The new tax year commenced on 6 April 2016, so this month it’s important to familiarise yourself with what has changed and how you can benefit from the new contractor tax opportunities. AJN Accountants, as specialist contractor accountants, can provide bespoke tax planning for the 16/17 tax year to ensure you minimise your tax and maximise your contractor take home pay.
Tax rates and allowances for 2016/2017
This table shows the rates and allowances for last year, 15/16, and for the new year, 16/17.
There are a number of changes and the new dividend rules will affect contractor tax so it is important to find ways to reduce you tax bill through other legitimate means.
- Claim all tax-deductible expenses relating to your business
- Pay into a private pension to pay basic rate tax for longer
- Shelter your savings income from tax by using ISA’s
- Consider Salary Sacrifice to avoid paying more dividend tax, whilst saving for your retirement
- Get organised. Work with an accountant so you don’t miss important tax breaks and ensure you take home more this year by saving tax.
For a free tax planning consultation
AJN Accountants offer a free tax planning consultation to get to know your own bespoke tax situation and provide guidance on ways you can save tax in this tax year and beyond.
Contractor tax – important dates
6 April: Start of the new tax year
6 April: New Stamp Duty Land Tax 3% surcharge to be applied to second homes
31 July: Pay second payment on account
31 October: Final date to file paper tax return for 15/16
31 January (17): Final date to file online tax return for 15/16
31 January (17): Pay tax bill for 15/16 + first payment on account for 16/17