Have You Got Your Tax Plan In Place?

When you think about your financial future, it is important to put tax planning at its very heart. Even before you write your tax plan down, you need to factor in the implications of your decisions ...

Getting your tax plan right from the start avoids any nasty surprises and can even reduce the amount of tax you pay which, in turn, increases your disposable income. You must understand the taxes that apply to you, as well as your allowances.

As an example, property investments are only subject to Capital Gains Tax when you sell or transfer a property, so do you understand the best way to handle that so you can minimise your tax liabilities?

All UK taxpayers have a yearly allowance on taxes such as Income Tax and Capital Gains Tax as well as many others. Firstly, you should look at these allowances to ensure you use them fully. Good usage of allowances means you reduce your tax burden.

Most people want to invest money. This could be in something like an ISA, a pension or property investments. There are many different ways to invest. However, everyone's finances are unique and while there are general guidelines we could all follow, the bigger the investment, the higher the potential tax savings and, of course, the greater the need for good tax planning and advice.

Some ways to keep your tax bill to a minimum include:

- Ensure you're on the right tax code

  • Claim full relief on pension contributions
  • Look at the tax benefits of being married or in a civil partnership
  • Charitable donations can attract tax relief using Gift Aid
  • Cash in and reinvest to maximise your Capital Gains Tax allowance

    And many, many more!

    Business owners should also look at their potential tax liabilities. Planning before a business is set up is ideal, but the overall business structure can affect your tax liabilities.

    Put tax planning at the very heart of your financial future and ensure you get the maximum return on your investments, whilst paying the minimum tax.

    If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.