Knowledge Portal: Managing Business Finances and more

CHRIS BARNARD October 15, 2024

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Essential UK Tax Planning Tips for 2024

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I know tax planning isn't a particularly exciting concept. But with the new Labour government’s talk of raising taxes, I figured it might be helpful to share some ways to manage your money so you can make better tax savings.

You might be thinking, but tax is tax, right? You just send a bunch of receipts to your accountant each year and bite your fingernails off waiting for the bill.

Not necessarily, and if this sounds like you, I have good news. There is a much better way of approaching taxes that can save you a heap of money.

Ever heard of tax planning?

What is Tax Planning?

This is where we look ahead at your goals and what you want to achieve and do over the next few years. Then we consider your types of employment, your income streams, where you have money, what you want to do with that money and making a plan that’s highly tax efficient and keeps more of your hard-earned cash with you.

There are so many little-known areas to claim tax relief or ways to manage your income for maximum benefit, and you don’t always need to be self-employed! The problem is not all accountants are tax accountants, and many are simply unaware of a lot of the nuanced ways to save money on taxes.

But I’m a total geek when it comes to money, taxes, planning and strategy; plus, I’m a Chartered Certified Accountant. So, I absolutely love sitting down with clients and helping them keep as much of their profits as possible by making sure they handle their money in the best way possible.

Here’s a quick list of things you might not know about when it comes to tax relief. If you’re keen to save more of your money, get in touch and ask about our tax planning services.

Tax Relief for UK Employees

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Yes, even employees can claim tax relief and benefit from tax planning. Many employed people think they don’t need an accountant as it’s all taken out automatically. You may work for a great company, but they are highly unlikely to be spending any time advising you on ways to claim tax relief as an employee. It’s worth getting clued up at the very least and ideally getting advice to see if it’s worth you working with a tax advisor to save you some money.

Here are a few general expenses you may not know about
(check out the government guidelines here):

Work from Home Allowance: Yes, you can claim for working from home as an employee. You're entitled to claim a without the need for detailed receipts.
Specialist Equipment: Need a decent office chair or an extra screen? You can claim expenses for specific work-related equipment you need to work from home. Check with your employer first, as they may reimburse you. But if not, you may be eligible to claim it back on your tax return.
Professional Fees and Subscriptions: These may be deductible if they are industry-related fees necessary for your role.
Telephone Costs: Employees can claim a percentage of phone bills used for business purposes if a separate business phone isn’t provided.
Moving Home Due to Employment: Relocated for work? A specific allowance is available for employees who need to move home because of a job relocation.
Check Your Tax Code: Many people overpay taxes for years, unaware they are simply using the wrong tax code! Don't just assume HMRC have it right - double-check.

Tax Relief for Specific Occupations

There are various allowances for different occupations that many people are simply unaware of and, therefore, losing out.

Such as:

Pilots: Fixed allowance of £1,022 for uniforms, professional clothing, and job-specific expenses.
Oil & Gas Workers: Working offshore means you may qualify for different tax reliefs based on the proportion of time spent onshore versus offshore.
Employees Needing Specialist Clothing: You can claim for uniforms, protective gear, and job-specific clothing costs through HMRC’s fixed-rate allowances.

Tax Savings for Self-Employed and Sole Traders

There are many opportunities for tax relief for the self-employed. Most people know about general tax savings, but we often see people at opposite ends of the scale: those playing it too safe and missing out and those who attempt to claim for too much and risk getting caught out one day. So it makes sense to get expert advice on this and know you’re safe and keeping as much money as possible.

Trading Allowance: If you have super low expenses or income, it might be better to claim the full allowance of £1,000 annually without itemising everything.
Home Office Expenses: Most of us work from home now, but did you know you can claim expenses for that? And do you know how to calculate it? Again, this is where working with a tax accountant can really help.
Mileage Allowance: Meeting someone in person? Going networking or to a conference? Keep track of your mileage, and you can claim 45p per mile for the first 10,000 miles. After that, it drops to 25p per mile.

Telephone and Internet: Many people get caught out with this one. Here’s a quick overview…

Single Phone Line: If you use one phone for both personal and business use, you can claim 50% of the total bill.
Separate Phone: If a separate business phone is used, 100% of the costs can be claimed.

Industry-Specific Tax Savings

Similar to employees, certain professions benefit from higher allowable expenses specific to their industry:

Actors and Presenters: Due to the nature of this role requiring you to be on TV etc., you can claim for things like hair and makeup costs, clothing, and agent fees.

