Final Chance!
For the current tax year ending on 5 April the following tax breaks are available, some for the last time, so use them before the Budget on 23rd March.
Pension Contributions
The maximum amount you can contribute is £255,000 but after this date it falls to £50,000 per year.
ISA’s
The most you can invest in 2010/11 is £10,200 of which £5,100 can be in cash.
Company car fuel benefit
It may be worth repaying your employer for the private fuel it has been paying for you before 5 April. For instance if the CO2 of the car is medium rated at 25% you would be taxed on £4,500 at either 20% £900 or 40% £1,800.
If the actual private element of the fuel is much less than it will save you money.
Capital Gains
The capital gains tax annual allowance is £10,100 so if you sell say, shares you would not be taxed on the first £10,100 of any profit you make.
Dividend Splitting
If one spouse has much lower income than the other, you can transfer income producing assets such as shares in a company from the high earner to the other person so that the latter receives more in dividends and the former receives less.
If the high earner pays tax at 40% or 50% there will be considerable savings on the same amount of income.
Please Contact Us if you need us to help you take advantage of these breaks.