We can give you more information on all the
points below and on other tax issues
specific to your individual
(1) If you are home owner with a
spare room, you may be able to
benefit from the 'Rent a Room
Scheme', whereby homeowners can
charge rent up to
£4,250 tax free within the tax year.
(2) There are tax benefits to be
gained if you are married. With
Inheritance Tax (IHT), the transfer
of assets between spouses is exempt.
Individuals should ensure that they
transfer assets inter-spouse in
order to optimise their use of their
zero rate tax allowance band -
called the Nil Rate Band. Each
£250,000 Nil Rate Band.
(3) Spouses and co-habiting couples
should ensure that they organise
their savings so that the basic rate
tax payer holds the savings account.
(4) Inter-spouse transfers are tax
exempt for Capital Gains Tax (CGT).
Spouses should transfer assets to
each other to ensure that they
maximise the use of their annual
allowance, known as the annual
exemption (AE), so that they each
use up their
AE before paying any tax.
(1) If you are self-employed make
sure you register with the Inland
Revenue within the first three
months, otherwise you could be
liable for a
(2) If you are running a business as
a sole trader or partnership, it may
be better to become a limited
company. For limited company's there
is a nil rate of tax for annual
and 19% tax on all profits up to
We can show you the savings you can
make, and form the limited company
for you. See our Self employed page
for more details.
(4) Self-employed people who work
from home may not be aware that they
are eligible to claim a proportion
of the household expenses, such as
heating, lighting and telephone
calls, against their business
income. Any eligible expenses can be
claimed through the self-assessment
tax return. For heat and light as an
example the amount claimed could be
as follows: annual bill/number of
rooms in house x number of rooms
used for the business.