Harrison Hinchliffe & co are one of the most trusted and experienced tax planning companies within Manchester and Glossop, providing a full tax planning overview. As far as personal finance goes, you want to make sure you are not paying too much tax and also not too little, it is essential that your tax plans are in order.
We design bespoke strategies in line with the UK Tax Law to maximise your income and minimise your tax liability.
Planning income tax — earnings
Income tax planning can offer significant savings in two areas.
Your employer may offer various employee benefits, some of which — such as various employee incentive schemes — offer tax advantages. Your income tax planning should include assessing the value of these benefits to you and their tax effects. Planning for income tax is also important for company cars, which can involve a sizeable tax charge.
Equally, planning for income tax should carefully consider the value and tax consequences of tax relief on pension contributions — whether these are contributions made by your employer, yourself or both of you. A final salary occupational pension scheme can be a particularly valuable perk.
Basic income tax planning should include keeping adequate records and preparing for income tax returns. The self-employed, company directors, high earning employees and anyone with complex tax affairs must complete a self-assessment tax return.
Planning for income tax on savings
Income tax planning should take into account the income tax treatment of savings. Simple income tax planning steps can include using ISAs or transferring savings to your spouse to eliminate or reduce income tax (and capital gains tax).
Individuals with a high income or large savings may want to consider other options. There are substantial tax breaks for investing in venture capital trusts or unquoted shares that qualify under the Enterprise Investment Scheme. Making pension contributions on behalf of your children can also offer tax advantages.
Owning your own property is relatively lightly taxed, though you are likely to pay stamp duty when you purchase a property as well as being liable to council tax. Unlike most other investments, 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 and you will also need to consider your exposure to capital gains tax.
For effective personal and income tax planning, you should take professional advice on your own circumstances.