Local Life - Wigan - May 2019

62 Business View
Happy New
(Tax) Year
by Chris Alcock - CMA Accountancy
Over the past few months, we have detailed the
changes that businesses face with Making Tax
Digital, which went live on 1st April. If you are in
business and still unsure on how this will impact you;
please call us on 01257 255521 for an appointment
when we can discuss this in more detail.
Don’t miss out! For a limited period we are offering
all new clients Xero or Quickbooks software free
of charge for 6 MONTHS if they sign up for our
services.
Going forward, we take a look at individual tax
planning and areas that you can look at to ensure
that you take advantage of the various tax reliefs
available.
• Personal Allowances – From 06 April this
increases to £12,500 and the higher rate band
starts at £50,000. – Part of the allowance can
be transferred to a spouse, saving up to £400 of
income tax per year.
• Income from jointly-owned assets – It is usually
assumed that these are allocated equally for tax
purposes. An election could be made to split
the income to reduce income tax for higher rate
partners. This may be relevant if you own a buy to
let property.
• Giving to Charity – Making a charitable donation
under Gift Aid reduces income when it comes to
restriction of personal allowances. It is therefore
more beneficial for such gifts to be made by the
higher rate spouse.
• Higher Income Child Benefit Charge – If you
receive Child Benefit and have earnings in excess
of £50,000 then you will suffer an additional tax
charge. There are ways to reduce the impact of
this if you take action within the tax year. If you
are a company director and receive dividends
then the timing of these can impact this charge.
• Rent a Room – This provides up to £7,500 of tax
relief if you let out a furnished room in your own
home. This can be a great way of supplementing
your income. Be careful though if you receive
certain benefits as this income may affect these.
These are just a few measures that tax payers
can make to help reduce their tax. CMA provides
full accountancy and tax services for businesses,
individuals, sole trader and landlords – to book your
FREE consultation, please call us on 01257 255521.
Feel free to drop by the office on Skull House Lane
in Appley Bridge and we can discuss these further
over a coffee. Of course, there will be no charge for
the initial meeting.
Chris Alcock ACMA - CMA Accountancy
39 Skull House Lane, Appley Bridge,
Wigan, WN6 9DR
Tel: 01257 255521
Email info@cma-accountancy.com
web www.cma-accountancy.com