Timing is everything when it comes to finding ways to pay less tax
We recently posted an article pointing out the value of checking out the tax advantages of investing in new plant and equipment. We stressed the importance of timing as when it comes to finding ways to pay less tax, timing is everything.
But this is just one matter that should be considered before the end of the current tax year. Every business owner and individual with significant earnings should take time out to consider their planning options before 6 April 2021.
The 5th April may not seem to be a particularly important day but at midnight on that day 90% of your options to make beneficial changes to your financial circumstances for 2020-21 disappear.
We all have obligations to abide by the law but it is perfectly acceptable to organise your affairs to retain as much as you can of your hard-won earnings and still stay within the terms of the UK tax code.
Your planning options for 2020-21 fall into two main groups:
- Strategies to reduce the impact of taxation on your profits and earnings and
- Strategies to avoid stepping into one or more of the tax “bear traps” that await the unwary tax payer.
Every business is different, and every individual has unique financial circumstances. For these reasons it is dangerous to generalise about the possible benefits of tax planning; which is why we recommend year-end tax planning to all our clients and business prospects.
Timing, as the title of this article asserts, really is everything in this regard. If you have a business, or are concerned by the amount of tax you are paying, please call and organise a conversation with us so that we can consider your options for 2020-21.
But do it soon…….the clock is ticking.
About Karen Jones
Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.
With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.
Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”
Karen’s specialist skills:
- Personal Taxation
- Tax Efficient Planning
- Trust Administration