With the cost of living continuing to increase and more contractors finding themselves becoming higher or even additional rate taxpayers, it is more important than ever to consider the ways in which you might reduce your personal tax burden - and that of your family overall.
Simple measures such as ensuring family members make full use of their personal allowances and transferring ownership of income generating assets to those who pay tax at the lowest rate will help.
Did you know tax relief is available on all qualifying gift aid donations, by way of a reduction to the amount of tax payable at the higher and additional rates of income tax?
Are you making the most of any tax efficient investments available to you? There are several ways and methods of investing your money with a mind on mitigating your tax liability;
- Individual savings accounts (ISAs) are perhaps the simplest method of investing your money in a tax efficient environment.
- Did you know that individuals who have invested the maximum amount in an ISA each year since their introduction, could now be receiving tax free income and gains on an investment of over £87,000?
- Venture capital trusts (VCTs) and enterprise investment schemes (EIS) also offer various tax related benefits for investors.
- Perhaps the most common of all tax efficient investments is the pension fund. The rules on VCTs, EIS and pensions can be complex however, and individuals are advised to seek further advice before making any significant investment decisions.
PayStream's Personal Tax Team are happy to assist you and look for ways to reduce your overall tax burden, giving you that added peace of mind. Visit here for more information on how our Tax Team can help you.