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

Published On: 07/03/2023
Allowable Expenses

Allowable expenses

  • 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
Pension Contributions

Pension Contributions

  • 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

Dividend Allowance

Dividend 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%

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
Cost Saving Measures

Other cost saving measures

  • 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.

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