Tenon: Entreprenuers must sort out tax early

Entrepreneurs should complete their 2008/2009 income tax returns early to give themselves a chance of maximising reliefs in the tax system before the introduction of less beneficial rates from April 2010, say advisers.

With the introduction of a 50% tax rate from 6 April 2010, and restrictions on pensions relief a year later, entrepreneurs are advised to deal with their 2008/2009 to give themselves time to manage their affairs before the new rates kick in.

'We are encouraging all entrepreneurs to review their financial and tax affairs before 5 April 2010. In practical terms this probably means completing the 2008/09 income tax return earlier than might ordinarily be the case, so that one has a basis from which to start, but the potential tax savings arising from having one’s ducks in a row before 5 April 2010 cannot be under estimated,' said Tenon's Andrew Jupp.

'Our advice to everyone at the moment is to act now before it is too late!'

Further reading:

Pensions tax could damage UK competitiveness, says committee