As we start a new tax year, with the recent tax changes that have come into force from the start of April 2023, many business owners are now looking at their budgets and revisiting their plans to ensure that they are taking proactive action to achieve the best results.
See our blog here for those Tax changes for 2023-24.
With the ending of the Capital Allowance Super deduction, there will always be timing implications that can be utilised when purchasing expensive equipment, such as reducing your profits to bring them down to below £50,000 to avoid Corporate tax at the marginal rate, or just reducing down your tax bill towards the end of your financial year.
With the lifetime allowance for pensions being currently abolished, and the maximum annual contribution rising from £40,000 to £60,000, there will be more business owners utilising this allowance, throughout the year rather than making a lump sum contribution, to ease cashflow, whilst still utlising the allowances.
As we are now in the new year, all of the individual allowances become reset:
- Personal Allowance for Income Tax £12,570
- Personal Allowance for Capital Gains Tax has reduced to £6,000
- Dividend Allowance has reduced to £1,000
- Personal Savings Allowance £1,000
- Rent a room allowances £7,500
If you haven’t already, its time to make some plans for this current fiscal year, to move you closer to your goals. Working with your accountant is one part of this, likewise working with a Independant Financial Advisor could also be key, with either of us holding you accountable to your plans.
If you require an introduction to a financial advisor, please contact us and we’ll be happy to put you in touch with one.
