It was Benjamin Franklin who said that few things in life are as certain as death and taxes.
All of us understand the need to pay taxes it is, after all, what supports our public services like the NHS, but many of us would rather not pay more tax than we need to.
Nevertheless, many of us do, often without realising it.
The latest announcements by the Chancellor Jeremy Hunt mean it is all the more important to conduct careful, regular tax planning before the end of each tax year on April 5.
While he may not have technically increased the rate at which many of us pay tax, his decision to freeze personal tax allowances and reduce the threshold for the Income Tax Additional Rate means that many taxpayers will face higher bills in future.
As wages and the value of assets rise with inflation many of these allowances, thresholds and exemptions won’t rise with them and, therefore, more of your earnings and wealth will become taxable.
For some, it might even push them into higher tax bands, which have a substantial impact on take-home pay at the same time as many of us get to grips with rising costs and higher interest rates.
While it might seem all doom and gloom, many steps can be taken to manage your tax liabilities:
- Maximising the benefits of your, and your spouse’s or civil partner’s, personal allowances and basic rate bands.
- Making the best use of tax-free benefits and salary sacrifice schemes.
- Making the most of tax-efficient borrowings and interest relief.
- Keeping on top of appropriate pension contributions for you and your family.
- Investing your wealth wisely using tax-efficient schemes.
- Owning the most tax-efficient motor vehicle for you and your family.
- Ensuring the eventual sale of any businesses or shareholdings you own are tax efficient.
Here to help
Don’t let your next tax bill give you a scare. Take the time now to ensure your next and all future tax bills reflect the best strategy for building wealth.
Our tax specialists have a proven track record of helping businesses and individuals minimise their tax bills – regularly saving our clients millions of pounds of tax each year using existing tax reliefs and allowances.
Our approach is about good housekeeping to ensure you can make more of the money you earn and ensure that you’ve considered the tax implications of every important decision.
Get in touch today to find out how we can help you by calling 0800 234 6978 or emailing info@lamontpridmore.co.uk
