Tax planing can be very complex. It can also be very easy. We specialise in making it easy for you to understand just how tax planning can benefit you, and any potential risks involved.
There are various tax elections and legislative options available to the taxpayer, but understanding how they fit together and can benefit you or your business is something only gained by long experience in dealing with the many intricate aspects of taxation. And a lot of lateral thinking. And being able to see how to avoid the pitfalls.
We have that knowledge and experience.
But we also look at the total picture, not just how one small aspect can affect you.
We don’t just recommend one course of action without considering how it affects other aspects of your financial position. A proposal might save you Income Tax, but we think about how it affects your Capital Gains Tax and Inheritance position. How does the proposal interact with your liability to your children’s student loans; with your CSA assessment; or, with your opportunity to claim tax credits?
You need us to be one step ahead. We are often two steps ahead.
A client wanted to incorporate but didn’t know how, and his previous agents had persuaded him not to. We explained the huge tax benefits and quantified the potential saving for him. We incorporated the company, transferred PAYE and VAT registrations and prepared all the necessary paperwork so that the client had nothing to do but sign a few forms. The client is saving over £35,000 per year in tax.
Another client had substantial capital expenditure incurred over a number of years on which capital allowances were being claimed. As part of our normal work for the client, we identified a major change in tax legislation which could potentially seriously affect the tax deductions available to the business. We also identified a major one-off tax planning opportunity available to the client as a result of the same changes in the tax law. We worked with the client to identify the potential tax cost and potential tax saving as a result of the change in the law. We turned a likely tax cost of £20,000 pa into a one-off tax saving of nearly £50,000, and advised on how to reduce the future tax cost through some simple accounting steps.