While the effects of the recession on cash flow and business profitability are on the minds of many the pending tax year end on 5 April 2010 provides an opportunity to ensure that your liability for the 2009/10 tax year is no greater than necessary. With further tax increases on the horizon there really is no time like the present to take a step back and look at how you are managing your personal finances and your business, and consider how you might reduce your taxes and/or improve your financial and business strategies.
In this year end tax guide we consider some of the ways you might act now to help achieve a more secure future for you, your family and your business. Please call us now to discuss your specific situation and the planning opportunities you could consider before the end of the tax year. Acting now could pay dividends in the future.
Act now to save money
Effective planning requires time and consideration, but with our help, you could significantly reduce your business and personal tax burdens.
In some areas the opportunity to save tax this year does not differ greatly from previous tax years. Tax planning includes taking advantage of allowances and exemptions including deductions for pension contributions and capital allowances. But the 2009 Budget brought forward tax increases and the ongoing reform of the tax system means that paying close attention to tax planning is more important than ever before.
This tax year is in effect the ‘eye of the storm’ in which wholesale changes to the tax system come at us from all sides. The process started in 2005 with the formation of HM Revenue & Customs (HMRC) and since then the tax authority has been working on new powers to modernise the administration of the tax system. A significant amount of that new law has come into force this year, with more to come in the next few years.
At the same time, the current economic climate has prompted tax changes designed to provide some support for businesses during the recession, but it seems clear that some taxpayers will be digging quite a lot deeper into their pockets in future years to replace lost Government revenues.
With so many changes afoot, taxpayers should be particularly careful to make sure they appreciate the impact any present and future changes might have on them.
Remember – tax planning is best done before the event, so please don’t hesitate to contact us should you need assistance or support.