The annual employment allowance allows companies with PAYE employees to reclaim the first £3,000 of employers national insurance in each tax year.
Limited companies can make contributions to directors/employees’ personal pensions, claiming the amount of the payment as a corporation tax deduction.
Married couples can shift income/gains between each individual to ensure that lower rates and annual tax free allowances are utilised.
Companies and individuals can offset historic losses against future profits/earnings.
Where company directors carry out work from home, a home office allocation can be calculated, allowing the company to cover part of the running costs of the property.
Directors that pay their life insurance policy through their limited company will not only receive a corporation tax deduction for the contributions, but also avoid having to pay the policy out of taxed personal income.
Mileage can be claimed at 45p per mile for the first 10,000 business miles travelled in a tax year, falling to 25p per mile after this. Where an employee cycles for work, mileage at 20p per mile can be claimed for all business miles.
It is possible to obtain tax relief on work related expenses that have not been reimbursed by the employer, or mileage where the employer pays below HMRC’s allowed rates.
There is an annual capital gains tax free allowance of £12,000 and with careful planning this can be better utilised.
Under inheritance tax rules, an individual can gift £3,000 tax free each year. Unlimited gifts of £250 can also be made to any individual each tax year.
It is possible to offset self-employment losses against PAYE income in the same tax year.
Higher rate taxpayers can claim gift aid relief to recover the difference between the rate of tax paid and the basic rate already claimed.
Staff entertainment is a tax-deductible expense in certain circumstances.
Shareholders of limited companies are entitled to entrepreneurs relief which allows them to dispose of their businesses and pay capital gains tax at a reduced rate of 10%.
Innovative companies in almost any industry can claim research and development tax credits to obtain tax relief up to 33p for every £1 of qualifying expenditure.
Paying a basic salary between £6,136 and £8,632 per annum ensures that employees receive credit for making national insurance contributions, without actually having to make them.
Interest relief on buy to let mortgages is being restricted for individuals meaning by 2021 only a basic rate deduction of 20% will be allowable. Higher rate taxpayers can still receive full interest relief by purchasing property via a limited company.
The marriage allowance allows you to transfer £1,250 of your personal allowance to your partner each tax year.
Businesses can take advantage of the annual investment allowance, which has temporarily increased to £1m and gives them the opportunity to claim 100% capital allowances on qualifying capital purchases each tax year
Child tax credits are available for families where both parents do not earn more than £50,000 per annum.
Utilising an ISA allows £20,000 per annum to be saved each tax year and can be invested in cash and/or shares with all income received tax free.
The first £2,000 of dividends per individual each year are tax free and importantly can be declared prior to payment being made.
Investing in shares of an SEIS/EIS qualifying company allows taxpayers to receive 50%/30% of their investment back in tax relief in the year of purchase.
Rent a room relief allows you to earn up to £7,500 per annum tax free from letting out a room in your main residence.
The savings allowance means that basic rate taxpayers can earn interest income of £1,000 per annum tax free, whilst for higher rate taxpayers this reduces to £500.