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.

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.

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.

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.

Dividends declared

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

If you would like to talk further give me a call

Liz McCormick

McCormick Accounting Limited

07814 661727