Income Tax Strategies

Reconsider your company car and fuel options – you need to consider the tax liability on your company car and fuel provided for private travel and the emissions of your next car, as well as options such as the current (until 2007) very favourable rules for company vans (including some luxury four and five seat pick ups) and running your own car and claiming business mileage. Either alternative may save you and your employer a considerable amount

Do not delay in sending us your business and personal records – claims for relief are often time sensitive. Unless we receive your records in good time, we may not be able to ensure that the best/right claims are made in time

For the over-65s, keep your income below the limit at which the age allowance is reduced – the higher allowances are scaled back if income exceeds £19,500. Consider income in ISAs and some National Savings products, which do not count as part of income for this purpose.

Watch your contributions – with the no-limit 1% national insurance contributions charge it is impossible to say how much the maximum NI contribution is this year, but if you are paying Class 1 contributions in more than one employment, or a combination of Class 1, 2 and 4 contributions, you might overpay. Refunds of excess contributions are not automatic – a claim must be made if you believe you might have overpaid. In some cases deferment can be claimed, subject to a ‘settling up’ after the end of the tax year.