How to maximise your tax efficiency before tax yearend 5 April 2023
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
Use your ISA allowance
£20,000 taxed at 0% 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 £40,000 taxed at 0% into your pension per year from your Limited Company
Carry forward any unused allowance for the past three years
Utilise your partner / spouse’s allowance
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
Other cost saving measures
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.
Any contributions must be made before your company’s financial year end to qualify for deduction.
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