There are several tax saving steps, to help mitigate your tax liabilities for the tax year 5th April 2018. However, you should act now before the end of the tax year for many of the suggestions below. Individuals – Income Tax Bring forward income to use up your Personal Allowance £11,500 (17/18). Investing into a pension scheme. Paying £80 into …
What are Trivial Benefits?
Employees and Office holders can be provided with trivial benefits. These are not subject to Income Tax or National Insurance on the employee, whilst the employer can also obtain tax relief and reclaim (if registered) any VAT on the items purchased. In order for an expense to be able to be classed as a trivial benefit it must meet the …
Private pension tax relief
There was much speculation prior to the budget last month, that the tax relief for higher rate tax payers was going to be scrapped, or reduced. Many pundits were expecting a flat-rate tax deduction of 33% rather than tax relief for higher rate taxpayers of 40%. Fortunately, for those who may have been affected by a reduction, this change was …
Company capital gains relief is frozen
Before the Autumn Budget, the capital gains tax (CGT) calculations of companies included a relief called the indexation allowance. Basically, this allowed a company to increase the acquisition cost of an asset by the annual rate of inflation. Without this relief, any CGT payable on the sale of the asset would increase. Instead of deducting the cost plus the inflation …