UK Tax Planning For Company Directors or High Earners:

Tax planning becomes even more valuable the higher up the pay scale you climb. Never be afraid to ask how to manage your money better. We aren’t born knowing this stuff. At Collective Concepts Accounting, there are no stupid questions. We’re just keen to share our knowledge with you and help you make greater tax savings and climb even higher.

Here are a few tax benefits to consider:

Pension Contributions: The obvious one, but are you really making the most of this allowance? Payments into a pension will reduce your taxable income.
Tax Efficient Savings: Besides your pension allowance, are you also maximising your ISA allowance? ISA’s offer tax-free saving opportunities and can help bring that tax bill down even further.
Company telephone: 100% of this cost is allowed as an expense
Healthcare & Insurance: You can have your limited company pay for relevant life coverage as a tax-free benefit. Other healthcare-related schemes can go through the company but may be classed as a benefit in kind. This is where working with a tax accountant will clarify what you can do to claim additional tax relief.
Salary/Dividend: Getting this mix right goes a long way to saving you money on that tax bill.
Working from home: Just because you’re a director doesn't mean you can’t claim at least the £6 a week allowance.
Enterprise Investment Scheme (EIS) & Seed Enterprise Investment Scheme (SEIS): This is when it starts getting more tricky, and I would 100% recommend getting advice from someone experienced and knowledgeable. Done correctly, these are highly effective ways to benefit from immediate income tax relief and deferral of capital gains when investing in specific shares. (See a govt guideline here)
Crypto Tax Returns: This is one of our areas of expertise. We’re highly experienced with crypto and can help you plan the best way to manage it, cash in, and file crypto tax returns. Check out our website for more info on this.

Company Vehicle Options:

Electric Vehicles (EVs): Sometimes you get better tax benefits with a company-owned EV.
Vans vs. Cars: In some instances, company directors are better off using a van or commercial vehicle instead of a regular car for tax purposes.
Mileage vs. Company Car: Deciding which of these is best depends on a number of factors, and it’s best to get advice and consider your personal situation and future plans.

Property Tax Relief for UK Landlords

Another area we specialise in is property. So we can give really tailored advice here. However, for the purposes of this short checklist, here are just a few general things you can claim for:

Property Allowance: For smaller rental incomes, make the most of the £1,000 annual allowance instead of itemising every expense.
Repairs & Maintenance Costs: Track all repair, maintenance, and management costs, as they may be deductible.
Interest Relief: Mortgage interest relief may be available to you, but again, seek specialist advice here and don't just assume you can claim all of it! Sometimes, it's better to set up a company for your property.

Proactive Tax Planning

Don't wait until it’s time to file to think about tax planning! Being proactive about your money and potential taxes means thinking ahead to avoid last-minute surprises and maximise savings. We offer tax planning that checks in regularly throughout the year and takes into account your current situation and future goals and plans.

As technology advances and takes over day-to-day accounting, it’s more important than ever to have a skilled tax accountant at your side to advise and help you plan and manage your money so you keep more of it, improve profitability and achieve your goals faster.

Ready to save money and talk tax planning? Book a free chat with us to see if we can help.
Follow Chris on LinkedIn for more tax and accounting tips

FAQs on 2024 Tax Planning

When does the 2024/25 tax year run from?
The 2024/25 tax year runs from 6 April 2024 to 5 April 2025. Any tax planning steps you take during this period can help optimise your allowances and reduce your overall tax liability.

What are the most important allowances to use before the year end?
Make sure you use your Personal Allowance, Dividend Allowance, ISA limit, and Capital Gains Tax exemption. If you run a business, review pension contributions, salaries, and dividends before 5 April 2025 to make the most of available reliefs.

How can pension contributions reduce my tax bill?
Pension contributions qualify for tax relief at your highest rate, making them one of the most effective ways to lower taxable income while saving for the future. Contributions must be made before the end of the tax year to count.

Are there tax planning strategies for company directors?
Yes, balancing your salary and dividends efficiently can help minimise tax, and timing dividend declarations before the year end ensures you benefit from the £500 dividend allowance (2024/25).

Should I review my capital gains before 5 April?
Yes, reviewing gains and losses before the year end allows you to use your Capital Gains Tax annual exemption, reducing or eliminating tax on disposals. Losses can also be carried forward to offset future gains.

