- Smooth Feathers Accountants
- 268 Bath Road, Slough. SL1 4DX
Tax planning is an inevitable facet of life for both medium and high earning individuals.
The fiscal affairs you face is bound to be shaped by your life events and goals. So, it is mandatory to have a tax adviser by your side who can make the right tax arrangements for you and your family.
The Smooth Feathers Accountants personal tax team aids business and property holders, valuable partners and executives, mobile individuals and their families.
We’ll help you to realign your finances properly, and keep your tax affairs in line.
There are multitude of options to lower your exposure to an array of taxes. All of it can be accomplished with the right foresight and expert professional advice.
Effective planning begins with a strong desire to cut on potential liability by taking relative steps. This can be done by making sure, proper tax allowances are utilised within the asked timelines.
Our advice is custom tailored to individual situations – why not book a free consultation to explore how we might help you plan your taxes?
Let us know your situation in depth. We’ll take a 360° outlook that includes not just your finances, business and property but also your personal circumstances, ambitions, and life goals.
This helps us see the picture inside the outer layer. We’ll examine your tax status in a holistic way and then design a perfect solution that meets your needs & lower your tax liability.
Enlighten yourself with the applicable tax types – take help from this page. Gather your details & pass on to us to help you with tax planning.
Fill out the form below to take up free consultation. We’re here to help you learn the pros of working with us suitable for your own situation.
If you want peace of mind and like the service then come on board with us on your personal tax planning.
Personal tax is a vast subject. The taxpayers in the UK has presently over 1,000 tax reliefs available to them, and these rules are constantly being updated. Here we are with our expertise in tax planning and experience in core personal service. We act as trusted advisors to our clients for their entire lives and careers.
Our personal tax planning services include:
Your Personal Allowance is the volume of income you need not have to pay tax on. The standard personal Allowance for 2019-20 is £12,500. The tax rates from 20% to 45% is then charged for non-savings income above the Personal Allowance amount.
A higher margin of tax is payable for money between £100,000 and £124,000 when the Personal Allowance is withdrawn. This gives a marginal rate of 60% for non-savings and savings income.
You can transfer £1,250 of your Personal Grant to your spouse or civil partner if neither of you is a higher rate taxpayer. Your Personal Grant can be even more if you claim Blind person’s Grant.
It allows the basic rate tax payer to receive up to £1,000 of interest from savings tax-free. While, a higher rate taxpayer cab avail up to £500 interest from savings without any tax due. Please see there is no relief for an extra rate (45%) taxpayer.
Things to consider…
It is the tax on the profit that you sell with an appreciated value. It applies on the gain you make and not on the amount you receive. Usually, you do not pay gifts to your husband, wife, or civil partner or charity for that matter.
Each person can avail a tax-free gain up to £12,000 or up to £6,000 for trusts. Marries couples and civil partners can therefore get a tax exemption of up to £12,000. Gains are only taxed at a rate that is income-dependent.
The tax rate for gains falls under the spare basic rate band grant of 10% where taxable income is less than £33,501 or £31,501 in Scotland. It then rises to 20% and the standard rate for a trust get up to 20%.
The capital gains tax goes higher in case of residential property and carried interest which are taxed at a rate of 18% and 28%. Trustees pay a 28% tax for the similar disposal of such assets.
Business owners get a lower rate of 10% for qualifying gains under the entrepreneur’s relief. While the maximum reduction tax is £1 million.
Things to consider…
Generally, inheritance tax (IHT) is due on death at a rate of 40% if the inheritance threshold of £325,000 is exceeded.
Since 6 April 2017 there has been a £100,000 residence nil-rate band available, subject to certain conditions. These include leaving the home, or share of one to direct descendants such as children or grandchildren. This residence band will rise annually until April 2020 when it reaches £175,000. This means the individual available nil-rate band reaches a maximum of £500,000 or £1 million for married couples or civil partners.
The percentage of any unused nil-rate band from the first death may be transferred to the surviving spouse, allowing up to double the nil-rate band applicable at the date of the second death.
Gifts or transfers made within seven years of death are also added back into the estate and are liable to IHT, but may be subject to some exemptions as well as a tapered reduction for tax on transfers between years three and seven.
Things to consider…
There are limits on how much you can invest in a pension scheme before a tax charge is payable. You need to contribute your pension being a UK individual to attempt for a tax relief.
Tax relief for pension grants is as per the net earnings and the annual allowance.
The annual grant is presently £40,000 a year for income slab of less than £150,000. While it allows an annual grant of minimum £10,000 per year for income slab of £210,000 or more.
Extra set of rule applies to individuals with ‘threshold income’ above £110,000. So, taking a pension advice is important. You can carry forward any used grants provided you had a pension fund during the last 3 years.
A separate lifetime allowance has a limit of £1 million. However, when seeking for benefits more than this value is liable to a tax charge.
Points to consider…
Individuals who are 18 or over can invest up to £20,000 in an ISA. Growth, income and withdrawals from an ISA are free of income and capital gains tax, but the value of an ISA will form part of your estate for inheritance tax purposes.
A Junior ISA of up to £4,368 is available for those who are 17 or under.
ISAs are normally readily accessible (subject to scheme rules).
It is also possible, as part of the £20,000 ISA allowance, to invest £4,000 each year into a Lifetime ISA which receives an annual government bonus of up to 25% of your savings. The funds can be used on the purchase of a first home, or used for retirement. There are further scheme rules and early withdrawal penalties. You must be over 18 but under 40 to open a Lifetime ISA.
Help to Buy ISAs allow individuals over the age of 16 to save up to £200 a month towards their first home. Buyers can also deposit a lump sum of up to £1,000 when they set up their account. The money will earn interest and will also qualify for a 25% bonus (up to £3,000) from the government, provided the funds are used to buy a home.
Things to consider…
Individuals on low incomes may be eligible to claim tax credits or the universal credit (existing claimants will move to universal credit by the end of March 2022).
The calculations for these benefits involve determining 3 figures: your maximum benefit, your net income and your allowance.
The maximum benefit is the amount you would receive if you had no income at all. As some income is disregarded, it is possible that someone could receive the maximum benefit even if they had a small income.
Net income is usually earnings after tax, national insurance and pension contributions. A notional income may be added if you have capital above a certain threshold.
The allowances are the maximum amount of income you may earn and still receive the maximum benefit. If your income is above this figure, a percentage of the excess is deducted from the maximum benefit.
Things to consider…
From 6 April 2017 non-domiciled individuals are deemed UK domiciled for tax purposes if they have been a UK resident for 15 of the past 20 years, or if they were born in the UK with a UK domicile of origin.
Inheritance tax is charged on UK residential property when this is held indirectly by a non-domiciled individual through an offshore structure. This, for example, might be where the property is held in a trust or a company.
Smooth Feathers Accountants is a premier firm of Accountants and Tax Consultants in the United Kingdom. Our team provides a broad range of expert solutions for small and medium scale companies, individuals, start-ups and non-profit organizations.