Claim all of your allowable expenses

Ensure paid invoices have been recorded – chase those you’re still awaiting payment for

Keep receipts 6 years after accounting period

Trivial benefits – As a director of a limited company, you can receive up to £300 of trivial benefits in the year. These cannot exceed £50 and you are limited to 6 per annum

Use your ISA allowance

Remember that interest within ISA’s are not taxed, so ensure you use your ISA allowance of £20,000 per year  

£9,000 for junior ISAs (JISAs)

If you have a spouse / partner be sure to utilise their £20,000 allowance

Make contributions through your Limited Company for greater tax efficiency

You can pay up to £60,000 into a pension directly from your limited company. You may also be able to use unused allowances from previous years but best to check with a financial advisor. Company pension contributions can be a great way to save corporation tax but best to check with your Client Director to ensure they are treated as allowable expenses

Utilise your partner / spouse’s allowance

EXAMPLE: On the basis you take a salary of £9,100

£3,470 taxed at 0%

£500 dividend allowance taxed at 0%

The remaining £37,200 is then taxed at a rate of 8.75%

Use your allowance of £3,000 per year NOT per person

You can give gifts or money up to £3,000 to one person or split the £3,000 between multiple people

Carry forward any unused annual exemption into the next tax year for one year only

Avoid paying NICs by paying yourself a low salary, then ‘topping up’ with dividends

Reduce your company’s liability to Income Tax (including on Dividends) by diverting your company’s pre-tax profits into a company pension. Speak to a Financial Advisor for tailored pension advice

Any contributions must be made before your company’s financial year end to qualify for deduction. The funds must clear the company’s bank account in the year to qualify for the deduction

Consider paying bonuses to employees before the company year end to qualify for additional corporation tax relief. Ensure you speak to you Vantage Client Director to include this payment on your payroll  

Consider making investments before the year end (e.g. EIS, SEIS, VCT). Some allow carry back into a previous year and some others are restricted. Ensure you speak to a financial advisor, and your Vantage Client Director for tax advice