Ipswich Financial Adviser

Archive for the ‘Tax Tips’ Category

A simple form of tax planning is to ensure you have made a will.

Do make sure you get a professional to write the will for you as by “doing it yourself” you may actual cause more tax and issues within your estate once you pass away.

The will ensures your assets are passed to your beneficiaries and that you do not die intestate (without a will). If this happens then there are prescribed rules as to how your estate is divided up and this could cause unnecessary inheritance tax to be paid and the money to go to people you had no intention of receiving any money.

If you need a referral to a good will writer then please feel free to contact Thompson Financial Consulting and we will be happy to get you the advice that you need.

An easy way to preserve your money is to ensure you get your self assessment tax return done on time.

If you miss the deadline of the end of January 2010 to submit your return to the HRMC then you will incur a penalty.

Don’t let the HRMC have more of your money, so bite the bullet and get your tax return done before the cut off date.

The second thing to do is to check that your tax code is correct. Don’t assume that this has been correctly applied by an employer. If it is wrong you could be missing out on  tax free income. Check with your employer or HRMC to ensure you get what you are entitled to.

If you have any tax issues then please contact Thompson Financial Consulting and we can put you in touch with accountants that come highly recommended.

If you are fortunate enough to have savings or investments and these are not in a tax efficient vehicle like an ISA, it is likely you will have to pay tax on the interest you receive at your prevailing income tax level. This could be nil, 20% or 40% of the interest you receive.

But what if your spouse has a lower income tax level than you? The sensible thing to do would be to put some or all the money into your spouses name so that any interest received would be taxed at your spouse’s lower income tax rate. Simple but very effective!

Always check with your tax adviser and financial adviser before making any changes to your savings or investments to ensure you don’t trigger any other taxes, but on most occasions you can prevent paying unnecessary tax to the HRMC.

If you would like any help or advice on this matter please contact Thompson Financial Consulting Ltd

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.