Standard tax planning actions as the financial year draws to an end

As we approach the end of the financial year, there are some standard tax planning actions, which you might like to consider:

1. If you own a limited company, it is necessary to declare and pay dividends before 5 April 2015, in order to make full use of the basic rate tax band.  You can always loan the money back to the company if you do not need it.

2. If you have excess funds in your company, it is possible to pay yourself a dividend, incurring higher rate tax, but using the Enterprise Investment Scheme to recover the tax over four years.

3. If you are already planning capital expenditure or major revenue expenditure, it is best to incur the cost before the end of your business’s financial year end, so the that tax relief is received as soon as possible.

4. A contribution to a pension fund will reduce higher rate tax.

Please let us know if you think these could apply to you, and you would like more information.

Kai Tang

The EB Partnership, Apsley House, 176 Upper Richmond Road, London, SW15 2SH