Here are a few things to consider as we embark on the next tax year:
- Check that you are applying the correct minimum wage and that you are complying with the criteria for younger workers and
- If you are a company, how will the new Corporation Tax rates affect you. Remember that if you have more than one company, this could impact your rate.
- If you are a company, review how you extract profits, given that you may now be able to get tax relief in the company for salaries, pensions etc at 26.5%.
- If you are a sole trader, start to think about the next tax year (2024/25) which will be the traditional year to the new MTD for self-assessment. Will you change your accounting year end to coincide with the tax year at 31 March (or 5 April) 2025.
- Is it time to bring new members into the family business, either your spouse or adult children to spread the profits and minimise the impact of the freeze on income tax rate bands.
- With the new tax year you now have a new Capital Gains Annual Allowance. How will you use it?
- Do you need to plan for how to make use of unused and otherwise wasted personal allowances for members of your family.
- Consider tax efficient ways of supporting children going away to college or university later this year.
