How can I reduce my tax bill?

There are number of simple steps which you can take to help reduce your tax bill.

But don’t forget the GOLDEN RULE: don’t save tax at the expense of commercial benefits. Better to earn £1 profit and pay 40p tax than to forgo 60p net profit in order to pay no tax at all.

• Divide your assets and income with your spouse so that best use is made of allowances and rate bands.
• Consider paying contributions to a personal pension or stakeholder pension plan.
• Make sure you claim all business expenses to which you are entitled.
• Claim all the reliefs and allowances to which you are entitled.
• Do not overlook capital allowances on plant and machinery.
• If you are trading as a sole trade or partnership, consider incorporation.
• Make use of tax-free investments such as ISA’s and National Savings Certificates.