Contents
Don't leave it to chance
Family tax planning
Tax payback - tax credits
Pay rise for the other half?
Jam today, or jam tomorrow?
Pension payments and tax relief
Employee pensions
Children's pensions?
Borrowings and tax
Investment limits
Employee cars and fuel
Give generously and save tax
Capital gains
Capital losses
Second homes
Company or trade?
Inheritance tax
Children's savings?
Business tax
Two jobs = too much NIC?
Should VAT be flat?
Mutiny and bounty
One careful owner
A matter of trust
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Since Gordon Brown increased NIC significantly on 6 April 2003, people have been looking closely at ways to reduce the impact. One way open to sole traders and partnerships is to form a company and pay out dividends instead of salary - dividends are still not subject to NIC. This is a complex decision, which should not be taken on tax grounds alone - many other factors have to be taken into account. In the 2004 Budget, some of the advantages for some small companies were reduced by increasing the rate of corporation tax paid where profits are extracted by way of dividends. The Chancellor has announced a review of the whole area of taxation of small businesses, and the position needs to be monitored both by those who have incorporated and those who are thinking about it. But even after the 2004 changes, the tax figures are definitely biased towards incorporation.
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© Bayar Hughes & Co., 2010.