Tax Savings

If you are self-employed and your spouse helps with general administration, or any other role, it is entirely legitimate to pay your spouse a salary.

However, a few rules need to be followed, such as how much to pay your spouse and to keep evidence that the payments were made during the year.

Sole traders with higher rate tax liabilities will benefit significantly from this arrangement if their spouse is a non-taxpayer or lower rate taxpayer, and further tax savings could be made by making pension contributions.

It may be possible for a company to lend an employee up to £10,000 with no tax implications, provided they are not a director. This can be useful if the employee needs to buy his company car to avoid benefit in kind tax charges.

The stock should be valued at the cost but 'net realisable value' if this is a lower figure. Essentially this means valued at what you could sell the stock in an open market sale. So lowering the value of the closing stock will £ for £ reduce taxable profits.

Recover VAT on some invoices you have paid or received before registering for VAT by including the input VAT on your first return. Make sure you have the VAT invoices and keep a schedule of the adjustments you have made. Be careful, though; there are time limits and rules for this recovery measure, so be sure to speak with your accountant!

If you claim tax relief for using a room as an office, there can be a tax charge when you later sell your home; however, we can advise you of measures that can be taken to help minimise a Capital Gains Tax liability.

If you have Capital Gains Tax (CGT) to pay, for example, because you've sold a holiday home or rental property, you will need to complete a tax return. From April 2020, you must report and pay the CGT to HMRC within 30 days of completion. Top-Notch Accountants can advise you on any tax planning opportunities available to minimise your liability. We can also complete your tax return and 30-day report for you.