Surprisingly many people do not consider themselves in a position to benefit from tax
planning. In the past many have viewed “tax planning” either with suspicion or scepticism,
especially as it’s been in the spotlight for all the wrong reasons.
The reality is that tax planning is something everyone can and should be doing.
Next to living expenses, taxes of various sorts will be an individual’s highest outgoing. And yet statistically, it’s the one area that the majority of people do not apply any planning to.
We plan the life out of our household expenses, checking to make sure we aren’t overpaying on utilities, but we just assume that our tax bills are what they are!
I’m a regular PAYE person, surely there’s isn’t much I can do about my tax?
High income earners need to be aware of the £100,000 and £150,000 thresholds, as there are various strategies that can help to stay below these
The rate of tax on taxable dividend income (ie from shares not held in an ISA or pension fund) has risen from 6 April 2016 and the notional 10% tax credit is now abolished.
A new £2,000 nil rate band on dividend income has been introduced so the exact rate of tax anyone pays on their dividend income will depend on the amount they receive and their other income. With appropriate planning and care it is possible to structure Dividend payments and reduce the tax burden.
Here at Ten Forward, we have been providing solutions for many clients that meet these two goals.
Owning your own property is relatively lightly taxed and in most cases your main home is exempt from Capital Gains Tax. However, you may be liable to capital gains tax if you own a second home, investment properties, land, business premises or use your home to generate income by renting it out, for example. Planning for income tax on property is vital, as the tax treatment can be complex.
If you let a property and have significant equity (i.e. it is worth much more than the mortgage secured on it) you may be able to reduce the tax you will pay on rental profits by releasing equity in the property. In certain circumstances, property owners can increase their borrowing against a property and continue to claim tax relief on the loan interest.
Up until 6 April 2017, this relief is given by deducting the interest from the letting profit. From 2017/18 onwards, this method of relief will be cut back and from April 2020 relief on the interest will be limited to the basic rate of tax.
With restrictions on loan interest deductions, in some circumstances there may be tax advantages in forming a limited company to take over the running of a property letting business.
These are just a few of the areas you can look out for.
We provide an all-round solutions for business owners that can help reduce your personal tax liabilities in a sensible structured manner.
We can guide you through the process. It’s not difficult. Even better, a quick review of your position
won’t cost you anything but may turn up some surprising results!
Here’s what we do…
We sit down and talk about everything, your job, your savings, your plans, your family and what your goals are.
We delve into your finance in more detail.
We provide you with solutions in an advice document.
We help you implement the chosen solution. We can hand hold you through the entire process.
Once completed we review and provide additional options.
Because things change.