Tax Checklist

Personal Planning
Has your Accountant mentioned this?
53 When you contribute to a registered pension scheme you automatically can get basic rate tax relief on your contributions. If you are a 40% taxpayer you can also claim an additional 20% tax relief through your tax return. This means when you contribute £4,000 (net of 20% tax) to the pension scheme, you will get a further tax reduction of £1000, and the pension scheme will receive a total of £5,000. Yes No N/A
54 You can also contribute up to £2,880 net (£3,600 gross) per year into a pension on behalf of your children or grandchildren. The funds will be protected from tax charges and cannot be drawn on until the child/grandchild is aged at least 55./td> Yes No N/A
55 If you have a large win on the lottery or other surplus cash you want to invest for your retirement you are no longer restricted in the amount you contribute into a registered pension scheme. Contributions up to the annual allowance (currently £50,000) can attract tax relief, but you can put any amount in you wish. Yes No N/A
56 Is your Will up to date? A Will becomes invalid when you marry. If you don’t have a valid Will your spouse or partner will not automatically inherit all your assets, and may be left with insufficient funds to support themselves. Yes No N/A
57 If you are not married or in a civil partnership, but want to leave assets to a long-term companion or partner, inheritance tax will be payable on that gift. The only way to secure the exemption from inheritance tax on the gift is to marry/register a civil partnership with the intended recipient before you make the gift. Yes No N/A
58 Is there a wedding or civil partnership planned in your extended family? You can make an inheritance tax free gift to one of couple of up to £1,000. If you are a parent of one of them the gift in consideration of the marriage /civil ceremony can be up to £5,000 tax free. Yes No N/A
59 A tax efficient strategy is to write a Will containing a provision to pass on value equal to the inheritance tax nil rate band, (currently £325,000), and leave the rest free of tax to your spouse/ civil partner. Yes No N/A
60 If you are ill or die what will happen to your business? Do you have you policies for life assurance, critical illness cover, sometimes called key-man insurance?
61 If you have life assurance, have you looked at having the policy written in trust to avoid the proceeds that are paid out forming part of your estate on which Inheritance Tax is payable? This is very easy to do. Yes No N/A
62 Do you make regular gifts out of your income? All such gifts are free of inheritance tax once a pattern is established, and the total gifted does not reduce your standard of living, or your capital assets. Yes No N/A
63 Remember you can make gifts of up to £3,000 per tax year free of inheritance tax in any event. If you did not use this exemption last year you can make gifts of up to £6,000 in this tax year. Yes No N/A
64 If you want to make larger gifts to your loved ones, considered making those gifts as soon as possible. If you live 7 years after the date of the gift, the amount is not counted in the total subject to inheritance tax on your death. Yes No N/A
65 If you give to charity have you made a gift aid declaration so that the charity can reclaim the basic rate tax relief on the gift, and you can claim the higher/additional rate tax relief? Yes No N/A
66 Have you made a provisional claim for the Child Tax Credit if you have a child under16 or still in full time education? If your taxable income suddenly drops due to losses or other tax deductions, you can amend your existing claim to receive the tax credit from the start of the tax year. If you waited to make a fresh claim, it would only be backdated for three months. Yes No N/A
67 Have you claimed child benefit for your younger children? If you are a higher rate tax payer, the amount will be restricted for those with earnings between £50,000 and £60,000. Over £60,000 and the Child Benefit is nil. Yes No N/A