Tax yearend 2025

How to maximise your tax efficiency before tax yearend 2025

By Published On: 27 January 2025
Allowable Expenses

Allowable expenses

  • Claim all of your allowable expenses

  • Maximise your trivial benefit allowances for all directors

  • Keep receipts 6 years after accounting period

ISAs

ISAs

  • Use your ISA allowance
  • £20,000 taxed at 0% per year
  • £9,000 for junior ISAs (JISAs)

  • If you have a spouse / partner be sure to utilise their £20,000 allowance
Pension Contributions

Pension Contributions

  • Make contributions through your Limited Company for greater tax efficiency
  • You can pay up to £60,000 taxed at 0% into your pension per year from your Limited Company

  • Carry forward any unused allowance for the past three years
  • Utilise your partner / spouse’s allowance

  • Any contributions must be made before your company’s financial year end to qualify for deduction

Dividend Allowance

Dividend Allowance

  • The following example is based on you taking a salary of £12,570

  • £500 dividend allowance taxed at 0%

  • The remaining £37,200 is then taxed at a rate of 8.75%

Inheritance Tax

Inheritance Tax

  • Use your allowance of £3,000 per year NOT per person
  • You can give gifts or money up to £3,000 to one person or split the £3,000 between multiple people

  • Carry forward any unused annual exemption into the next tax year for one year only
Save Money

Other cost saving measures

  • Avoid losing your personal allowance if your income exceeds £100,000 by making personal pension contributions

  • Utilise your annual capital gains exemption of £3,000

  • Apply for the marriage allowance if either you or your spouse are not using your full personal allowance

  • If you’re looking to invest, consider EIS, SEIS or VCT’s as tax reducers

Note: All the information and advice in this blog post was correct at the time of writing.

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