TaxPersonal TaxTax Guide 2002

Tax Guide 2002

Follow this helpful guide to the 2002 tax paying year.

APRIL
COMPANY CAR TAX

Company car drivers should review their tax position in the light of the new CO2 tax rules that came into force this month.

They link an employee’s company car tax charge to the car’s carbon dioxide emissions. Some people may find that they are better off taking an alternative benefit, such as a pay rise with a mileage allowance.

SOLE TRADER AND PARTNERSHIP TAX
Sole traders and partnerships with falling incomes should review their tax liabilities. They may be able to reclaim some of the tax paid on account on 31 January and reduce their 31 July payments. Some could enjoy significant cashflow advantages at a tough time.

FREELANCERS AND MULTI-JOBBERS
Individuals who are both employed and self-employed should review their national insurance position. You will have been paying different sorts of national insurance, and the taxman will not notify you it you have overpaid.

TAKING ADVANTAGE OF YOUR SPOUSE
Married couples who have shared investments might find some advantages in looking at how they are divided, so they can make sure they are taking advantage of all tax-free allowances and lower-rate bands of tax.

INHERITANCE TAX
Individuals should consider whether they want to make any gifts during the tax year. Up to £3,000 of gifts made in any one tax year can be made without being subject to inheritance tax.

JULY
PAY SOME TAX
You need to make your second payment on account for the last tax year by the end of July. It should be around half the income tax due.

SEPTEMBER
SELF-ASSESSMENT DEADLINE
If you want the taxman to work out your tax bill for you, you need to fill out the form and send it in by the end of the month. You should also send your return in by 30 September if you want any tax you owe (provided it’s a fairly small amount) included in the following year’s tax code.

JANUARY
FINAL SELF-ASSESSMENT DEADLINE
The end of the month is the final deadline for submitting your tax return for the previous tax year. If you’ve left it this late, you have to work out your tax bill yourself.

PAY SOME TAX
If you owe income tax for the current tax year, you should make a payment on account of around half the tax due by the end of the month. You should also pay any balancing payment in respect of the last tax year.

MARCH
INDIVIDUAL SAVINGS ACCOUNTS
With the impending end of the tax year on 5 April, individuals should review their ISA position and consider whether they want to take advantage of their whole £7,000 allowance. Use it or lose it.

CAPITAL GAINS TAX
You are allowed to make capital gains of up to £7,500 per tax year free of tax. Again, use it or lose it by 5 April.

VENTURE CAPITAL TRUSTS
You are exempt from capital gains tax on disposals of up to £100,000 per tax year on shares in these trusts. Again, use the exemption or lose it.

PENSIONS CONTRIBUTIONS
You have an allowance per tax year, based on your earnings and age, that you are allowed to invest in a pension. Again, in most cases, you will lose this allowance if you don’t use it by 5 April.

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