PAYE, VAT, income tax or corporation tax, it requires management.
Up to date, accurate management accounts will allow for better management and forecasting of these amounts.’
“With the new IR35 rules having been published, now is the time to consider your employment status.
There may be ramifications for many ‘one man band’ limited companies so planning may be required to secure your future status.”
“Unfortunately tax enquiries can be random and inadvertently target businesses with no tax issues, potentially costing thousands in professional fees to defend.
Your accountant should be offering you fee protection insurance to mitigate this cost.”
“Have you taken ownership of your own pension scheme? Doing so can open up all sorts of possibilities to generate returns.
Pension contributions are highly tax efficient and remember there is no capital gains tax within pension schemes, a potentially valuable planning opportunity.”
“Larger international groups of companies need to be aware of the relatively new corporate interest restriction rules.
Companies that may be affected must ensure they have assessed the impact of the changes and complied with reporting obligations to avoid unexpected tax liabilities and penalties.”
“With income tax rates of up to 46%, using your Capital Gains Tax annual exemption of £11,700 as an “income replacement” can be great planning.
In conjunction with your investment advisors, determine whether tax free capital gains can be secured to supplement your income.”
“With careful planning, and utilisation of reliefs and allowances available, there are ways to mitigate capital gains tax liabilities.
If you are intending on making a capital disposal, discuss this with your tax advisor in advance to ensure that the disposal is carried out as tax efficiently as possible.”
“Personal tax payments are due on 31 January and 31 July, and are typically based on what happened in the prior year.
If you have a major change in circumstances such as falling profits, cessation of business or pension contributions, then consider speaking to your tax advisor about whether these can be reduced.”