Interest Free Loans

It is common for owner managed businesses to receive loans either from the owner/director (Director’s Loan Accounts) or from related companies with common ownership. It is also normal for these loans to be provided “interest-free”. Although it may sound contradictory,...

Gifts and inheritance tax

How gifts can reduce your liability for inheritance tax. Inheritance tax (IHT) at 40% is due on the portion of a person’s estate that exceeds £325,000. This can be reduced to 36% if 10% (or more) of the estate is given to charity. Married couples and civil partners...

Personal tax planning

A guide to reducing an individual’s tax liability. The overriding aim of all personal tax planning is to legally reduce the amount of tax paid on an individual’s income. This income can come from a number of sources and the tax reduction strategies available will be...

Salary or dividend?

What’s the most tax-efficient way to pay yourself in 2016/17? Owner-managers and contractors often pay themselves in a combination of salaries, bonuses and dividends. A common strategy is to draw a salary of around £8,000 while also extracting profits from the...

Residence and domicile

A guide to understanding the terms residence and domicile as well as their legal and tax implications. A large part of a person’s legal identity is based upon where they live at any one time and how long they will be staying there. If you stay in the UK for a...

Year-End Tax Guide 2015/16

With 5 April fast approaching we consider some of the ways you might act now to reduce your current year’s tax liability. Contact us now to discuss your specific situation and the planning opportunities you could consider before the end of the tax year. This year end...