Why is tax planning so important?

Ever feel like you pay too much tax? As more and more taxpayers enjoy entrepreneurial success and greater incomes, they may also find that they are paying too much tax.

The UK’s ever-changing tax legislation means that businesses and individuals need to think very carefully about tax planning.

If you have never taken tax advice before to create an effective tax plan, you may be paying much more than you need to.

Tax planning isn’t about avoiding tax but instead taking advantage of the many tax-saving opportunities, allowances and reliefs available to you and your business – many of which go unclaimed each year.

By working with experienced tax planners, you could save a lot of money and reduce the stress of large, unexpected tax bills.

The importance of tax planning for businesses

For those running a business, the amount of tax paid will always be directly linked to the amount of net profit you have earned.

Effective tax planning can ensure your business is running tax efficiently, and successfully, in the long-term.

In many cases, it is possible to achieve tax savings by:

  • Establishing the right business structure.
  • Maximising the allowances on qualifying capital expenditure.
  • Maximising the deductions for allowable expenditure.
  • Ensuring that any withdrawals from the business are made in the most tax-efficient way.
  • Structuring shareholdings and borrowings correctly.

The importance of tax planning for individuals

Effective personal tax planning is equally important for individuals to ensure they take advantage of the allowances and tax-saving opportunities available.

It is possible to save money on personal taxes by:

  • Boosting your pension.
  • Disposing of shares and assets tax efficiently.
  • Making the most of dividends.
  • Maximising the use of allowances, reliefs and exemptions.
  • Using discounted Gift Trusts/AIM Investments.
  • Utilising tax-efficient investments, including VCTs and EISs.
  • Reducing Inheritance Tax liabilities through wills and estate planning.
  • Investing in woodlands.

In Cumbria:

Here to help

If your last tax bill was a shock to the system, it’s time to start thinking about how you can reduce your next one today.

At Lamont Pridmore, our tax specialists have a proven track record of helping businesses and individuals minimise their tax bills. In some cases, we might even be able to reduce your tax liabilities to nil.

Our approach has nothing to do with tax avoidance, just good housekeeping to ensure you can legally claim the allowances and reliefs you are entitled to and that you’ve considered the tax implications of every important decision.

Get in touch today to find out how we can help and request a free copy of our ‘10 Tips to Reduce Your Tax Bill’ by calling 0800 234 6978 or emailing info@lamontpridmore.co.uk.