Year End Tax Review 2008 Contents New Year's resolutions Investment limits Borrowings and tax Family tax planning Mr and Mrs Give generously and save tax Jam today, or jam tomorrow? Tax payback - tax credits Bringing it back home Children's pensions? A matter of trust Children's savings? All change for gains Second homes Portfolio gains Capital ideas Tax-free perks Employee pensions and NIC Pension policies Employee cars and fuel Business tax Pay rise for the other half? Company or trade Two jobs = too much NIC Should VAT be flat? VAT and cash Inheritance tax One careful owner

Business tax If you run a business - whether it's a sole trade, a partnership or a limited company - the end of your accounting period is the most important date for tax planning. You can move income and expenditure from one year to another, changing the rate of tax and delaying tax payments, by reviewing your plans for purchases and sales of capital assets or the payment of bonuses, and other significant expenses. If the accounting date is different from the end of the tax year, there are some advantages and pitfalls in the mismatch between the two - for example, a salary payment may be an expense for the company either earlier or later than it is income of the employee. It's worth thinking about the opportunities and the possible problems around the two year ends. There are significant changes to business tax coming in 2008/09. The relief for capital expenditure is changing, which makes it important to plan the timing of purchases. The rates of corporation tax are going down for large companies but up for small companies. The effects are too complicated for general advice to be helpful - it will be important to take into account the particular circumstances of your own business. Action Point! Have you reviewed the likely taxable profits before your year end?