Next month marks the beginning of a new tax year and for many consultants and GPs in private practice, a new ‘trading year’.
Most unincorporated independent practitioners tend to prepare their practice accounts more or less in line with the tax year – to 31 March – and many who trade as companies do so too. Susan Hutter gives her advice on what preparations to make now.
Individual Savings Accounts (ISAs)
You and your spouse can pay £20,000 each year into an ISA. The main types of ISAs are cash, and stocks and shares, and you can mix and match.
The tax advantage is that interest and income – i.e. dividends – are free from UK tax.
Interest rates are fairly low at the moment and therefore, although safe, cash ISAs are not that exciting.
Also, you may be concerned at the current volatility in the Stock Market. Even if you had the lump sum available, you may be wary about putting the whole of the allowance into the Stock Market in one go.
An alternative to paying a lump sum is to pay monthly into a stocks and shares ISA over the tax year, which spreads the risk, as you are buying units at different prices. As always, you should take the advice of a qualified adviser.LOGIN OR REGISTER TO READ MORE……………