Tax Planning and Compliance
We recognise that navigating the complexities of personal tax planning and compliance can be daunting… That’s why our dedicated team of professionals at Bevan Buckland are here to provide expert guidance and support every step of the way.
Whether you’re an individual taxpayer, a small business owner, or a high-net-worth individual, we have the knowledge and experience to help you effectively manage your tax obligations whilst maximising your financial outcomes.
What Our personal tax planning and compliance service includes
We take a personalised approach to tax planning, crafting strategies that are specifically tailored to your circumstances and financial goals. Whether you're looking to minimise your tax liabilities, optimise your investment portfolio, or plan for retirement, we'll work closely with you to develop a comprehensive tax plan that meets your needs.
Our team of tax experts are committed to ensuring that your tax returns are prepared accurately and filed on time. We stay up to date on the latest tax laws and regulations to ensure compliance and minimise the risk of audits or penalties. Our attention to detail and commitment to excellence ensures you can trust our team to handle your tax preparation needs with precision and care.
Planning for retirement and managing your estate is critical to your overall financial strategy. Our experts can help you navigate these complex areas, guiding retirement savings options, pension planning, and estate tax minimisation strategies. Whether you're nearing retirement age or planning for the future, we'll work with you to develop a comprehensive plan that ensures your financial security and protects your assets for future generations.
How personal tax planning and compliance will benefit you
- Maximise Savings: By implementing effective tax planning strategies, you can uncover deductions and credits to lower your taxable income, ultimately saving you money.
- Avoid Penalties: Remaining compliant with tax regulations on time ensures you steer clear of costly fines and interest, safeguarding your financial well-being.
- Financial Clarity: Organised tax planning helps you understand your financial situation clearly, empowering you to make informed decisions.
- Future Preparedness: Proactive tax strategies aren’t just about the present; they’re about securing your financial future, including retirement and investment aspirations.
- Peace of Mind: Entrusting your tax matters to professionals alleviates stress and provides a sense of security, freeing your time to focus on personal and professional growth.
Understanding Self-Assessment Tax Returns
Self-Assessment is a system employed by HM Revenue and Customs (HMRC) in the UK to collect income tax from individuals and businesses. It is a way for taxpayers to report their income, gains, and other financial details, enabling HMRC to calculate the correct amount of tax owed.
With the personal allowance frozen until 2027-28, it is important to understand how this affects you and whether you now fall into Self-Assessment. The personal allowance is the amount of income you can earn before you start paying income tax. This freeze means that as your income rises with inflation, you might find yourself exceeding the personal allowance threshold and therefore having an income tax liability.
Who Needs to Complete a Self-Assessment Tax Return?
- Self-Employed Individuals: If you run a business as a sole trader, you must complete a Self-Assessment tax return if you have earned over £1,000; this includes freelancers, contractors, and small business owners.
- Partners: If you are, or were, a partner in a business partnership in the previous tax year, you must complete a Self-Assessment tax return.
- Landlords: If you receive more than £1,000 of rental income from a property you own, you must notify HMRC, however this can be done by contacting HMRC directly, rather than via Self-Assessment. If the income received is greater than £2,500, this must be reported on your Self-Assessment tax return.
- High Earners: If your total annual taxable income is over £100,000, you must complete a Self-Assessment tax return, regardless of your source of income (note this threshold increases to £150,000 for 2023/24 but you may still need to file a return due to other reasons).
- Savers: If your income from savings and investments (e.g., dividend income) exceeds £10,000, you must report this to HMRC on your Self-Assessment tax return. Please note, however, that savings/dividend income less than £10,000 may generate a tax liability which will need to be reported to HMRC, however this can be done informally by speaking to HMRC, rather than by completing a Self-Assessment return.
- High-Income Child Benefit Charge Payers: If the High-Income Child Benefit Charge applies to you, then you must complete a Self-Assessment tax return.
- Those with Complex Finances: If your financial situation is more complex due to investment income, multiple sources of income, or significant capital gains, a Self-Assessment return may be required.
- Those receiving a pension: Retired individuals have previously not needed to prepare a tax return may find that their pensions increase due to inflation. As the personal allowance is capped, this increase may exceed the threshold and mean they now must prepare a self-assessment tax return.
Tips for completing the tax return accurately and on time:
- Stay Informed: Keep up to date with changes in tax policy, as they can have a significant impact on your financial situation. Understanding the personal allowance threshold is crucial.
- Record Keeping: Maintain accurate financial records, including income, expenses, and relevant deductions. Good record-keeping makes it easier to complete your Self-Assesment return accurately.
- Seek Professional Advice: If you need clarification about your tax obligations or assistance navigating the Self-Assessment process, consider consulting a tax advisor or an accountant. They can help you optimise your tax position and ensure compliance.
- Plan Ahead: Plan your finances to minimise the impact of the frozen personal allowance; this might include exploring tax-efficient investments, pensions, and other strategies to reduce your overall tax liability.
At Bevan Buckland LLP, we are here to assist you in managing your tax responsibilities, ensuring that you meet your obligations and make the most of available tax planning opportunities. If you have any questions or require expert guidance on Self-Assessment tax returns, do not hesitate to contact us by email or by calling 01792 410100.
