Personal Tax Planning 2016/2017 – Part 2

Personal Tax Planning 2016/2017 – Part 2
This is Part 2 of the Personal Tax Planning checklist, you can view the first part by clicking here – Personal Tax Planning 2016/17 – Part 1.

The purpose of this checklist is to suggest strategies you may wish to consider as we approach the end of the 2016/17 tax year or planning opportunities available thereafter.

It is a good opportunity to review your financial position and consider plans for the year ahead. Ideally you should do this with your accountant. This checklist will help you to structure your meeting so you can run through your current position and plans. 

1.     Maximising use of income tax allowances and bands

·       Wages for spouse?

·       Tax efficient Partnership profit shares?

·       Transfer investments to any none/lower earner?

·       Joint ownership with spouse or civil partner to share income?

·       Considered replacing earnings with dividends?

·       Can you claim marriage allowance?

·       Dividends up to £5,000 tax free?

·       Used your tax free personal savings allowance of up to £1,000?


2.     Avoiding 40% or 45% income tax

·       Have you considered the tax advantages of incorporation to open more tax planning possibilities, including the potential sale of goodwill?

·       Can you defer bonuses or dividends into next tax year?

·       Potential for income splitting?

·       Are there assets that may be sold to the Company at low CGT rates?

·       Considered your Company holding investments to avoid higher income tax rates?

·       Could you limit income to accumulate capital that could be charged at lower CGT rates?

·       Is there scope to restrict income to less than £50,000 and preserve child benefit?


3.     Employment taxes

·       Consider National Insurance deferral if more than one job or both employed and self-employed?

·       Would you change your company car for a more tax efficient vehicle?

·       If you are taxed on car fuel benefit do you have a very high private mileage to warrant that?

·       Have you claimed the maximum authorised mileage rates for business use of your private car?

·       If your employer doesn’t pay the maximum mileage rates have you claimed a deduction for the shortfall on your self-assessment?

·       What about using the HMRC approved enterprise management incentive scheme to retain or recruit key employees or help with succession?

·       Were your tax codes correct for 2016/17?


4.     Tax management

·       Have you negotiated time to pay arrangements with HMRC to ease cash flow and mitigate penalties?

·       Have you applied to reduce self-assessment payments on account where appropriate?

·      Will you need to ask HMRC to code out income tax underpayments up to £3,000


Don’t forget if you need any help get in touch with us as we are always happy to help.  You can contact us by phone on 0115 956 9452 or send us an email on This email address is being protected from spambots. You need JavaScript enabled to view it.
Personal Tax Planning 2016/2017 – Part 1
Marshall Smalley 2017 Budget Overview

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