As the new tax year begins so with it new tax savings rules and the potential to make more income in 2015/16 as the UK economy moves further away from the recession.
The personal tax free allowance rises from £10,000 to £10,600 per annum and for those born before 6 April 1938 its £10,660. And married couples not using their entire tax free allowance can transfer some tax saving to their partner to help him/her save tax on their tax bill. Make sure to employ a good tax accountant (like Tax Affinity Accountants) that will take this into account as it could mean moving across up to £1060 in tax free allowance in the year.
With the BOE base rate interest rate staying at a record 0.5% for the entire term of the current coalition government. Making any substantial gain on savings is relatively small.
The ISA savings rate has grown to £15,000 per annum tax free but with rates of return at around 2.2% i.e. £330 profit (yes that really is it!). So any real entrepreneur worth his/her salt would never be happy with such low returns.
So what should a UK entrepreneur be doing then? Well the word on the street is ‘expand and grow’ to take full advantage of the economic growth predicted in 2015/16 (2.5% Real GDP). This means plan ahead now and start making changes now, take full advantage of the optimistic uplift in consumer confidence after the general election on 7th May 2015 and the follow through of huge world cup sporting events, falling oil prices and UK growth leading London and the South East regions.
If your business is in property then development is the real boom currently, buying a distressed property or expanding and renovate to a high standard of finish is the where the real money is in property. With older properties, with real potential, being snapped up by developers who have found rising equity easy from their portfolio to use as deposits.
Or if you’re in the service industry then a shift to registering your own Limited company and working through this will mean you can take advantage of the lower 20% tax band for companies as compared to the higher 40% band for individuals earning over £31,865. We’ve seen an explosion in new company registrations in the last 12 months and are seeing more and more people not from just the IT crowd but from NHS staff working through agencies to construction workers and engineers moving into this.
By Anni Khan at Tax Affinity Accountants.
Tax Affinity Accountants are experts in Tax and Accountancy. Based in Kingston upon Thames they provide a bespoke service to clients right across the UK and are considered in the industry to be experts in business advice. They mentor and support members of the public to make their businesses grow and reach their full potential.
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