The ‘tax pie’ and how to keep as much of it as possible for you and your family.
Tax planning is all about understanding the personal and business taxes you are liable to pay, and looking at ways to minimise them. In this way, you can help maximise your net income, creating opportunities to save for the current and future needs of your family and your business.
Tax seems to be taking an ever-increasing slice of the nation’s income. Estimates for 2005/06 put the UK’s total tax take at approximately £1 per hour, per person.
Our ‘tax pie’ diagram (below) shows how your wealth can be diminished by both taxes out of income, and those taxes payable on death or a capital transaction, leaving one slice for you to spend or save. If you wish to ensure that this slice for your personal use is as large as possible, then we can help you.
Albert Einstein once famously said that ‘the hardest thing in the world to understand is income tax’. But don’t let complexity deter you from a simple goal: keeping your taxes as low as possible. As accountants our role includes not only preparing financial statements and tax returns but also working with you to ensure that both the periodic taxes and the taxes out of income are at the lowest possible level. Only by achieving this can you retain the biggest slice of your wealth to spend or save.
This Guide is designed to highlight a range of planning opportunities, some of which expire on 5 April 2006. In particular, do please contact us to discuss:
- making the most of tax-free opportunities
- keeping tax rates as low as possible across the family
- developing a plan for tax-efficient profit extraction
- keeping business taxes to a minimum
- minimising the tax on the sale of your business
- tax efficient remuneration package
- reducing national insurance costs
- reducing the cost of company cars
- tax-efficient savings
- reducing the tax on your estate
- minimising tax on gifts
- planning to reduce capital gains tax
- planning to minimise VAT liabilities.
