The UK is known for having one of the most complicated tax systems in the world, we have income tax, capital gains tax, corporation tax, VAT; that’s without even entering the realm of pensions where the situation becomes even more complex. This can seem quite a gloomy position, however with careful planning everyone can make sure they only pay the tax that is due and utilise in full all the reliefs available.
We work with clients from every walk of life, and from every occupation. Our business owner clients in particular are always keen to consider tax planning solutions to reduce their annual liability.
We worked with a new client recently who due to his busy schedule running his business had not had a chance to properly sit down and look at practical steps he could take to reduce his tax liabilities. For many years any excess income had been cultivated back into his company, but not he was beginning to see the fruits of his labour. We discussed with him the use of pension contributions and other investment vehicles that offered immediate tax relief such as VCTs and EISs. By working closely with the client’s accountant, we were able to come up with a strategy that not only enabled him to reduce his income tax liability, but increase his own private savings to help him achieve his retirement goals. There is no magic bullet for tax planning and what works for one client will not be appropriate for another, that is why we feel it is vital to sit down and fully analyse your position and understand what is important to you.