We advise seeing a specialist if you wish to reduce your tax liability but do not want to attempt to understand intricate tax law. We provide tax planning analyses to all of our clients and work to ensure they only pay the minimum amount of tax required by law.
Get in touch with us if you have any questions about how we can help with your tax planning needs. There may be more specialised tax planning guidance and ideas available for your kind or business.
The list of tax hints we’ve provided below offers broad advice on various tax-saving techniques and ought to address some of your tax-related queries.
EFFECTIVE AND LEGAL WAYS TO REDUCE TAXES
Professional accountants can assist customers with estate planning by recommending tax-effective ways to transfer wealth to heirs or charitable organisations.
To lower estate taxes, this may entail establishing trusts or donating assets to customers while they are still alive.
Accountants can assist firms in selecting the most tax-effective corporate structure. Various sorts of businesses are taxed in different ways, and making the proper decision can save you a lot of money in taxes.
In order to avoid double taxation and pass through corporate profits to their personal tax returns, a small business owner, for instance, may benefit from operating as an LLC or S corporation.
EVALUATION OF STOCKS:
Stock should be valued at cost, but if that amount is low, it can also be valued at “net realisable value.” This basically indicates that the stock is valued at the price at which it could be sold on the open market. Reduced closing stock value will result in a $ for £ reduction in taxable profits.
INTRODUCTION OF SPOUSE IN THE BUSINESS:
It is perfectly acceptable to pay your spouse a wage if you are self-employed and they assist with general administration or in any other capacity.
There are some guidelines that must be observed, though, like the amount that should be sent to your spouse and the necessity to retain records of when the payments were received.
If their spouse is a non-taxpayer or a lower rate taxpayer, sole proprietors with higher rate tax responsibilities will benefit greatly from this arrangement. Further tax savings could be achieved by contributing to a pension.