Making sure you take full advantage of tax reliefs & allowances can make a significant difference to your disposable income. That's why Monix trawls through the UK tax system for its clients to come up with tax planning strageties that is tailored to you.
There's quite a range of schemes available for business or personal tax, such as:
- contributing to a pension - there are many schemes available for a pension. In regard to obtaining tax relief, this is an effective way of reducing your tax liability as pension contributions will reduce corporation tax for the company; individuals can save on income tax & national insurance.
- incorporation
- not only are there personal liability advantages, there are also significant tax savings that can be made for a sole trader who is earning circa £25,000 or above, should they choose to form a Ltd company. This is usually done by splitting your income through a salary and receiving dividends (the timing of which can attract more savings).
- overpayment relief
- some individuals may find they have paid tax for items which they were entitled to claim tax relief such as professional subscriptions, costs of refresher training or claiming a portion of your household bills if you work from home.
- salary sacrifice - is another effective way of attracting tax relief, used mainly in tangent with pension contributions but can also be used with tax efficient company benefits.
- tax free allowances - planned correctly, the basic tax allowances can bring significant tax relief by utilizing the allowance for income tax, savings and dividends.
- loss relief
- if you made a trading loss in recent years, you can carry the loss forward against the profits of future years. Trade losses can usually be claim against income, profits from the same trade or income from a company that you have transferred your trade.
- rent-a-room - there is a potential £7,500 tax-free allowance available under this scheme. If your expenses our less than this amount it would advantageous to claim the reflief.
To discuss these & other schemes available why not
reach out to us.