There are many ways to save tax. When we assess your overall financial position, one of the key elements of our planning will be to ensure that your arrangements are tax-efficient.
- Make sure that the married couple’s allowance goes to the person in the highest tax band (Note: only available if one partner was born before 6th April 1935)
- Make sure that non-taxpayers are invested in areas where they either get paid without deduction of tax, or can reclaim any taxes that have been paid
- Make sure that when a couple have investments, the income from those investments is classed as belonging to the partner in the lowest tax band. This can produce significant savings
- For higher and additional rate taxpayers, seek to ensure effective use is made of any tax breaks and gross-paying, tax-free investments
- Maximising pension contributions when relevant, producing instant savings through tax relief on your contributions. Consider also funding pensions for partners
- Errors in the tax calculation. It is fair to say that for people whose tax affairs are simple (i.e. all dealt with through PAYE) errors are neither common nor significant. However for those whose affairs require them to complete self-assessment forms then errors do occur and it is worth having the figures checked.
The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future. This information is based on our understanding of current HMRC rules and practice. Tax rules and allowances are not guaranteed and may change in the future.