Her Majesty’s Revenue and Customs affords everyone the opportunity to arrange their taxes in a manner that suits them.
Here are four areas where tax savings can be made.
1. Are you making full use of government sponsored tax breaks on
There are tax savings to be made on Individual Savings Accounts, Venture Capital Trusts, and Enterprise Investment Scheme. Investing in a pension quite often allows you to save money with 40% tax relief today and pay tax on those savings at basic rate in the future.
2. Ensure that your business structure is right.
The tax system changes from time to time. It is therefore wise to make sure that you have a legal structure that is favoured by the tax system. There are a lot of pros and cons associated with taxes. Do not be shy seek tax advice.
3. Making a will, and having an Inheritance Tax plan is essential.
The British tax system imposes tax liabilities on individuals when they are alive as well as when they have died. The current inheritance tax threshold is £325,000. If you have assets totalling over £325,000 you will need help to make good use of your allowances.
4. Take good professional advice on your taxes.
You should always take the time to clarify what the Inland Revenue says. Frequently they report how they would like the tax rules to work, not how they actually do work.
Take the time to consult a good accountant or tax advisor.