Effective tax planning is essential for individuals and businesses to minimise tax liability legally whilst maximising available reliefs and allowances.
Why Tax Planning Matters
Proactive tax planning helps you use all available allowances, deductions, and exemptions. The key is planning throughout the year, not just at year-end.
Key Tax Planning Areas
1. Pension Contributions
One of the most tax-efficient ways to save. You receive tax relief at your marginal rate whilst building your retirement fund. Check current annual allowances and limits on the GOV.UK pension tax page.
2. ISAs and Tax-Free Savings
ISAs shelter investment income and gains from tax. Review current allowances at GOV.UK ISAs page.
3. Capital Gains Tax Planning
Time asset disposals strategically to use annual exemptions. Spouse transfers can double available exemptions. See HMRC Capital Gains Tax guidance for current rates and allowances.
4. Dividend vs Salary Planning
For company directors, balancing salary and dividends optimises tax efficiency. Current rates and allowances are available on GOV.UK tax on dividends page.
Business Tax Planning
Key areas for businesses:
- Capital Allowances: Claim relief on qualifying business assets
- R&D Tax Credits: Valuable relief for innovation activities
- Making Tax Digital: Ensure digital compliance
- Employment Allowances: Reduce employer National Insurance costs
For current rates, thresholds, and detailed information, visit the official HMRC website.
How We Can Help
Optima Accountancy provides tailored tax planning services to help you:
- Identify tax-saving opportunities for your situation
- Implement effective strategies
- Stay compliant with HMRC requirements
- Plan proactively throughout the year
Contact us for a personalised tax planning consultation.