The latest Federation of Business survey has revealed that small firms in all sectors are buoyant about the prospects for trade for the final quarter of 2014. Businesses are taking on staff which is a tremendous sign of confidence in the future of our economy. The Scottish Referendum is now behind us with the United Kingdom still intact (just) but we are now in General Election countdown to May 2015. The battle between the politics of “Smaller Government and Lower Taxes” versus “Larger Government and Higher Taxes” has already started and we face six month months of uncertainty until the result is known.
In my opinion we should all be utilising whatever tax opportunities are currently available before the end of this tax year. Buy now while stocks last, be it business investment in capital expenditure or personal extraction of profits by way of Pension Contributions.
Remember it’s always tax efficient to pay dividends rather than salary and I recommend businesses consider voting dividends to utilise current tax band limits of 40% on personal income up to £150,000.
Please contact me on 0161 832 4451 for further assistance with any of our tax planning opportunities.