Taxation rules can be complex and are subject to regular change, so it is vital to take the right advice from an IFA (Independent Financial Advisor) with the right experience and qualifications to ensure, first of all, that you are not paying more tax than you need to, and that your finances are being handled in the most tax-efficient way.
Your Falco IFA will help you to understand the intricacies of taxation and how it relates to your finances, which may result in significant long-term savings.
The UK tax year runs from 6 April to 5 April, and during the year everyone who falls within the tax system is obliged to pay the relevant amount of income tax on their earnings. Income tax is obviously not the only tax as there are other types of taxation which may apply to you depending on your circumstances and the way your financial affairs are organised, including for instance National Insurance, Capital Gains Tax, Inheritance Tax and Corporation Tax.
Your Falco IFA will consider your precise circumstances before advising you on maximising your tax efficiency and minimising your tax liability. If you are married, this may simply begin with ensuring that there is an appropriate split of income between you and your spouse in order to take advantage of married persons’ tax allowances. We may also look at things like Gift Aid payments if you make significant charitable donations, reviewing tax relief on pension contributions or changing the way you receive returns from your investments, to cite just a few examples.
As with most financial matters, it is important to obtain advice from a qualified independent specialist when tackling tax planning. Your Falco IFA will focus on helping you to plan your taxes in advance, then design effective strategies to deploy the legal reliefs and allowances available to minimise your tax bills and benefit your overall financial wellbeing.