24.3.2025 | Tax

Andrew Diver, Head of Tax at Beatons Accountancy Firm, examines how to reduce tax liabilities and take advantage of government incentives.

Let’s start with income tax saving.

Firstly, ensure your salary exceeds the National insurance threshold to ensure you are entitled to a qualifying year for state pension purposes.

The next consideration is to ensure you fully use your personal allowance (£12,570 for 2024/25). This doesn’t carry forward, so use it or lose it.

You should also look to avoid pinch points in the income tax system.

Where income exceeds £100,000, taxpayers have a marginal rate of tax of 60%, which means you work for the government more than you work for yourself.

Income between £60,000 and £80,000 can also have a high marginal tax rate if you claim child benefit.

Consider making pension contributions, gift aid donations or deferring bonuses to prevent exceeding these thresholds and the painful rates of tax.

Marriage allowance transfer is one of the most under-claimed reliefs – so it is one to consider.

If you are married and, your income is below the personal allowance, and your spouse pays basic-rate tax, you may be able to transfer £1,260 of your allowance to them, reducing their tax bill by £252 per year.

The tax-free dividend allowance is currently £500 in 2024/25, so if you own shares in a logistics or port-related business, consider extracting dividends before the end of the tax year to use the allowance. Having shares held by other family members can enhance the application of this allowance, too. Also, if you are a basic rate taxpayer, consider paying dividends to utilise your full basic rate band (£37,700 for 2024/25), extracting profits at only an 8.75% dividend tax rate.

Finally, if you have an Individual Savings account, the annual ISA allowance is £20,000.

Maximising contributions before tax year-end ensures tax-free interest and capital gains on savings and investments—useful for port operators and business owners planning long-term financial stability.

What about pensions?

The pension annual allowance remains at £60,000 (or lower if subject to tapering). Contributing before April 5 can reduce your taxable income and benefit from tax relief at your marginal rate.

On top of this, if you haven’t used your full pension allowance from the past three tax years, you may be able to carry forward unused reliefs, maximising your contributions before the deadline.

And, while we are on the subject of planning for the future and avoiding tax pitfalls, remember that you can give up to £3,000 per year free of inheritance tax.

Business tax planning

Shipping and logistics businesses investing in plant, machinery, or transport fleets may benefit from the Annual Investment Allowance (AIA), allowing full tax relief on up to £1 million of qualifying expenditure.

Full expensing allows 100% relief on main rate assets and 50% for special rate assets if you purchase new assets. This particularly benefits businesses upgrading port infrastructure, warehouses, and equipment.

Finally, if your business is developing new logistics technology, supply chain efficiencies, or greener shipping initiatives, you may be eligible for R&D tax relief, which can reduce corporation tax or provide cash credits.

Action Plan

In a nutshell, you should:

• Review your income and tax allowances.
• Consider maximising your pension and ISA contributions.
• Consider dividend extractions if you’re a business owner.
• Use gifting allowances to reduce inheritance tax exposure.
• Claim all relevant business deductions and capital allowances, especially for equipment, port infrastructure, and fleet upgrades.

Taking action before the tax year-end ensures you don’t miss out on valuable allowances and reliefs.

For tailored tax planning advice relevant to the shipping and logistics sector, visit beatons.co.uk