Don't miss out on year-end tax planning
Every now and again, the tax tail does wag the dog
As the tax year draws to a close, it may be sensible to draw breath and take stock of your tax affairs, making sure that you’re optimising your finances on both a personal and a business level.
Many entrepreneurs use dividends as their primary source of income, but the forthcoming changes to tax on dividends will shift the traditional landscape. The new 7.5% tax rate increase on dividends comes into effect in April 2016, and planning will almost certainly be required.
Elsewhere, the tax environment for pensions is changing. For those who are able to, there may be significant tax benefits in reviewing current arrangements and taking advantage of a one-off window for additional, tax-effective contributions.
These and other topics are covered in our article on year-end tax planning.
There is often a flurry of Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) activity leading up to the end of the tax year. Investors are seeking to lock in reliefs and companies can find it easier to conclude their funding rounds. These are not always as straightforward as they seem. In this issue of Enabling entrepreneurs, Adrian Walton, one of our SEIS and EIS specialists, highlights some traps for the unwary.