Tax Planning And Saving Approved by HMRC
Let us show you how investments into HMRC recognised investments and approved plans can assist you in reducing your tax liability and retain more of your wealth. Last year saw a number of high profile tax cases where celebrities were investigated by HMRC where they had made investments into “tax planning schemes”.
Tax planning schemes, such as those detailed in the recent Paradise Papers, employed by the very wealthy and certain celebrities, whilst being legal, were publically judged and deemed to be immoral and unethical. Not only were they complex and costly, it highlighted that access to these schemes were for the masses.
However, there are a number of HMRC approved investments that qualify for or provide, tax credit and the choice is larger than you might imagine. With most investors utilising ISAs for tax-efficient investment, because of the tax-free returns, these investments don’t provide any Corporation or Income tax relief, whereas other investments do.
A recent meeting with a tradesman (husband and wife Ltd Co), who also had a small property portfolio; meant his rental income took him into 40% income tax band. He was looking at how he could extract money from his company without the income tax liability.
We provided two solutions for his consideration both of which allowed him to transfer money from his business to his personal ownership in a tax-efficient way. One using pensions and a reduction in his corporation tax and the other an investment strategy providing upfront tax relief.
Following our advice, we have provided a number of strategies which allow him to regularly extract money tax efficiently from his business, some of which he can access tax-free after a short investment timeframe, some on a longer timeframe. We even showed him where to fill in the boxes on his tax return!
So why not speak to us and find out how you could save or reclaim your income tax; but be quick as the tax year clock is running.