A DIRECTOR at Smith & Williamson, the financial services group with a branch in Salisbury, has come up with ten top tax tips for businesses in the run up to the April 5 tax year end.

Andrew Lines says that owner-managers are uniquely placed to cut their tax bills and he gives the following advice:

Aim for a tax efficient mix of salary, dividends and bonuses, remembering that from April 6 2003, the additional one per cent employer's national insurance contribution (NIC) and one per cent employees' NIC (payable on all earnings without limit) take effect.

Consider further pension contributions.

Don't drive the extra mile. Extra business miles no longer reduce the tax charge on a company car.

Maximise allowances on capital expenditure. If planning to buy new equipment, consider buying it before the year end to accelerate tax relief, remembering that 100 per cent first year allowances on information technology expenditure for small businesses end on March 31 2003.

Consider the timing on the sale of assets subject to capital gains tax (CGT). It may be worth delaying the sale until after 5 April 2003.

Maximise family net income. Benefit from spouse's CGT and income tax allowances by transferring shares or other assets to lower earning spouse.

Check IR35 will not affect your business. Mr Lines says the Inland Revenue introduced this legislation to prevent intermediary companies or partnerships being used to avoid PAYE.

IT and engineering would be most familiar with it, he said.

It is particularly relevant to those with just a few clients and if affected, they should consider drawing a bonus before April 5.

Consider inheritance tax- free gifts. Each person can make gifts of £3,000 per tax year without giving rise to inheritance tax even if you die within seven years.

Submit a claim for the new Child Tax Credits and Working Tax Credits. These come into effect on April 6, so if you are eligible, get your form in promptly.

Give to charity and cut your tax bill.