Year End Tax Review 2006 Contents New Year's Resolutions Family tax planning Tax payback - tax credits Pay rise for the other half? Jam today, or jam tomorrow? Pension policies Employee pensions Children's pensions? Investment limits Employee cars and fuel Second homes Company or trade? Inheritance tax Should VAT be flat? Mr and Mrs One careful owner A matter of trust Tax-free perks Two jobs = too much NIC? P@Ye-filing Borrowings and tax Give generously and save tax Capital gains Capital losses Children's savings? Business tax

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 sub-contractors, you are probably aware that there is going to be a change in the system soon. The Revenue have now announced that they are putting off the change from 6 April 2006 to one year later - that gives everyone a bit more time to get ready, but if your certificate under the old rules will expire in 2006/07, you will need to apply again. Action Point! Have you reviewed the likely taxable profits before your year end? Are you affected by IR35 or CIS?