MARCH TIPS FOR TAX SAVINGS

5 weeks to the end of the tax year and 5 top tips:

Need any capital items

Buy the items in March, you will then be able to deduct them from your profits to the year end 5 April 2020 and see the benefit in your tax return in January 2021.

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Pension Contributions

Look at your total income as at the end of February. Are you likely to go over £50,000? A pension contribution will mean that you may not go into higher rates.

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ISA topped up

Tax efficient saving with an annual limit of £20,000. Have you used it all? March is the time to assess whether you can add any more to it for this year.

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Child benefit claim

Are you going to exceed the £50,000 income limit? If so the child benefit received will have to be repaid at a rate of £1 for every £100 you have earned over £50,000.

is this likely to be the case in 2020-2021? If so now is the time to let HMRC know.

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Dividends declared

If you are running as a limited company have you declared your £2000 of dividends which will be taxed at nil?

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If you would like to talk further give me a call

Liz McCormick

McCormick Accounting Limited

07814 661727