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An Introduction to Tax Planning 2021

Individuals

This blog provides an overview of most of the major tax planning measures available to help the reader save tax.  

We should all be thinking about tax planning throughout the course of a year, but this year we have all been distracted by the impact of the coronavirus (Covid-19) pandemic on our lives.  As we come out of the pandemic the future for UK taxes contains much uncertainty, so there has never been a more important time to rethink your family’s and/or your company’s tax efficient plans for the future.  We have listed below a few reminders of the issues that you and/or your company may wish to consider.

Many of the tax and investment planning opportunities available require action to be taken before 5 April 2021 and some are more general ideas which may save tax in future years on an ongoing basis.  We have also updated these notes, where possible, for the proposed tax changes as announced in the Spring Budget on 3 March 2021.

Some of the points discussed below are straightforward and will not necessarily require the services of a financial adviser or any input from an accountant. Some ideas though, are more complex and should not be embarked upon without the advice of experts.

The vast majority of the points below do not involve any element of risk. Our policy is not to advise clients on courses of action that may save tax but may involve unacceptable levels of risk.  Similarly, the points below do not include anything involving the use of Trusts.  If you are not averse to risk, or if you wish to utilise Trusts within your tax planning, you will need to engage the services of a financial adviser, preferably an Independent Adviser who is expert in these areas.  If you wish, we can give you the names of a number of people who we can recommend.

These notes do not cover detailed estate planning.  If you are concerned about the impact of Inheritance Tax on your estate we have a department that can advise you specifically on ways to minimise Inheritance Tax and on the use of Trusts if appropriate.  If you would like further information about this, please ask us.

Couples who have formed a civil partnership are treated as a married couple for tax purposes. Where, in these notes, we refer to spouses or married couples, the “tax tip” will apply equally to same sex couples who have formed a civil partnership or now married.

Companies

The approach of a company’s year end is an important time to look at opportunities to save Corporation Tax. You also have the opportunity to structure your business finance in ways that preserve more of the wealth that you create. 

As your accountants, we can work with you to identify any areas where you can minimise your tax liabilities, increase the profitability of your business and maximise your personal wealth.

Financial planning should be an ongoing, year round activity.  

For further advice and any of the topics included within these notes, please contact Desirie Lea or one of our team on 0151 348 8400.