Time For Year-End Tax Planning
Now that the end of 19/20 is in sight what tax planning do you need to do?
- Have you taken enough money from your company to cover the basic rate (£37,500)?
- Make sure you definitely cover your £12.5K personal allowance.
- Have you made as many pension contributions as you can?
- If you’ve already reached the basic rate, then defer taking any further income until after 5/04/2020. Borrow the money from your company instead.
Request PAYE Refunds From HMRC
If the refund is too large to offset against future PAYE/NI payments, then ask for it back from HMRC.
Phone them on 0300 200 3200 or do it online https://www.gov.uk/payroll-funding
They won’t refund automatically!
On Contracts – Enter 2020 Not 20
Don’t abbreviate the year 2020 to 20 on important documentation, such as contracts. If you use 20 then it can easily be altered to a different date also it won’t be clear when the document came into existence.