How to maximise your tax efficiency before tax year end 5 April 2023

Claim all of your allowable expenses

Ensure paid invoices have been recorded – chase those you’re still awaiting payment for

Keep receipts 6 years after accounting period

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

Make contributions through your Limited Company for greater tax efficiency

You can pay up to £40,000 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

The following example is based on you taking a salary of £9,100

£3,470 taxed at 0%

£2,000 dividend allowance taxed at 0%

The remaining £35,700 is then taxed at a rate of 8.75%

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

Avoid paying NICs by paying yourself a low salary, then ‘topping up’ with dividends

Reduce your company’s liability to Income Tax (including on Dividends) by diverting your company’s pre-tax profits into a company pension.

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