50 tax tips 2014/15
Thursday, 28 August 2014
50 tax tips 2014/15
Taxes, as we know, are one of the two great inevitables in life, but we can manage our financial affairs to minimise the impact of tax on ourselves, our family and our business.
In fact, the Government actually encourages us to make the most of the reliefs and allowances available.
While aggressive tax avoidance is now being targeted by HM Revenue & Customs, you can still ensure your own financial well-being by saving tax wherever possible.
When considering any tax planning there are four important points to bear in mind:
1. If a scheme sounds too good to be true, it probably is.In particular, do not get involved in a tax scheme that relies on the non-declaration of income or capital gains, as that would be illegal. A general anti-abuse rule counteracts tax advantages arising from abusive tax avoidance arrangements.
2. Bear in mind that the tax effect of a decision is only one element to consider.The commercial, practical and financial implications of the decision should always be taken into account. For example, you should not let the tax tail wag the investment dog.
3. Tax planning can be undone by not submitting the correct tax information on time, or not paying your tax liabilities by the due date.In either case HMRC will levy penalties which could exceed the tax due, or wipe out any tax savings made. You could also find HMRC pays closer attention to your tax affairs in the future.
4. Tax rules and rates change regularly.The tax regime is subject to frequent changes, so you need to review your financial situation regularly. Last year’s tax saving idea could be counter-productive this year.
Green Financial do not get involved in any tax planning 'schemes' that are not fully endorsed by HMRC. If you want speculative, close to the line tax planning, we are not the right company for you.
If you'd like 50 tried and tested tax tips, please download our free guide: