With the new 2024-25 tax year about to start on 6 April, now is an opportune time to take stock of your finances and consider how you might wish to adjust your planning for the new tax year.
Effective tax planning, where various means of maximising allowances and minimising liabilities are examined across a broad spectrum of taxation, can result in considerable benefits for you and your business. This is particularly pertinent in light of the annual changes to many of these taxes and allowances, as announced in the Chancellor’s Budget each year.
Many SME businesses can benefit from tax savings that come with the right planning. Areas that can be examined include remuneration packages, the extraction of profits, dividend planning and options around additional pension contributions. Business owners may also look at different options when it comes to their workforce. Whether there are 2 employees or 200 employees, a myriad of employee benefit schemes are available.
Limited company owners need to understand how any changes in corporation tax and capital allowances rules may impact their company’s tax liability. They might also wish to consider whether the company undertakes any research and development work and could therefore benefit from making a Research and Development tax credit claim.
From an individual’s perspective, pensions, Gift Aid contributions, investing in tax advantaged schemes, or using a transferable personal allowance can all lead to a reduction in tax. A regularreview of their inheritance tax and capital gains tax situation depending on their personal circumstances might also be of benefit.
This is only a snapshot of some of the key considerations for preparing for the 2024-25 tax year. Many businesses will differ in terms of their own circumstances and trading environments, but all businesses can benefit from diligent tax planning that leads to enhanced cashflow and profitability.
For information you can contact any member of the GMcG Tax Team
For GMcG’s analysis of the impact of key announcements in the upcoming Chancellor’s Budget Forecast, or for a copy of our 2024-2025 Tax Rates datacard, visit our publications page after 6 March HERE
