{"id":2541,"date":"2022-03-14T14:18:10","date_gmt":"2022-03-14T14:18:10","guid":{"rendered":"https:\/\/kirkwoodwilson.co.uk\/?p=2541"},"modified":"2022-03-14T14:18:10","modified_gmt":"2022-03-14T14:18:10","slug":"kirkwood-wilson-tax-liability-chartered-accountants","status":"publish","type":"post","link":"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/","title":{"rendered":"How To Reduce Your Tax Liability"},"content":{"rendered":"\n<p>Can you believe we\u2019re almost at the end of another tax year?! It certainly doesn\u2019t feel like twelve months ago that we were preparing for the changes that came into effect for the 21\/22 tax year.<\/p>\n\n\n\n<p>As always, we think March is a really important month to sit down and make sure you\u2019re maximising any of those tax allowances that might be relevant to your own individual tax position. Below are our top suggestions for ways to reduce your tax liability for the 21\/22 tax year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pension Contributions<\/h2>\n\n\n\n<p>You may be aware that you receive an annual allowance of up to \u00a340,000 per year for pension contributions if your Limited Company makes contributions for you. Making a contribution will not only utilise any available allowances but will also attract tax relief from a Corporation Tax perspective in your Limited Company.<\/p>\n\n\n\n<p>If you make personal pension contributions before 5 April 2022, you will reduce your relevant earnings for income tax purposes. This is particularly pertinent for people earning between \u00a3100,000 and \u00a3125,140 as it could mean the reinstatement of some of your personal allowance.<\/p>\n\n\n\n<p>We would always recommend that you have a conversation with your Financial Adviser over anything concerning <a href=\"https:\/\/kirkwoodwilson.co.uk\/service\/payroll\/\">pensions.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Capital Gains Tax<\/h2>\n\n\n\n<p>Each person is entitled to \u00a312,300 of tax free Capital Gains every tax year. It\u2019s therefore recommended if you are likely to incur a capital gain in the near future, that you realise that gain prior to 5 April 2022 as you will lose that year\u2019s exemption after that date. It\u2019s also worth considering that your spouse may also have unutilised allowances, which could double the impact of any <a href=\"https:\/\/kirkwoodwilson.co.uk\/service\/tax\/\">tax<\/a> saved by crystallising gains this tax year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Planning for Remuneration<\/h2>\n\n\n\n<p>You may be aware that from 6 April 2022, there is to be an increase to national insurance and dividend tax rates of 1.25%. Whilst the impact is not huge (an additional \u00a310,000 dividend after 6 April would incur \u00a3125 in extra personal tax when compared with 21\/22), any additional income declared prior to 6 April would ultimately save at least some tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dividend Allowance<\/h2>\n\n\n\n<p>Anyone who owns shares in a company is entitled to \u00a32,000 of tax free dividends each year. If you\u2019ve not already been voted a dividend in the tax year to date, it\u2019s worth considering voting a dividend before 5 April 22. A \u00a32,000 dividend would save \u00a3150 of tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Capital Allowances for Sole Traders<\/h2>\n\n\n\n<p>If you\u2019re looking to reduce your sole trade profits in the tax year, you might want to consider replacing your van or some plant and machinery you hold in your business. The rate of the capital allowance depends upon the category of expenditure, however, in most instances you will see some amendments to your taxable profits by making a capital purchase. Our specialist <a href=\"https:\/\/kirkwoodwilson.co.uk\/service\/business-advice\/\">business advice<\/a> team will be able to help you plan for the future of your business. <\/p>\n\n\n\n<p>We really hope that the above has given you something to think about ahead of the end of the tax year. <\/p>\n\n\n\n<p>If you\u2019re unsure of your next steps, please feel free to get in <a href=\"https:\/\/kirkwoodwilson.co.uk\/contact\/\">contact<\/a> with our friendly, knowledgeable team. If you want to learn more about Kirkwood Wilson? Head to our <a href=\"https:\/\/kirkwoodwilson.co.uk\/about\/\">about us<\/a> page! <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can you believe we\u2019re almost at the end of another tax year?! It certainly doesn\u2019t feel like twelve&#8230;<\/p>\n","protected":false},"author":2,"featured_media":2542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[8],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Reduce Your Tax Liability | Kirkwood<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How To Reduce Your Tax Liability | Kirkwood\" \/>\n<meta property=\"og:description\" content=\"Can you believe we\u2019re almost at the end of another tax year?! It certainly doesn\u2019t feel like twelve...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/\" \/>\n<meta property=\"og:site_name\" content=\"Kirkwood\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/KirkwoodWilson\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-14T14:18:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/kirkwoodwilson.co.uk\/wp-content\/uploads\/kelly-sikkema-G_91H-3qZOA-unsplash-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1767\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"sitemanager\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@KirkwoodWilson\" \/>\n<meta name=\"twitter:site\" content=\"@KirkwoodWilson\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"sitemanager\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/\",\"url\":\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/\",\"name\":\"How To Reduce Your Tax Liability | Kirkwood\",\"isPartOf\":{\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/#website\"},\"datePublished\":\"2022-03-14T14:18:10+00:00\",\"dateModified\":\"2022-03-14T14:18:10+00:00\",\"author\":{\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/#\/schema\/person\/3c46162b8aa1979fd392d1e0efc3c9d8\"},\"breadcrumb\":{\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/kirkwoodwilson.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How To Reduce Your Tax Liability\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/#website\",\"url\":\"https:\/\/kirkwoodwilson.co.uk\/\",\"name\":\"Kirkwood Wilson Accountants\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/kirkwoodwilson.co.uk\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/#\/schema\/person\/3c46162b8aa1979fd392d1e0efc3c9d8\",\"name\":\"sitemanager\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/kirkwoodwilson.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/94fd25b172ec00e9901fa3adf88417df?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/94fd25b172ec00e9901fa3adf88417df?s=96&d=mm&r=g\",\"caption\":\"sitemanager\"},\"url\":\"https:\/\/kirkwoodwilson.co.uk\/author\/sitemanager\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How To Reduce Your Tax Liability | Kirkwood","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/kirkwoodwilson.co.uk\/kirkwood-wilson-tax-liability-chartered-accountants\/","og_locale":"en_GB","og_type":"article","og_title":"How To Reduce Your Tax Liability | Kirkwood","og_description":"Can you believe we\u2019re almost at the end of another tax year?! 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