What happens if I overlook the importance of tax planning?

Lamont Pridmore - Accountants

In today’s world of increasing wealth, unprecedented entrepreneurial success and ever-changing tax legislation, business and individuals need to think very carefully about tax planning.

Without thinking ahead and taking advantage of the many tax saving opportunities available to them, businesses and individuals will end up paying much more in tax than they need to – which seems silly when seeking specialist tax planning advice could save them an awful lot of money.

The importance of tax planning for businesses

For those running a business, the amount of tax paid will always be directly linked to the amount of profit a firm turns over.

With this in mind, effective tax planning is absolutely vital to ensuring that your business is running efficiently and is profitable – and ultimately successful – in the long-term.

In many cases, it is possible to achieve tax savings by:

  • Establishing the right business set up.
  • Maximising the allowances on qualifying capital expenditure.
  • Maximising the deductions for allowable expenditure.
  • Ensuring that any withdrawals from the business are made in the most tax-efficient way.
  • Structuring shareholdings and borrowings correctly.

The importance of tax planning for individuals

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.

It is possible to save money on personal taxes by:

  • Maximising the benefits of your, and your spouse or civil partner’s, personal allowances and basic rate bands.
  • Making best use of your tax-free benefits and salary sacrifice schemes.
  • Owning the most tax-efficient motor vehicle for you and your family.
  • Keeping on top of appropriate pension contributions for you and your family.
  • Making the most of tax-efficient borrowings and interest relief.

Need advice?

If your last tax bill was a shock to the system, it’s time to start thinking about how you can reduce your next one today.

At Lamont Pridmore, our tax specialists have a proven track record of helping businesses and individuals to minimise their tax bills and, in some cases, we might even be able to reduce our clients’ tax liabilities to nil. Get in touch today to find out how we can help.