As we move into March, and towards the end of the financial year, many of the business owners we support at Cirencester Growth Hub will be turning their attention to plans for 2020/21.
But first, it is a good idea to do some end of year tax planning, to make use of available tax allowances before the new financial year starts on April 6.
If you own or run a business, here are some things you could be doing:
- If you are a shareholder, you are entitled to a tax free dividend, which is currently £2,000.
- If you are selling an asset you have an annual tax free Capital Gains Allowance of £12,000 – any profit above this is liable to tax. If you haven’t used your CGT allowance, you might want to do so; if you have, you might want to defer the sale of an asset to 2020/21.
- If you have an ISA, maximise your use of the available tax free allowance. For 2019/20, this is £20,000, which can be spread across different ISAs.
- You are allowed to make pension contributions of up to £40,000 per person, per year, so you might want to pay more in if you are able to do so.
Careful tax planning is just one way to help develop your business – and at Cirencester Growth Hub we are all about nurturing businesses. Cirencester Growth Hub, next to the Royal Agricultural University, is part of the Gloucestershire Growth Hub network and supports developing businesses. We run events and workshops, and we offer co-working space, available on a pay-as-you-go or membership basis, and meeting room hire.