How can I save personal Tax?
How can I save personal Tax?
There are no magic wands that one can wave to save tax. Tax savings can only be achieved with healthy tax planning that is done well in advance. Personal tax is one of the most complex area of taxation where expertise and experience both matters. We at Affinity Associates have a team of qualified and experienced Chartered Accountants with sound knowledge about tax planning. Our team will provide comprehensive advice on various aspects of personal tax making sure that maximum tax saving strategy is applied. Although tax planning varies as per individual circumstances, you can achieve tax savings mainly by doing below:
- Diverting your trading income to own company – This will require incorporating your business. It can be a stressful process and needs thorough knowledge regarding company formations. Our experienced staff can guide you in detail on how to manage this transition.
- Optimize the drawings pattern from own company between salary and dividends – Every penny matters and with right planning, much savings can be achieved.
- Making tax savings investments – If you are higher rate taxpayer and are willing to make investments with spare income, there are various options that we can suggest.
- Inheritance tax planning – This is probably once in lifetime event. Thus, many of us do not even look into it unless we are forced to. With appropriate planning in advance, you can manage maximum savings for your family. We have proficient staff that can guide you.
- Capital Gains – Usually these are normal as many of us nowadays deal in stock market and intend to invest in buy-to-let properties or even commercial properties. With right planning in advance, you can maximize your tax savings.