You might pay 20% Income Tax, but that doesn’t necessarily mean you’ll pay Capital Gains Tax at 18%. We’ve had two conversations with clients this week which highlighted a very common misunderstanding about Capital Gains Tax (CGT). Both clients were basic rate taxpayers for Income Tax and both assumed that, because they paid Income Tax
Tag Archives: tax planning
Tax Planning & Saving Tips, Year-End Preparation Tips
Closing Your Limited Company: Strike-Off or Members’ Voluntary Liquidation?
Thinking about closing your limited company? Perhaps you’re retiring, moving on to something new or simply no longer need your business. One of the biggest questions we get asked is: “How do I close my company and what happens to the money left in the bank?” If your company is solvent, meaning it can pay
Changes to Tax Rates & Thresholds, Tax Planning & Saving Tips
Is Your Estate Worth More Than £2 Million? The Inheritance Tax Trap You May Not Know About
Many people know that Inheritance Tax is normally charged at 40%. Far fewer realise that once an estate exceeds £2 million, another valuable Inheritance Tax allowance starts to disappear. This can mean that, for some estates, reducing the value by £1 can potentially save 60p in Inheritance Tax. What is the Residence Nil Rate Band?
Tax Planning & Saving Tips, Year-End Preparation Tips
Why didn’t my accountant tell me? Reactive vs proactive accounting explained
It’s a conversation we’ve had more than once over the years: “I wish I’d known that before the year-end.” “I didn’t realise there was a way to reduce my tax bill.” “Why didn’t my accountant tell me?” The truth is, your accountant probably wasn’t trying to keep secrets. More often than not, it comes down
Corporation Tax, Director’s Pay vs Dividends, Tax Planning & Saving Tips, Year-End Preparation Tips
So you want to take a dividend from your company?
Thinking about taking some money out of your limited company? Before you hit ‘transfer’, it’s worth understanding how dividends actually work — and what to check before you pay yourself. Dividends can be a brilliant, tax-efficient way to pay yourself as a business owner, but they come with a few rules and responsibilities. Let’s break
Director’s Pay vs Dividends, Tax Planning & Saving Tips
Why Alphabet Shares Could Be a Smart Move for Your Business
If you run a limited company, you might assume all shares are created equal. But that doesn’t have to be the case — and in many small businesses, it shouldn’t be. Creating different types of shares, known as alphabet shares (like A shares, B shares, C shares etc), can offer you flexibility, control, and some
Changes to Tax Rates & Thresholds, Self-Assessment/ Personal Tax
Understanding Inheritance Tax: A (hopefully) Simple Guide
Unfortunately, Inheritance Tax comes at a time when we are already having to cope with the grief of a lost loved one and having to think about this tax is a major stress to compound this. In addition, it’s a tax where some planning can be done via some simple measures if your loved one