Planning to save tax may seem like a luxury buy in these days of rising prices and recovering from COVID fallout.
And yet tax planning is of real value in these uncertain times.
Whether your income and profits are increasing or reducing, there will be tax consequences. And unfortunately, to mitigate your tax footprint you will need to act in a timely manner. Wait too long and opportunities may be lost.
We are all entitled to use the present tax legislation to minimise our tax payments. What we are not entitled to do is evade tax by adopting strategies that stretch the credibility of laws set by parliament beyond those originally intended.
Penalties for engaging in tax schemes that would be challenged by HMRC as tax evasion can be punitive and in some cases are treated as fraud.
Tax planning achieves two major outcomes:
- It reveals one-off tax saving opportunities, but it also reveals ongoing tax savings; savings that you will reap for many years with no further investment in professional advice.
- Without straying into tax evasion, tax planning will also ensure you pay the minimum tax applicable to your circumstances, and no more…
HMRC are tax collectors. They are obliged to publish details of any tax savings options open to you, but under no obligation to tell you. A review of your personal and business circumstances is required to achieve this, and this is what tax planning advice will provide.
If you have concerns about your tax position in the coming tax year, 2022-23, pick up the phone. Let’s discuss your options in the round and see if an investment in tax planning would be of benefit.