We provide our clients with regular updates on changes in taxation regulation, news from the world of accounting and, of course, information about the latest developments at Chartax Accountancy.
Tax Tips 2013/14
Good tax planning is essential from the very beginning of a new tax year. We are now in the 2013/14 tax year which runs from 6 April 2013 to 5 April 2014. Taking action early in the tax year can often enhance the tax savings that would be made by leaving tax planning until the last minute.
Tax Tip - 1: Personal Allowances
Unless you earn over £100,000, all individuals are entitled to a certain tax-free amount of income, referred to as the ‘personal allowance’. Allowances for the current tax year are as follows:
Born after 5 April 1948 £9,440
Born after 5 April 1938 but before 6 April 1948 £10,500
Born before 6 April 1938 £10,660
It is important to check that any PAYE coding notices received from HMRC correspond to these allowances with any adjustments made reflecting your own personal circumstances. It is also important to check that pay slips match the PAYE coding notice.
Tax Tip - 2: Individual Savings Accounts (ISA)
If you have spare cash then Individual Savings Accounts (ISAs) are a good tax efficient investment. Each individual gets an annual allowance for investing in ISAs, with the allowance for the 2013/14 tax year being £11,520. This amount can be invested entirely in stocks and shares or split 50/50 between a cash ISA and a stocks and shares ISA. The full amount cannot be invested in cash and so the cash element of an ISA is restricted to £5,760. Interest and dividends earned on ISA investments are income tax-free and gains made on the sale of ISA investments are capital gains tax free.
If you have the cash handy now then it may be worth utilizing this allowance as early as possible in the tax year to maximise the tax savings.
Tax Tip - 3 : Child Trust Funds and Junior ISAs (JISAs)
On the subject of saving, if you have children under the age of 18 you can invest in either Child Trust Funds (CTF) or Junior ISAs (JISA) depending on when they were born. If the child was born between 1 September 2002 and 2 January 2011 you can invest in a CTF and if the child was born before 1
Keep watching our site for more tips, we update regularly.
HMRC has announced that the relaxation of PAYE reporting arrangements for smaller business has been extended to April 2014. Smaller businesses are reminded that this relaxation does not mean that they do not need to file in real time at all until the relaxation ends; they are required to report PAYE at least once a month until the end of the relaxation.
For further details please contact us for expert advice to avoid possible penalties and fines.
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