Kirkpatrick & Hopes - Succession Planning Accountants

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Personal Allowances and tax planning 2014-15

Many people consider tax planning towards the end of the tax year. I believe that this is the wrong time to carry out this planning and I feel you should start planning at the beginning of the tax year. Now is the best time to start tax planning your affairs for the tax year ended 5 April 2015.

We would be happy to meet with you to help calculate your likely tax bill based on your income needs and will be pleased to advise on ways to mitigate your tax bills.

Personal allowances are fixed for 2014/15 at £10,000, the level promised in the Coalition Agreement. However, the recent Budget announced that there will be a further (above inflation) increase to £10,500 for 2015/16, in line with the allowance currently available to taxpayers aged 65 to 74.

Those aged 75 and over will continue to receive a personal allowance of £10,660. Please note that if your adjusted net income exceeds £100,000, the personal allowance is reduced by £1 for every £2 over £100,000. This gives an effective rate of 60% on income between £100,000 and £120,000 for 2014/15.

Contact us for planning advice to avoid this 60% rate.


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