This is a new edition for the 2009/2010 tax year of a bestseller that provides a wealth of tax-saving advice from H M Williams Chartered Accountants. The measures the authors include in this updated edition are all legitimate ways to help reduce your tax bill - by avoiding tax rather than evading it. It includes money-saving tax advice relating to: low-income earners; high-income earners; pensioners; employees; employers; company cars; running a business; National Insurance; capital gains tax; Inheritance Tax; overseas aspects; pensions; property; savings; charitable giving; and, marriage and children.
Table of Contents
Table of Contents: About the authors vii 1 General principles 1 Put commercial considerations first 2 Working Tax Credits 2 Child Tax Credits 2 Use an accountant 3 Pay tax on time 3 The fundamentals of tax planning 3 Attributes needed by a tax planner 4 How to be a tax planner 5 2 For those with low incomes 7 Become a foster carer 8 Claim tax back on any interest you receive 8 3 For those with high incomes 11 The Enterprise Investment Scheme (EIS) 12 Venture Capital Trusts (VCTs) 13 Community Investment Tax Relief 14 Maximise pension contributions 14 What income is free from tax? 15 Pension contributions and the over 50s 17 4 For married couples 19 Equalise your incomes 20 Pay your spouse to work in your business 20 Tax and civil partners 21 5 For employees 23 Claim a flat-rate expense allowance 24 Professional subscriptions 27 Claim incidental expenses when travelling on business 27 Claim expenses against your employment income 28 Claim for the use of your home as an office 29 Submit your Tax Return on time 29 Join the company pension scheme 30 When losing your job 30 Would you pay less tax if you went self-employed? 30 Moving because of your job? 33 6 For employers 35 Short-term employment contracts 36 Share schemes 36 File your PAYE Return online 38 Tax-free benefits you can give to employees 39 7 Company cars 41 Vans have some tax-saving attractions 42 Company cars 42 Claim approved mileage allowance payments for your car 44 Avoid the fuel tax charge 45 Own your own car rather than using your employer's 45 8 For those running their own business 47 Travelling expenses 48 Limited companies 48 Introduce goodwill to create a large director's loan account and pay very little tax 50 Don't automatically reclaim VAT on fuel 50 The flat-rate VAT scheme 51 National Insurance 51 Claiming First Year Allowances 52 The tax advantages of converting commercial property into residential use 52 The benefit of short-life assets 53 Use your business's losses 53 Have you claimed for all your business expenses? 54 Farmers and averaging 54 Partnerships 56 Claiming tax relief on interest 57 9 National Insurance 59 It may be advisable for a married woman to pay NI contributions, even though she doesn't have to 60 Get a state pension forecast well before retirement age 60 Don't pay too much National Insurance 60 10 Capital Gains Tax 61 Make use of the annual Capital Gains Tax exemption (1) 62 Make use of the annual Capital Gains Tax exemption (2) 62 Don't overlook claiming relief for shares that are now worthless 63 Taper relief 63 Assets you can sell without incurring Capital Gains Tax 64 Suggestions for investments with tax advantages 65 It can be a good idea to crystallise capital gains if there is going to be no tax to pay 66 Claim rollover relief 66 Time your sales to defer payment of Capital Gains Tax 67 Reduce or eliminate Capital Gains Tax on a second home 67 11 Inheritance Tax 69 Check up to see what your Inheritance Tax is likely to be 70 What gifts are exempt from Inheritance Tax? 71 Inheritance Tax business/agricultural property relief 72 Don't leave everything to your wife - use the tax-free band carefully 72 12 Overseas aspects 73 Can you save tax by going abroad? 74 13 When someone dies 81 Don't overpay Inheritance Tax on assets that are sold 82 Remember to claim full probate costs when someone dies 82 Capital Gains Tax and Inheritance Tax considerations 82 14 Pensions 85 Take out a pension 86 You may be able to take out a pension even if you are not earning 86 15 Property 87 Rent a room 88 VAT and rent 88 Capital gains from the sale of property 89 Have you claimed for all the expenses you can? 89 Claim the interest on any loan you take out to buy the property 89 Do you and your wife jointly own the property? 92 Forestry 92 16 Savings 93 Remember to claim back tax deducted from deposit interest 94 ISAs and investments 94 Premium savings bonds 94 17 Charitable giving 97 Gift Aid 98 Charities 98 18 Marriage and children 99 Give children assets when they are not worth very much 100 What are the best investments for children? 100 Plan separation and divorce carefully 101 19 And finally... 103 Free HMRC explanatory pamphlets - a good source of tax information 104 Tax planning dos 111 Tax planning don'ts 112 20 A summary 113 Employees, employers and company directors 114 Those moving house or changing jobs 116 Those who are about to retire or who have retired 116 The self-employed 117 Personal taxpayers, both rich and poor 120 Children 122 Capital Gains Tax planning 122 Inheritance Tax planning 124 Appendix 127 Index 129
H.M. Williams Chartered Accountants are previous winners of the prestigious Butterworth Tolley Award for best small to medium UK Tax Team. It has won the coveted 'Daily Telegraph'/Energis national customer service award in the small professional and business services category. In 2004, it reached the last three in the national Accountancy Age Awards for the UK's best small accountancy practice.