Are you minimising your Ltd company’s tax?

Tax PlanningThe end of the tax year is just a few weeks away and my accountant, Simon Witcomb, suggested a few tax planning ideas you might like to consider before it’s too late:

Make full use of the basic rate tax band

If you own a limited company, it is necessary to declare and pay dividends before 5 April 2015, in order to make full use of the basic rate tax band. You can always loan the money back to the company if you do not need it.

Consider the EIS

If you have excess funds in your company, it is possible to pay yourself a dividend, incurring higher rate tax, but using the Enterprise Investment Scheme to recover the tax over four years.

Bring capital expenditure forward

If you are already planning capital expenditure or major revenue expenditure, it is best to incur the cost before the end of your business’s financial year end, so the that tax relief is received as soon as possible.

Top up your pension fund

A contribution to a pension fund will reduce higher rate tax.

If you’ve any other ideas for tax planning we’d love to hear them