Archive for February, 2015

As the end of the 2014/15 tax year draws to a close on 5 April 2015, it is worth taking some time to review your affairs and make sure that you do not pay any more tax than you need to. Here are some tips. Don’t waste your personal allowance. The basic personal allowance for 2014/15 is £10,000. Pay bonuses or salary before 6 April 2015 or transfer income to a spouse or civil partner to prevent their allowance being wasted. Reduce income below £100,000. The personal allowance is reduced by £1 for every £2 by which income exceeds £100,000. For 2014/15 it is lost when income reaches £120,000. To preserve your allowance and avoid high marginal tax rates consider deferring income, making pension contributions or giving to charity to take income below £100,000. Keep your child benefit. Child benefit is lost ... Read more