Enquiries

Name

Invalid Input
Phone

Invalid Input
Email

Invalid email address
Enquiry Type

Invalid Input
Comments

Invalid Input
Enter Code
Enter Code

Invalid Input




QTT – Pensioners can maximise use of their allowances!

All pensioners may be able to consider investing in savings products with capital growth rather than income producing, in order to maximise use of their allowances.

Pensioners who are married or civil partners may be able to reorganise their investments between themselves to save tax. Where at least one spouse is aged over 65 they may be able to ensure that the one over 65 has personal income less than the age related abatement limit currently £20,900. Where one spouse was born prior to 6 April 1935 or earlier then the situation becomes a little less straightforward. However it may still be possible to organise their investments between them to reduce their annual tax bills. Financial advice should be sought prior to taking any action. 

QTT – Shattering the tax myths – Putting savings in children’s names saves tax.


Tax myths are creating problems in an already confusing tax system. In each edition we will unravel a well known tax myth and give you the truth. The myth for this edition is that “you can escape tax on savings by giving money to your children to invest”. 

Unfortunately this is not totally true. Each individual is entitled to a personal allowance, however old they are. Up to this level (currently £5,225) the child’s income is tax free.

However if a parent gives money to a child and the interest earned exceeds £100 per annum, then the interest is taxed upon the parent and not the child. Interestingly this problem does not arise for gifts from other relatives, such as grandparents.

If parents are to pass monies to their children, then to avoid the problem the monies can be invested in capital growth investments. The capital growth is taxed upon the children and they are entitled to the same annual exemption for Capital Gains Tax as anyone else (currently £9,200).

QTT – Have you considered claiming tax credits?


You may think that your income is too high. However if you have a child under 16 you may wish to consider making a claim even if your income exceeds the top limit (around £58,000 if child over 1 year old). If your circumstances change during the year and your income drops then you can amend your claim to cover the full year. However if no claim has previously been made then you can only back date the new claim for up to 3 months. You would no doubt wish to weigh this up against the reported problems people seem to have dealing with the tax credit office.

QTT – Are you renting property out?

If you are renting property out and have to regularly visit the premises, perhaps to carry out inspections, repairs, collecting rent, or any other work that your management agent does not carry out, then you could claim for the journeys made. HM Revenue and Customs will allow a mileage allowance to be claimed against the rental income, providing mileage records are maintained.

QTT – Are you thinking of emigrating?


As the weather turns cold, many people start to think of moving to warmer climates. If you are planning to live abroad then advice should be taken before you leave. The advice can cover things such as your income and selling your assets. For example, if you do intend to live abroad for at least 5 complete tax years then you may be able to avoid UK capital gains tax on gains while you are abroad. The timing of gains and leaving the UK are quite important, as will be the number of days you subsequently visit the UK. If you are thinking about leaving then please contact us in advance to discuss things further.  

QTT – Seasonal wishes to employees!


Employees normally pay tax on any gifts they receive, and the employer pays National Insurance Contributions, however there is neither tax nor national insurance (at the discretion of HM Revenue & Customs) on what they term “trivial gifts”. Unfortunately, there is no definition of trivial but Revenue manuals do include examples of a turkey, bottle of wine, or a box of chocolates. The manual does go on not to rule out larger gifts (such as a Christmas hamper or case of wine), but the cost and contents are to be considered objectively when deciding whether trivial or not.


HOP – Save tax on taking money out of your company!


Extracting profits from the company tax efficiently is a big issue for many business owners, whether the business is large or small. Without careful planning many business owners will simply pay too much tax. 

We can perform a review of your company and personal circumstances, and clearly demonstrate the possible tax savings under various options.  Not only can we compare the traditional bonus versus dividend strategies for your situation, but also more advanced strategies that can result in very significant tax savings. We can also establish the most tax efficient combination for your particular circumstances. Please contact us if you are interested in finding out how you can enjoy significant tax savings on extracting monies from your company.