Can Collective Concepts Accounting help with my tax planning?
Yes, we can help you identify the most effective strategies for your personal and business tax position, ensuring you make the most of current-year reliefs and plan proactively for the next financial year.

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Business rates: The most outdated tax in the UK?

By Chris Barnard • January 21, 2026

Few things frustrate British business owners more than business rates. If you ask someone running a shop, café, studio, or office, what they think about business rates, you’ll get the same answer. And it isn’t one we can publish! Almost all owners see business rates as outdated, unfair, and out of touch with how businesses work today. It raises an awkward question. In a country supposedly trying to encourage entrepreneurship, regeneration and innovation, why are we still relying on a tax that seems to actively discourage all three? A tax stuck in the past Business rates have existed in some form for centuries. They started as property taxes in 17th-century England, when most wealth was in land and buildings. Back then, it made sense: if you had valuable property, you were seen as successful and able to help fund local services. Value is now created through digital services, intellectual property, brands and platforms, and not just physical premises. Yet business rates still operate on the same basic principle. Where you are matters more than how you’re actually performing. There have been some attempts at reform but there has been no interest in conceding that the tax is no longer fit for purpose. Rateable values are still based on estimated rents. Revaluations do not happen often, and reliefs are added on top instead of being part of the system. In short, business rates have been adjusted, not redesigned. How much are UK businesses really paying? Many people are surprised by how much businesses pay in rates, especially compared to other business taxes. UK businesses pay more than £25 billion in business rates each year. This is one of the biggest business taxes, second only to employer National Insurance contributions. According to the Office for Budget Responsibility , business rates consistently raise more revenue than corporation tax from SMEs. The way business rates are calculated in England also stands out. For 2024 to 2025, the standard multiplier is just over 51p per pound, so businesses pay about 51p each year for every £1 of rateable value. This is especially controversial because businesses must pay rates even if they are not making a profit. A company can be losing money and still have a large rates bill. In contrast, corporation tax only applies to profits. The British Retail Consortium often points out that business rates hit physical retailers the hardest. Retailers make up about 5 per cent of the UK economy but pay over 20 per cent of all business rates. For many high street businesses, rates are their biggest fixed cost after wages and often cost more than rent. The physical presence penalty Business rates mainly penalise businesses for being visible and having a physical presence. The more established you are in your community, the more you usually pay. Top high street spots, warehouses near transport links, and city-centre offices all have higher rateable values. At the same time, digital businesses can earn a lot in the UK while working from cheaper locations or even abroad. There are some digital services taxes now, but they bring in much less than business rates and only affect a small number of companies. This means the system encourages businesses to keep their physical presence small and discourages investment in high streets, town centres and community spaces. It’s no wonder that our high streets have become like ghost towns. What do other countries do differently? The UK depends more on property-based business taxes than most other countries. In Germany, local authorities levy a trade tax based largely on profits , not property values. France has made big changes to its business taxes by reducing those based on property and focusing more on economic activity and value creation. Many countries check property values more often that the UK, which helps avoid sudden jumps in costs, and they limit yearly increases more strictly. The priority elsewhere is to focus more on what businesses earn, not just where they are. Is reform even possible? Business rates give local authorities a steady and reliable source of income, which makes them hesitant to change the system. However, just because the system is stable does not mean it is fair for those who pay. The current setup puts too much pressure on some sectors that are already struggling, while letting others grow quickly with lower costs. The main obstacle to reform is political. Any real change would shift who pays more or less tax. Some businesses would pay more, others less. It means big decisions which most politicians shy away from. Ignoring this issue has real effects, which we can see on our high streets. Time for a grown-up debate Business rates no longer match how business works in the UK. They discourage investment in physical locations, make competition unfair, and put too much pressure on traditional businesses. Whether the solution is a tax based on turnover or a mix of models, keeping things as they are is getting harder to justify. This is not a question of lowering taxes. The challenge is to find a system that fits a modern economy. Don’t pay too much Business rates might feel immovable, but there are reliefs, exemptions and reductions available. Many businesses either miss them entirely or do not realise they qualify. Small Business Rate Relief, retail and hospitality relief, transitional relief and discretionary local authority support can all make a real difference if they are properly understood and applied. The problem is that the system is complex, inconsistent and rarely explained in plain English. We can look at how much you are paying in business rates and ensure that you are not missing out on possible reductions.