The start of the new tax year is an appropriate time to start thinking strategically if you want to make best use of tax allowances and rates.
By planning, you can ensure you’re drawing income as tax-efficiently as possible and keeping the amount of tax you pay to a minimum.
By including your spouse or partner in your planning, it’s possible to put together an effective strategy to provide you with a substantial joint, tax-free income.
Some things to start thinking about:
- Equalise your income with your spouse to make efficient use of allowances and income tax rate bands
- Transfer assets between you. Transferring shares means you can share out the dividends, but also on any sale, each utilise your annual CGT allowance.
- What is the best structure for your business in the year ahead – would you benefit from making a change now.
- Look at investing in ISA s and pensions – new year, new investment limits.
- MTD for Income Tax is just around the corner – use this year to plan ahead.