Tax busting checklist


2011/12 Tax Busting Checklist
(Updated 28 March 2011)

Has your Accountant mentioned this?

Business Planning

1. If your spouse/civil partner earns less than the single persons allowance of £7,475 per year and helps out in your business you can pay them a wage to reduce your taxable profits. A wage of between £102 and £136 per week will not create a national insurance charge, but it will help your spouse gain credits toward the state pension and other state benefits.
Yes / No / N/A

2. If your children are aged at least 13, earn less than £7,475 and help out in your business you can pay them a wage to reduce your taxable profits.
Yes / No / N/A

3. Have you considered changing your accounting year end to use up any overlap relief created when you started the business?
Yes / No / N/A

4. Do you make sure you always have a pre year-end tax planning meeting with your accountant to make sure all necessary action is taken before your year end? After then it will probably be too late.
Yes / No / N/A

5. If you are a sole trader paying 40% tax and your spouse/ civil partner helps out in the business but is a lower rate taxpayer, have you considered making them a partner in your business to allocate some profits to them at a lower rate of tax? Or if operating as a Limited Company, gifting them some shares to pass dividend income to them?
Yes / No / N/A

6. If you are a sole trader earning less than £5,315 per year there is no need to pay Class 2 national insurance, but you may wish to pay the NI contributions to build up entitlement to the State pension.
Yes / No / N/A

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