As the new tax year approaches and some radical changes come into force it may be worthwhile considering whether you need to do anything to mitigate your future tax liabilities.

1. For those of you in the upper echelons of income earning, the new 50% tax rate will have a huge effect. Simply speaking the raise in tax is by 25% (10% added over 40% – we can all play the % game) so anything that you can do to avoide the increase will be of immense value. Convert income to capital, receive income early, defer income until later years when a more lenient tax regime is in place are all tactics that can have a beneficial effect for a small outlay.

2. Incorporate your business. For those sole traders and partnerships earning over £15,000 incorporation can often reduce the overall tax and NI bill without a huge increase in compliance costs.

3. Plan capital expenditure. If you are anticipating spending over £50,000 on new plant and equipment, spend £50k now and £50k after the 6 April and get the benefit of 100% capital allowances on the whole amount.

All these point need detailed planning. Give us a call now to avoid last minute chaos.