‘Local Jobs For Local People’
The Employers Forum
NB Be aware that HMRC is looking very closely at certain salary sacrifice schemes which it considers are less 'acceptable' eg those involving retail items, food and utility costs.
Pension contributions - even though you may be more worried about your income now, don't forget about saving for the future. Pensions are extremely tax efficient too. Not only are contributions to a pension fund fully allowable for income tax but the assets in the fund can grow tax free. Even better, if you can persuade your employer to make contributions to your pension, not only is that contribution in effect tax-free salary but both you and your employer will avoid paying National Insurance on that amount.
Inheritance tax shelters - you may be less inclined to make lifetime gifts at the moment, but you should not forget sensible tips for ensuring that assets do not form part of your estate for inheritance tax purposes. For example, life assurance policies should be written in trust so that they do not form part of your estate on death and worsen the inheritance tax position. If the proceeds go directly to the beneficiaries, there is no tax to pay, but if they fall into the estate they could be charged to inheritance tax.
Separate your personal wealth from your business - If you are not planning to invest cash back into your company, then consider paying it out to the shareholders by way of dividend or consider a pension contribution.
For further information on any of these points please contact Paul Henthorn at Grant Thornton UK LLP on 0114 262 9738 or email paul.henthorn@gtuk.com
