Financial tax planning for Businesses & Individuals

by Vidit Agarwal Marketing Director

Tax planning:

Tax is the liability from your asset that is to be paid to the government. Over-taxation is a problem everywhere as a generalized system is imposed and the society is divided into various taxation brackets. Some perfectly fit in, but others don’t and end people or organization ends up paying more tax. The government, being fully aware of that has given many reliefs. The lack of knowledge or inadequate knowledge consumes so much of our revenues, which hits our businesses badly. On a daily basis, it is a time-consuming task to keep monitoring and updating their financial data based on current market trends.

This is where an accountant comes in handy. An accountant, who is fully dedicated to financial accounting and management, can make sure that your yoke is reduced by half by providing indispensable service called “Tax Planning”. Every tax in the United Kingdom has its relief and gifts which are quite complex. The relief that the government provides is quite perplexing as the factors that influence varies majorly. There are too many forms for availing certain benefits and complex calculations. It would take our entire time to sit and deduce it, and so leaving it to an accountant, who is not only dedicated but more experienced with the current situation to provide the best quality service, is the wisest decision.

Council tax, Inheritance tax are some of the taxes that are quite heavily priced and has amendments keep taking place like the Inheritance tax which had a raise in the personal allowance of additional £100,000 to the existing £325,000. The additional tax-free slab introduced this year has a lot of restrictions like it works for those assets, where the deceased has lived or used once in his/her lifetime. The tax is so dreadful that if certain criteria are not met, the successors of the deceased end paying the dead man’s debts. It is essentially brought to bring about socioeconomic equity in the country, but as always there are loopholes which accountants can guide to save a lot in taxes.

Inheritance tax bills can be reduced by things like gifts which grant a certain amount of relief. Accountants can explain and show how to transfer the maximum wealth to the indicated beneficiary without pledging a considerable amount to HMRC. Nil rate bands are the determinants of your liabilities, and it keeps changing every seven years. An expert is indeed needed to solve the change in the system and find the best for you. It was reported that the HMRC acquired a sum of £4.6 billion in the tax year 2015-16. The mass figure depicts the lack of knowledge on how to downsize your property during one’s lifetime. This figure is an eye opener that the accountants are a necessary investment for financial security and welfare. An accountant will possess the acumen on how to evade the tax by using tricks but still adhering to the rules. They help us in playing the game safe. You can get in touch with Chartered Accountants Guildford or Chartered Accountants Milton Keynes.