Tax Year End Planning

With the 2024/25 tax year ending on 5th April, we wanted to share a few year-end planning pointers:

1. 1. Maximise Dividends Drawn Out of the Business
      Key levels are:
      • Ensuring you at least take the £500 tax-free allowance.
      • Drawing total income, made up of salary, benefits and dividends of up to £50,270 before hitting the higher rate threshold. The £50,000 limit increased to £60,000 for Child Benefit this tax year so no longer applies.
      
      
   2. Pension Contributions
      Maximising the £60,000 allowance (if applicable) through company or personal contributions. Remember:
      • You can roll back up to three years if there is capacity to do so, and you have been a member of a registered scheme.
      • If you earn between £100,000 and £125,140, making a personal contribution can save tax of 60%.
      
      
   3. Capital Gains Allowance
      The capital gains allowance is £3,000 from 6th April 2024 so it maybe worthwhile talking to your financial advisor to make sure that you have maximised this allowance.
   
   
   4. Mileage
      If you use your personal vehicle for business or property management, have you recorded your mileage for the 2024/25 tax year and reimbursed yourself from your business account?
   
   
   5. Maximising your Trivial Benefits
      Directors of a close company can have up to £300 per tax year in trivial benefits. It is a ‘use it or lose it’ allowance. You can find out more about these here.
   
   
   6. Watch our Tax Saving Webinar You can find our favourite ways to save tax here. This webinar is based on 2022/23 Tax Rates so please get in touch before taking any action.