How to save tax:
Some of the ways is to avoid wasting your personal allowance :
The level of personal allowances (tax free income) have increased significantly over the last two years, and are expected to increase again in 2012/13 to at least £8,105 per person.
This is a good time to look forward to 2012/13 and assess who will be earning what in your family.
This allowance cannot be transferred between family members, so if some people in your family are earning less than this, their personal allowance is going to waste.
You may avoid wastage of the personal allowance by considering the following:
1. Taking on a family member as a partner in your business, so they can share some of the profits.
2. Employing your spouse or children in your business, perhaps on a part-time basis.
3.Transferring an income-producing asset, such as a let property or savings account into the name of the lower earning spouse.
4. Ensuring the higher earner makes all the Gift Aid donations to charities from the family.
These changes should be made as soon as possible to gain the maximum advantage in 2012/13. They need to be implemented correctly so please contact us for advice before proceeding.
The Government plans to withdraw child benefit in 2013 from parents where either person pays tax at 40% or higher. To retain your child benefit (worth at least £1,055 per year) you need to ensure your taxable income is below the 40% threshold, which will be set at £34,370 after allowances for 2012/13.
The Mighty 10% rule: give 10% services/goods free.We have set up these pages where businesses can advertise free and provide free tips every Monday.
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