Tax Breaks
Five powerful Tax Breaks every month. See how much they could save you

May 2009

  • Tax-free investments
    With returns on bank and building society deposits so poor these days, it may be time to dust off the investment bond you had set aside for a rainy day. But there could be tax consequences of taking money this way. So how can you make sure the Taxman doesn't get to grab a chunk of your cash?
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  • Cash now - no tax later
    We could all do with a little extra cash from time to time. Perhaps you need some spending money for the summer holiday. But if you draw extra salary from your company, you'll pay tax and NI though PAYE and the company will have to pay employers' NI on top. Could a lump sum in advance of business expenses be the answer?
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  • An Inheritance Tax health-check
    Planning for the unexpected is difficult. For example, what would happen if you fell ill and were unable to handle your financial affairs? Your careful Inheritance Tax (IHT) planning could go out of the window. To prepare for this possibility you could set up a "Lasting Power of Attorney" - this makes someone else responsible for looking after your finances. But there are IHT tax traps for the unwary; how can you dodge these?
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  • Relative tax savings
    Paying relatives who are charged tax at lower rates than you is an efficient way to extract income from your business. But will the Taxman accept it? What arguments can you use to justify paying, say, your retired Dad a consultancy fee from your company?
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  • Salary sacrifice equals less tax
    These are testing times for businesses and you need the right employees in place to help your company stay afloat. If you've lost a key member of staff, there's a way to entice their right replacement with an offer they can't refuse - no tax or NI on £8,000 of their first year's salary. That could save them £3,300. Too good to be true?
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Tax Breaks Directory

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