Latest Topical Tax Planning Ideas

Are you aware of how the April NIC increases will effect Directors’ salaries?   From 6th April 2025, increases in Class 1 Employer’s National Insurance will come into effect, with the following changes: Employer’s NIC rate increasing from 13.8% to 15%. The secondary threshold, above which employer’s NIC are due, reducing from £9,100 to £5,000.…

As we approach another personal tax year end, we turn our thoughts to tax planning opportunities and actions that should be considered before 5 April. The list below is not exhaustive; however, it should provide some food for thought.   Pension Contributions Higher rate and additional rate tax can be saved on pension contributions. However,…

Do you have a 31st January 2025 payment on account liability still to pay? Do you know whether you can reduce your 31st January tax payment?   If you are still due to make your 31st January 2025 tax liability payment then there are several payment methods you can use, these are all available to…

Whilst one of the main talking points from the recent Autumn Budget was the increased National Insurance burden for employers, has one change gone under the radar?   Key Changes in the Budget Employers’ National Insurance Increase: The rate has risen from 13.8% to 15%, and the threshold at which National Insurance contributions apply has…

We share our pre-Budget tax planning ideas, as the first Labour Budget is now only 5 weeks away (30th October). There is currently a lot of speculation of adverse tax changes that the business community and private tax clients should expect. Unfortunately, we have no inside knowledge of what Rachel Reeves will say. However, as…

Has the Inheritance Tax Trap caught you out?   Inheritance Tax (IHT) receipts continue to rise. There may be some who have unnecessarily overpaid due to life insurance not being in a Trust. According to NFU Mutual, 6,810 estates that paid IHT in 2021/22 included life insurance policies which could be exempt from the charge…

Have you considered trusts when it comes to tax planning and asset protection?   The Purpose of Trusts Whilst trusts were created during the 12th century to protect the assets and interests of the nobility, these days their use is no longer restricted to higher society. Today, trusts serve the same purposes as they did…

From 6th April 2024 HMRC want to encourage more of the self employed to use the cash basis when completing their accounts and self-assessment tax returns.   The new cash basis from 6th April 2024 will mean: The cash basis will be the default, with an opt-out for those wishing to use the accruals basis.…

It’s the question which many start ups ask themselves, ‘Should I be a Sole Trader or a Limited Company?’   It’s something that we here at Whitings are more than happy to advise on and help you with. So whether this is your first business venture or you’ve had businesses before, it’s always helpful to…

With the reduction in employees National Insurance (NI) through the Autumn Statement, to 10% and the drop in the dividend allowance to only £500 from April 2024. Alongside the previously announced rise in Corporation Tax rates. The question directors will ask again is, am I better paying myself a higher salary rather than dividends?  …