Business News - March 2008

End of Tax Year Planning

The end of the tax year is fast approaching - here are two important tax planning ideas to consider before the 5th of April deadline.

ISAs

Individual savings accounts (ISAs) offer tax free gains and a contribution limit of £7,000 in any one tax year. With some careful planning around the end of the tax year, this means that a couple can shelter a combined amount of £28,000 from the taxman.

Pensions

Anyone intending to rely on the state to provide for them in retirement will be shocked and severely disappointed at just how little they will be expected to live on. It is therefore vital to invest properly for your retirement.

Investing in a pension scheme brings with it considerable tax breaks:

A higher rate taxpayer will have the Government contributing 40% of any contributions he or she makes to a pension.
A self-employed person can reduce his or her tax bill in line with any pension contributions made.
A company owner can reduce his or her Corporation Tax bill by the company making pension contributions.

Pension contributions based on the tax year 2007/2008 must be made by 5th April, so it is important to act as soon as possible.

For further information on these topics please contact Martin Sheehy on on (01628) 527956 or email martins@fishpartnership.co.uk.

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