Tax Planning, the Art of
Ask a lot of people about their future financial plans, and you may hear a lot about possible expenses at home and work, such as childcare, tuition fees, cars, and mortgages. And rightly so, these can be big expenses. However, what a lot of people don’t consider is that ‘Tax’ can be the biggest recurring expense that you will ever experience, and many fail to see and understand the importance of proper planning, and when they do, they miss the link between tax planning and good financial advice. So ask yourself, have you got tax planning down to an art?
The idea of tax planning is that you retain as much of your hard earned income as possible, whilst doing this legally, and there are a number of tools that can help you achieve this;
- Timing income, purchases, and expenditure
- Selection of investments and Pensions
- Claiming deductions
- Utilising tax law provisions
Looking at the above, how much of this do you use effectively? And if the answer is actually a lot, then how long do you spend ensuring that you are up to date with the latest legislation that, as we all know has a nasty habit of changing regularly and is becoming an ever-hotter topic.
As hinted at in the Autumn Statement, there is also the ever increasing chance that you may have to justify your ‘self-employed’ status to ensure that you don’t experience a significant change in your tax position, The Chancellor “At the Budget we committed to removing the tax benefits of disguised earnings for employees, and I am now going to do the same for the self-employed and employers” - Are you prepared for this?
If the answer is no to any of the above questions, or if you are unsure of how to make the most of any of the benefits, then seeking financial advice would be of benefit to you. With effective advice the potential savings could be significant. Whether it be making sure that you are using your pension contributions to withdraw retained funds from your business efficiently, or writing the expense off your Corporation Tax bill and making sure that you investing in the best tax efficient investments.
Pension specialists at our sister company Contractor Wealth Management specialise in helping contractors, and aim to build a continuing relationship with you to ensure that you are making the most of the many efficient ways in which you are able to run your own business, so please don’t wait until the last minute and lose potential benefits, let a specialist draw a clear picture for you on your tax planning today.
The team at Contractor Wealth understand that whilst planning for the future and reducing your tax bills, that you also need to maintain some flexibility over your contributions. If you decide to arrange your pension through Contractor Wealth you will have a dedicated Financial Adviser who will work with you throughout the whole process to ensure all of your financial needs are covered. They offer impartial advice to ensure that the plan put in place for your future is best to suit your individual needs and circumstances.
The value of investments may fall as well as rise and past performance is not a guide to future returns.
Financial advice is given by Contractor Wealth Management Limited which is an appointed representative of Intrinsic Mortgage Planning Limited and of Intrinsic Financial Planning Limited who are authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA Register (http://www.fca.org.uk/register) under reference 440703 and 440718.