Higher rate tax and National Insurance can absorb well over half of what you earn. That's like spending more than half the year working for the state. It doesn't have to be like this.
Tax is a cost, and should be managed like any other cost. Unfortunately it isn't possible to ‘change supplier’ (even though HMRC refers to us all as ‘customers’), but there is a whole range of options available to those businesses and individuals who would prefer to pay no more than they are required by law.
How do you help me save tax?
Every one of our clients is contacted in the months before their business year-end. We will suggest ways in which the tax exposure on the current year's profits can be managed most effectively, perhaps by changing the timing of purchases or other transactions, ensuring that annual reliefs are fully utilised or advising on tax-efficient ways of financing acquisitions. Planning just before your year-end is the best way of achieving a lower tax bill as it takes account of your actual trading performance in the year. In most cases it is too late to attempt to plan after the year-end, which unfortunately is all too common elsewhere.
The entire professional team at DK meets every Tuesday morning for regular tax update training. It is well known that the UK has the most complicated tax legislation in the world, and staying on top of the frequent changes is essential if we are always to give the best advice. That's an obligation that we take very seriously.
And when there are major changes, you will be informed of the implications for you extremely quickly (our Budget Report, as an example, is usually delivered within hours of the Chancellor finishing his speech).
From time to time there may be opportunities to enjoy very significant tax savings through the use of particular forms of planning, such as Research and Development tax credits; if you may be able to take advantage then we will discuss the advantages and disadvantages one to one.
At all times we recognise that all clients are individuals, and so all of our advice will be tailored to your unique circumstances.