Tax pre year end housekeeping for Professional Practices

As the tax year end is approaching, we thought a brief ‘to do’ list would be helpful.

Before 5 April:

• Review your pension contributions and ensure that you have made the best use of your current year relief.
• Fund your ISA.
• Make any EIS or VCT investments that you wish to (remember EIS carry back to 2009/10 may be available).
• Where possible utilise your capital gains tax annual exemption.
• If you are earning close to £100,000 and likely to receive a bonus, consider the timing of any payment (if you can) - you may be able to protect your personal allowance for 2010/11 or 2011/12 (avoiding 60% tax) if your firm is able and willing to co-operate.
• For your employees, consider the timing of bonus payments - if this year’s bonus and next year’s bonus are paid at the start and the end of the 2010/11 or 2011/12 tax year you may be able to help employees retain their 2010/11 or 2011/12 personal allowance and so avoid 60% tax.