Don’t be Paranoid about saving tax!

paranoid-300x180Despite all the “bad press” for multinational companies and high profile individuals in recent months, the fact remains that every individual in the UK has the right to certain tax exemptions and allowances which will help reduce their individual tax bills and in my opinion each one of us should take full advantage of these!

Let’s face it times are tough enough as they are so why should we pay any more tax, in whatever form, than we legally have to?

With the end of the tax year fast approaching this may be a timely reminder for you to consider such matters as:-
a) Are you drawing sufficient income from your business to cover your personal allowance for the current tax year of £8,105
b) Will you draw sufficient income to use up your basic rate band for Income tax at 20%? You can have income totalling £42,475 in the year to 5th April 2013 before you will pay any higher rate tax.
c) Have you utilised your annual Capital Gains Tax exemption which amounts to £10,600?  Any gains made up to this amount will be completely free of Capital Gains Tax, which is charged at 18% or 28 % depending on your level of income
d) Have you made use of your annual gifts exemption of £3,000 for inheritance tax purposes?
e) Have you made the maximum advantage of your Cash ISA entitlement of £5,460 or stocks and shares ISA with a maximum contribution of £11,280!

All of the above are totally legitimate and above board and in my view it is foolish not to take advantage of them if you are able to do so.

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