What happens if I need to get my tax affairs in order?

Lamont Pridmore - Accountants

The ever-changing nature of taxation in recent years, particularly in areas such as property, capital expenditure, motor vehicles and the changes to the taxation of dividends, means that the amount owed by an individual or a company can change drastically from year-to-year.  

With careful tax planning and preparation in advance of your financial year end or any significant transactions, you can not only get a clearer view of your liabilities but also reduce the amount you pay in tax.  

For those running a business, the amount of tax paid will always be linked to the amount of net profit you have earned. 

With this in mind, effective tax planning is vital to ensure that your business is running tax efficiently, with improved cash flow, and so successfully, in the long-term.

There are several ways that a business can influence the amount of tax they pay, such as changing the structure of the business, maximising the allowances and deductions on qualifying capital expenditure, maximising pension contributions and ensuring that any withdrawals from the business are made in the most tax-efficient way.

In particular, businesses can currently benefit from a new industrial buildings allowance, as well as an enhanced capital allowance of up to £1 million on investments in plant and machinery. The UK also continues to offer the excellent R&D tax credit scheme, which was only used by 40,000 businesses last year, despite offering tax relief of 33p for every pound spent on R&D activities. 

Effective tax planning is equally important for individuals – who can easily get caught out if they do not take advantage of the allowances and tax-saving opportunities available to them.

To minimise liabilities individuals, should seek to make use of personal allowances, and basic rate bands, review their pension arrangements, capital gains and inheritance tax allowances and make the most of tax-efficient borrowings and interest relief.

But what if you are already facing a large bill this year, before your tax planning ahead of the end of the year? 

At Lamont Pridmore, the team review your lifetime tax affairs in a holistic way, taking into account both personal and business taxes, as well as creating a Life Wealth Plan for your assets outside the business. 

Letters and notices from HMRC can seem very daunting at first, but it pays to talk with the tax authority at the earliest opportunity as you may be able to make arrangements to pay the bill off over an extended period, which could help you to avoid additional penalties for late payment of taxes.

Lamont Pridmore’s tax specialists have a proven track record of helping businesses and individuals to minimise their tax bills.  Last year, their expert tax planning team saved their clients over £8m. Get in touch today to find out how they can help by calling 0800 234 6978 or email info@lamontpridmore.co.uk.