When is your ‘tax freedom’ day? – the day in the year that the Adam Smith Institute names as when we finally stop earning to pay the tax man and start earning money for ourselves.
The fact that nearly half your income is being taken as tax might come as a bit of a shock – particularly given that basic rate tax is only 20%. This does not, however, account for the impact of VAT and National Insurance which add to the Government take but are rarely considered in the same vein.
Our tax system always seems unfair when you look at your pay packet each month. You work hard to support yourself and your family, but before you even see it, a proportion of your salary disappears. Some of what is left you then save, but when that money makes a profit, the tax man takes another cut.
Even when you spend money, the tax man takes a slice, and after years of investing in a pension, you cash in for your retirement and there is the tax man once again. And finally, when it is time to hand the fruits of your labour over to the next generation, there is the tax man one last time, taking yet another share.
Our Solutions
Tax Planning Service. It is not all bad news however. There are a number of opportunities around for you to minimise the amount of tax you actually have to pay. Across virtually all the different tax regimes, there are allowances and reliefs which you can use to minimise your bill.
There are income tax allowances, capital gains allowances, tax efficient savings plans and gift allowances, all of which, used wisely, can help you keep as much of your hard earned money as possible. All it takes is a little bit of planning to help ensure you do not miss out!
If you are concerned about the amount you are paying in tax, there are things you can do with your money to at least reduce some of the burden.
Our role is to help:
- Ensure you do not lose out on receiving any money back that you are due (e.g. tax relief)
- Make sure you do not ‘miss the boat’ on any time sensitive allowances that are only available each tax year (e.g. utilising your ISA allowance)
- Ensure you don’t pay unnecessary tax when you actually come to spend and enjoy your money (e.g. making sure it is in the right tax wrapper and in the right name)