As the 2024/2025 tax year comes to a close on 5th April 2025, now is the perfect time for Owner Managed Businesses to review key tax planning opportunities. Taking action before the deadline can help ensure you're making the most of available allowances and little changes can really make a big difference to your tax bill!
Luckily, our team have put together some key points for you to consider:
Keep your company happy with trivial benefits! Businesses are allowed to provide trivial benefits to employees and directors - small treats up to £50 each time (excluding cash or cash vouchers). This could be meals out, a bottle of wine or even a bunch of flowers to celebrate their birthday.
Please note:
Hosting a staff party? You can also claim up to £150 per attendee (including VAT) tax-free, as long as:
With personal allowances and tax bands frozen, directors should review their salary and dividend mix to ensure the most tax-efficient setup. Working with an accountant can help ensure you're making the most out of your tax band. If you need help or advice with this, feel free to contact a member of our team for tax planning support.
Despite changes in National Insurance thresholds and rates, £12,570 remains the most tax-efficient salary level for many directors. Make sure you’re paying yourself in the most efficient way possible.
Remember that if you maximise company pension contributions, you can significantly reduce your Corporation Tax (currently between 19% and 26.5%). All you need to do is make sure that you have paid the maximum allowable pension contribution before 5th April 2025 to benefit from tax relief.
Have you checked your Personal Tax Account to ensure you qualify for the maximum pension? The deadline for topping up contributions for the 2006/07 tax year onwards is 5th April 2025. After this, you’ll only be able to backdate six years.
If your spouse is in a lower tax band than you, consider transferring shares to them. This allows them to receive dividends at a lower tax rate, meaning that you can utilise all of their basic rate tax band whilst you are paying higher tax rates.
Your company can claim 100% relief on plant, equipment, and eligible commercial property refurbishments up to £1 million. If you are considering a major purchase, do it just before the tax year ends, don’t wait until April!
If you’re selling or liquidating your business, act fast! The Entrepreneurs’ Relief tax rate is rising from 10% to 14% from 6th April 2025. Completing transactions before the deadline can help you make some big savings.
Red Fish Accountancy offers tax planning meetings for just £250 + VAT. Our team of experts will review your individual circumstances and help you make the most tax-efficient decisions for your business.
Don’t leave it to the last minute! Contact us today:
📅 Book your meeting Jennie, Ollie
📞 Call us on 01903 900151
📧 Or drop us an email to enquiries@redfishaccounts.co.uk
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