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- A No Bull Podcast
- Accounting & Finance Expertise
- ACCOUNTING ADVISORY
- Advisory
- Alice Stephenson – Founder & CEO, Stephenson Law
- All News
- ALLSTARS EARLY CAREER PROGRAMMES
- APPRENTICES
- April Bembridge – Chief People Officer, Cooper Parry
- Are You Claiming The Right Amount? Gated
- AUDIT – WHAT OUR CLIENTS SAY
- Audit and Assurance
- AUDIT FOR AIM LISTED COMPANIES
- B CORP
- Bundle and Pricing Options
- BUSINESS SERVICES INSIGHTS
- BUSINESS STRUCTURING
- Business Support And Grants
- Business Tax
- CAPITAL ALLOWANCES
- CAPITAL GAINS TAX
- Careers – Our Roles
- Careers Contact Us
- Careers Trainees FAQs
- Charities
- Construction And Property
- Contact Thank You
- Contact Us
- COOKIE POLICY
- Cooper Parry Book Club
- Cooper Parry Event
- CORPORATE AUDIT
- Corporate Finance
- Corporate Finance – What Our Clients Say
- CORPORATE FINANCE DEALS
- Corporate Finance News & Insights
- Corporate Social Responsibility
- Covid-19 Collaboration-news
- CP Futures
- CP Innovation
- CP INNOVATION – WHAT OUR CLIENTS SAY
- CP INNOVATION FULL PAGE. – DRAFT
- CP Tech 100
- CPERS: COOPER PARRY ENQUIRY RESOLUTION SERVICE
- Creative Tax Reliefs
- CULTURE
- DIVERSITY POLICY
- Early Stage To SME- WHAT OUR CLIENTS SAY
- Ecommerce
- Eddie Latham & PJ Scott – Co-founders, Velocity Commerce
- Education
- EMPLOYMENT TAX
- FAQS
- Financial Reporting
- Find Us
- Flexible ‘Finance Bench’
- Future Events
- Galahad Clark – Founder VivoBarefoot
- GLOBAL TALENT PROGRAMME
- GRADUATES
- HEALTHCARE INSIGHTS
- Helena Hills – Founder & CEO, TrueStart
- HIGH GROWTH LOW DOWN
- Homepage
- Homepage
- Hub CP
- HUB CP – Live Lounge
- HUB CP – Live Lounge Velocity Snippets
- HUB CP – Rob Law Trunki Snippets
- Hub CP 3
- HUB CP LEADERSHIP SERIES
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- HUB CP LOUNGE – PAUL SCHAFFER, PLUM PRODUCTS
- Hub CP Podcast
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- Impact Beyond Business
- Impact Beyond Business New template
- In Their Words
- In Their Words Retail
- INDIRECT TAX
- Inheritance Tax
- Intellectual Property & Patent Box
- INTERNATIONAL TAX
- Investment Calculator UK
- James Hyde – Founder & CEO, James and James
- Jay Richards & Cat Agostinho – Co-Founders, Imagen
- Justin Harling – CEO, CAE Technology Services
- LANDLORD
- LEGAL STUFF
- Let’s Stop Calling It R&D V2 Gated
- Life at cooper parry
- Lounge Underwear Webcast
- MAKING TAX DIGITAL
- Management Information and Reporting
- MANAGING AGENTS
- Manufacturing Tax and Advisory
- Marketing Thank You
- MID MARKET – WHAT OUR CLIENTS SAY
- Mid-Market
- New Hub CP
- New Hub CP Live Lounge
- Newsletter Form
- Newsletter Thank You
- NFP Webcasts And More
- Not For Profit Audit
- Operational Systems & Technology
- Our People
- Meet the Team
- Meet the Team Retail
- Our People – Big Business
- Our People – Board
- Our People – Business Tax
- Our People – Capital Allowances
- Our People – Corporate Finance
- Our People – CP Innovation
- Our People – Facilities & Wellbeing
- Our People – Leadership
- Our People – Marketing
- Our People – New Business Relationships
- Our People – Not for Profit
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- Our People – Service Charge
- Our People – Tech & High Growth
- Our People – Tech & Platforms
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- Our People – Transaction Tax
- Our People – VAT
- Our People – Wealth
- Our People Audit
- Our People Team
- Our Why And Values
- Outsourcing
- OVERSEAS EXPANSION
- Past Events
- Paul Richardson – Executive Chairman, Gymshark
- Paul Turton – CEO, Pact Coffee
- PENSIONS AUDIT
- Personal Tax
- Personal Tax Compliance
- PLACEMENTS
- Preference Centre
- PRIVACY POLICY
- Private Equity Advisory
- PROPERTY AND LANDLORDS
- R&D Capital Allowances
- R&D Newsletter Thank You
- R&D Tax Credits Questionnaire: Are you eligible?
