Year End Tax Review 2007 Contents A word to the wise Employee pensions A matter of trust Pension policies Family tax planning Mr and Mrs Inheritance tax Employee cars and fuel Borrowings and tax Tax-free perks Two jobs = too much NIC? Give generously and save tax Children's savings? Company or trade? Capital gains Business tax Investment limits Should VAT be flat?

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. If you operate through a "personal service company" - a company which provides your services to clients who would otherwise be regarded as your employer, if the company was not there - you need to consider the effect of the "IR35" rules.The tax charge has received widespread publicity, and you are likely to be aware of it if it affects you, but any individual who sells their own services through a company should consider regularly whether they could be affected. If you are affected by the Construction Industry Scheme, which requires building contractors to deduct income tax from payments to subcontractors, you are probably aware that there is going to be a change in the system on 6 April 2007, so you need to be ready for it. Action Point! Have you reviewed the likely taxable profits before your year end? Are you affected by IR35 or CIS?