Tax Saving Advice[list style="2"]
- If you buy a property up to the value of £125,000, you do not have to pay stamp duty land tax of 2%, which will save you up to £2,500 in tax. You could spend this on other related costs of purchase.
- If your annual earnings are between £11,850 and £46,350 you are paying £130 less in income tax from 6 April 2018 after the announcement of the budget.
- If your annual income is between £46,350 and £150000 you could be better off setting up a limited company as you could save tax by paying 19% corporation tax rather than 40% income tax.
- If you rent a room in your own house and your annual income from this is less than £7,500 you do not have to pay any tax.
- You do not have to register for vat if your annual turnover is less than £85,000.
- You can deregister from vat if your turnover has reduced due to any reason below £83,000 per annum.
- If you sell a business your effective tax rate for capital gains tax could be 18% instead of 28% if you claim Entrepreneurs Relief.
- First £11,700 gain on asset sales is exempt capital gains tax.
- You could invest £20,000 tax free in an ISA.
- You could be taxed on gifts inherited above certain limits.
- National insurance contribution rates have increased in the budget. To find out how this will effect you please get in touch with us….
- You could benefit from reducing your tax liability if you invest in new machinery or equipment in your business. To find out more please contact us…