Third instalment of Antony’s top tax tips

Antony’s top tax tips

At our open day in November 2012, we were delighted that Antony Federer from Rayner Essex accountants popped in with cake, and to give a talk entitled “Tax Tips – My top 5 for freelancers.”

This was a lively presentation with plenty of interaction and discussion – thank you Antony.

Here is the third of his five top tips: Be aware of tax thresholds
Plan for tax in advance – it’s too late to change after the event!

Currently there is a basic rate of 20% tax. If your income is above around £42k pa, you will move to the 42% tax rate. If your annual income is over £150k, the rate is 52% – and please contact us as I’m sure we could be friends.

If you are near a threshold where your tax rate would rise, it is worth looking carefully to see if you want to make arrangements to stay in the lower tax band. Check you are claiming all your expenses. Consider involving your partner/spouse in your business. Make an additional pension payment. And think about Gift Aid and charitable donations.

If this has given you food for thought, then do consult a reputable accountant to help you further. This information was correct at time of Antony’s presentation in November 2012.