- Raise investment or debt
- Raising Finance
- Read All About It
- Rebelution 2
- Rebelution 2 Top Tips – Cooper Parry Corporate Finance
- Rebelution 2 Top Tips – Cooper Parry IT
- Rebelution 2 Top Tips – Cooper Parry Wealth
- Rebelution 2 Top Tips – CP Futures
- Rebelution 2 Top Tips – VAT & Brexit
- Research & Development Tax Credits
- Research And Development Tax Credits
- RESIDENCE & DOMICILE ADVICE
- Retail
- Retail Advisory
- Retail Tax
- Rob Law MBE – Founder, Trunki
- Scale Up & High Growth
- SECURITY POLICY
- Service Charge
- Service Test
- SETTING UP BUSINESS IN THE UK
- SHARE INCENTIVES AND REWARD
- Share incentives: Annual Reporting
- SHAREHOLDER TAX ADVICE
- Shaun Doak – CEO, React Group Plc
- Small Business
- SNAPSHOT
- Succession Planning
- Supporting start ups
- SUSTAINABILITY
- Tax – What our clients say
- TAX COMPLIANCE SERVICES
- Tax Services
- TAX SETTLEMENTS AND INVESTIGATIONS
- Tech & High Growth
- Tech & High Growth – What our clients say
- TEN STAGES TO INVESTMENT
- TEN STAGES TO SALE
- Test2
- This Is Us
- Tom and Tina Warner – Co-Founders, Warner’s Distillery
- Transaction Deals
- Transaction Services
- Transaction Services – What Our Clients Say
- TRANSACTION TAX
- TRANSFER PRICING
- Trusts and Estates
- UK support for International groups
- VAT SERVICES
- Virtual Bookkeeping
- Virtual FD
- Wealth
- Wealth- What Our Clients Say
- Website How To Guide
- Welcome to the CP Family
- What our clients say
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You want to make sure you’re doing all you can to reduce your tax bill. We’ll put money on it. But with the year-end looming, you’d be forgiven for feeling a tad under prepared when it comes to getting on top of your tax.
Taking advantage of all the reliefs available and implementing some key planning strategies takes hours of research and lots of technical knowledge, right?… Wrong.
That’s where our top tips come in – they’re a step by step guide through some of our best bits of advice. Have a read through, and if you have any questions don’t hesitate to get in touch.
Income Tax
- • If your income is between £11,851 and £46,350, you’ll be taxed at the basic rate of 20% (dividends 7.5%).
- • If you earn between £46,351 and £150,000, you’re in the higher tax band which means you’ll pay 40% tax (dividends 32.5%).
- • Your personal allowance is reduced by £1 for every £2 of income above £100,000. This means there’s no personal allowance when income exceeds £123,700 – but check out our top tips below to find out how you might get it back.
- • For earnings over £150,000 you will be taxed at the additional rate of 45% (dividends 38.1%).
Our Top Tips:
- • The personal savings allowance grants £1,000 of tax-free savings income to basic rate taxpayers. For higher rate taxpayers this figure is £500. Additional rate taxpayers don’t receive this allowance, so if you can, make sure you use it.
- • The £2,000 dividend tax allowance is available for all taxpayers. Amounts falling within this allowance are taxed at 0%. Make the most of it.
- • You can transfer income producing assets to a spouse or civil partner to make sure you’re both using all the available allowances. This is also useful if they’re taxed at a lower rate.
- • Reduce your higher tax rate liability by reducing your taxable income. This can be done by making payments to a pension plan, making donations to charities under ‘Gift Aid’ or converting income into non-taxable forms. This can result in great savings if your income is between £50,000 and £60,000 and you get child benefit, or if you are above £100,000 and losing your personal allowance.
- • Where possible, claim capital allowances when you buy assets that you use in your business. This annual investment allowance (AIA) increased from £200,000 to £1,000,000 in January 2019.
Capital Gains Tax
- • This is a tax on any profit you make when you sell an asset that has increased in value.
- • For 2018/19 you may make gains of £11,700 tax-free. This exemption cannot be carried forward into the next financial year.
Our Top Tips:
- • If you haven’t used your annual exemption think about selling assets before 6th April 2019.
- • Make sure you’re utilising your spouse or civil partners’ annual exemption by transferring assets to them before selling them.
- • Entrepreneurs’ Relief is available on the first £10m of an individual’s lifetime qualifying gains. This can mean that capital gains tax is due at 10% rather than 20% but you need to check that this is the case.
- • If you own a second home, or a holiday home, you can decide which property is treated as your primary residence, and therefore which property is exempt from Capital Gains Tax. Plan this carefully as the exemption of a gain on one residence means the gain on the other becomes chargeable. You must elect your main residence within two years of purchasing the second one.
Pensions & Investments
- • You can pay up to £40,000 a year into a pension scheme. Unused allowances from the last 3 years can be used if you were a member of a qualifying pension scheme.
Our Top Tips:
- • Make sure you review your allowances. The £40,000 allowance is reduced by £1 for every £2 of an individual’s total income over £150,000. If your income exceeds £210,000, you have a £10,000 allowance plus any unused allowances from the last 3 years.
- • The Lifetime Allowance is the amount of money you can hold in pension schemes without facing penalty tax charges when you take pension benefits. For 2018/19 this figure is £1.03m – so make sure you check if your pension pot is at or around this number.
- • Take advantage of your ISA allowance, which is currently £20,000.
- • If you’re aged 18-40 you can open a Lifetime ISA and put in up to £4,000 a year until you’re 50. The government will add a 25% tax-free bonus to these savings, up to a maximum of £1,000 a year. This £4,000 counts towards your £20,000 annual ISA limit.
- • Consider investing in schemes or shares such as Enterprise Investment Schemes (EIS), Seed EIS (SEIS) or Venture Capital Trusts (VCTs). These investments offer upfront income tax relief, but can carry higher risk, so get in touch with us to discuss the best option for you.
Inheritance Tax
- • Inheritance Tax (IHT) is charged at 40% on the part of your estate (property, money and possessions) that’s above the £325,000 nil rate band (NRB).
Our Top Tips:
- • Make regular gifts out of your after-tax income. You can give up to £3,000 each tax year, and if this amount is unused it carries forward for one year. These gifts can be exempt from IHT as soon as they are made.
- • Make a will – dying without one may increase tax and mean that assets are not distributed as you wished.
- • Review the size of your estate and your will to make sure you benefit from the Residence Nil Rate Band. This is an additional amount up to £125,000 available on top of the individual NRB where the deceased has left a residence to his or her direct descendants.
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