- Financial Planning
- Estate Planning
- Our People
- Our Clients
- About Us
- Contact Us
- Employer Services
Tax Planning Advice
Taxes are one of life’s certainties, but the tax system has many rules and regulations that allow individuals to reduce the amount of tax they pay. At True Bearing, we can help you to minimise your tax liability by looking at your circumstances and using our knowledge to see what allowances, schemes and rules are most appropriate for you to utilise.
There are many scenarios that may mean you need to seek professional advice about tax planning. For instance, you may be looking for Inheritance Tax (IHT) advice, or you’ve been made redundant and received a lump sum from your employer that you need advice on how to minimise the tax you pay. There are many legal ways we can help you to get the maximum benefit for your finances by providing advice on all the tax minimising strategies that are available to you. You may also wish to discuss the opportunities that are available for tax-efficient investing.
We have Independent Financial Advisers located throughout the North of England including Lancashire, Cheshire, Merseyside, Yorkshire and Cumbria. Your local, experienced Independent Financial Adviser will be able to help with all types of tax planning and tax-efficient investing.
Tax is a key factor in any financial plan, and while tax legislation can be complicated, tax planning doesn’t have to be. When working with you to put a tax plan in place for Income Tax, dividend and saving income, Capital Gains Tax and Inheritance Tax, we will take advantage of the following, where appropriate:
- Individual Savings Accounts (ISAs) allowances
- Pension tax relief (including annual and lifetime allowance planning)
- Business relief
- Gift exemptions
- Tax relief on VCT/EIS/SEIS investments
The Tax Planning Process
In simple terms, tax planning is a way of arranging your financial affairs as efficiently as possible, so you and your family pay the minimum amount of tax necessary. Our expert Financial Planners will work with you to build a solution around your needs. Here is how the process works.
Step One - Understand your current situation
During the initial meeting, we will work out all your sources of income, savings and investments as well as gather an understanding of your debts and expenditure. This will give us a clear picture of your finances and what shape they are currently in.
Step Two - Identify opportunities for efficiency
Once we have a clear understanding of your finances, our experts will consider what opportunities are available to you to reduce your tax burden.
Step Three - Implement your personal plan
With the opportunities to save money and reduce your tax liabilities identified, we will create a plan and put it into action to preserve more of your wealth for you and your family.
Step Four - Regularly review your plan
As tax legislation frequently changes, we will regularly review your tax plan to ensure it meets the most up-to-date legislation so you can continue to preserve your wealth.
How True Bearing Can Help You
At True Bearing, we pride ourselves on being different from many other Independent Financial Advisory firms that provide tax planning and tax-efficient investing advice. We understand that taxes can be confusing, complicated and time-consuming, and we are here to help. Your needs are at the centre of everything that we do and by understanding your personal needs and wants, we can recommend the most suitable strategies for you.
By employing the services of an Independent Financial Adviser, you can have peace of mind that all the tax planning advice recommendations made by True Bearing are accurate, safe and, most importantly, legal. We have the expertise to assist the following with tax planning advice:
- Sole traders
- Small businesses
Our team has been providing best practice tax planning advice since 2003. As a Chartered Firm, our advisers are amongst the most qualified in the UK and undergo regular training to ensure their knowledge is up to date so they can make the right recommendations to you.
Frequently asked questions about tax planning
What is Income Tax?
Income Tax is the tax you pay on income from sources such as employment or a pension. Most people will have a tax-free personal allowance for their income - this is currently £12,750. The basic-rate tax is then charged at 20% income between £12,571 and £50,720. A higher rate of 40% is charged on income between £50,271 and £150,000, and a rate of 45% is charged on income more than £150,000.
In Scotland, there are five different tax rate bands for Income Tax ranging from 19% to 46%.
What is Capital Gains Tax?
Capital Gains Tax is a tax charged on profit when you sell, give away as a gift or swap an asset that has increased in value. There is a tax-free allowance of £12,300 for Capital Gains Tax and any profits under this amount will not be taxed.
The rate of Capital Gains Tax is either 10% or 20%, depending on the rate of Income Tax you pay; however, these amounts can increase to 18% or 28% for Capital Gains made on residential property that doesn’t fall under private residence relief.
What is an ISA?
An ISA or Individual Savings Account is the most common and simplest account for tax-free saving and investing. Funds held in an ISA are free from Income Tax and Capital Gains Tax; however, there is a limit to how much you can pay into an ISA each year due to these generous benefits.
Currently, the annual ISA allowance is £20,000.
How can I cut my tax bill?
Our Independent Financial Advisers will help you to define your life goals to determine a tax plan to help you achieve them. We do this by organising your finances in an efficient (and legal) way to minimise your tax liabilities, which can eat into your wealth.
Using our expertise, we identify the options available to you, including exemptions, allowances, reliefs and tax shelters, that can be used to legally cut your tax bill.
Is paying less tax not illegal?
Any of the methods we use to reduce your tax liabilities will have been approved by the HMRC, so will be legal. However, due to the complexities of tax rules, you may not be aware of them or understand how to implement them, which is why we are here to help.
True Bearing can provide you with the reliable, quality and independent Tax and IHT planning advice. To find out more, get in touch with us today to arrange a one-to-one introductory meeting at our expense. This will give you an opportunity to sit down with a financial planner and discuss your circumstances and needs with us, so that we can recommend which Tax or Inheritance Tax Planning strategy is most suitable for you.