Iain Wallis

Proven Tax Strategies for High Net Worth Individuals

0191 603 0270

Taxability 2013/14: Over 65 proven legal ways to save tax

By

Do you really want to give the taxman £521,700?

 

It’s a lot of money, isn’t it? But, even before the current economic crisis, that’s how much someone earning £30,000 a year would have paid in taxes over their lifetime. While if you are lucky enough to earn more than £30,000, your lifetime tax bills will probably have been even higher.

However, because of the economic crisis, as the country starts to pay the billions to balance the Government books, your tax bills will almost certainly soar even higher still.

As a result, there is a tax bombshell about to explode.

 Of course we all have to pay our fair share of taxes. But there’s no reason why you should pay more than your fair share of that tax burden, is there?

Unfortunately, paying more than their fair share is precisely what many people do… often without even realising it.

So, because we don’t want you to be one of them, here’s our up to date easy-to-use tax-busting checklist.

In just a few pages it reveals 70 powerful ideas to shave many pounds – perhaps even many thousands of pounds – off your tax bills.

Just think, even if you can only shave 5% off your tax bills, if you earn £30,000 a year that tiny 5% saving adds up to an extra £26,085 in cash to spend and enjoy during your lifetime.

And if your earnings are much more than £30,000 per annum then your savings could well be disproportionately higher – quite possibly as much as a 50% reduction in the tax you have to pay.

 What could you do with that sort of money?

The TaxAbility checklist has been specifically designed to help you start to identify where and how to make these sorts of savings.

And it has been designed to take less than 25 minutes to complete. It could be the most profitable 25 minutes you’ll spend this year.

Once you’ve filled it in we strongly recommend that you discuss all of your “no” answers with your Chartered Accountant.

Of course, if you don’t have a Chartered Accountant, or you would simply like someone to give you a fresh perspective on your options, we would be delighted to help you.

Iain Wallis signature

 

 

Iain Wallis – Proven Tax Strategies For High Net Worth Individuals

So what about the 2013 Budget?

By

 Headline grabbing announcements in the Budget do little to hide the three brutal truths and the billion bombshell that will mean excruciating pain for many in the UK

 
The anorak wearers amongst you in reading about the budget have spotted in Table B.5 on page 104 of the Treasury’s full “Budget 2013” document (which you can download here http://www.hm-treasury.gov.uk/budget2013_documents.htm) National Debt is going to rise in the next 5 years from £1,189bn to £1,637bn

That’s a staggering increase of £448bn. Given that there are 63.2 million people in the UK, that equates to £7,088 per person. try obtaining that on an interest free credit card!

So today I’ve  launched a free “2013 Tax Minimisation Review” initiative to help local taxpayers and businesses get to grips with the pain behind the Budget.

There are some very welcome headline grabbing announcements in this Budget. But we shouldn’t get carried away, since the underlying message is one of three brutal truths.

The first brutal truth is that public finances are still in a terrible mess.

In fact, the bombshell is that the people and businesses in the UK  will be forced find an extra £448 Billion just to pay back our share of the extra money the government is now going to borrow over the next 5 years. So for some local people the pain is going to be excruciating as the country balances the books with even higher tax bills, even lower wage increases and even fewer public services and benefits.

And even if they work hard and manage to avoid all of that, high earners could find the government taking up to 60p from every extra pound they earn: 60% – is the effective tax rate on income just above £100,000 due to the withdrawal of the personal allowance.

Middle earners could have as much as 65p taken from them  http://www.independent.co.uk/news/uk/politics/middle-classes-face-65-tax-rate-after-child-benefit-squeeze-8439162.html

While low earners can lose a staggering 73p once the claw-back of benefits is also taken into account http://www.thisismoney.co.uk/money/news/article-2242158/The-families-hammered-73-tax–income-tax-National-Insurance-combine-loss-benefits.html

The second brutal truth is that it is businesses and not Budgets that offer us the best hope of putting things right by replacing the jobs and wealth lost, and generating the extra taxes needed to pay for everything.  So the region’s job and wealth creating businesses need to stand up and be counted by taking urgent action to make it happen.

The third brutal truth is that the 2013 tax regime is hideously complicated and contains a huge number of pitfalls for the unwary.

The good news, though, is that it now also allows the really well advised to make some very big tax savings. And that’s why we’ve launched our free 2013 Tax Minimisation Review service for businesses and individuals – to make sure that no-one suffers by paying a single penny more than their fair share of tax.” 

 Readers who do not want to pay a single penny more tax than they need to can claim a free 2013 Tax Minimisation Review by calling Iain] on 0191 206 4080.

Further information on this topic can be obtained from Iain@iainwallis.com

Some timely tax planning tips with 5 April coming fast

By

 

Here’s a few tax tips to ponder and take action upon before the end of the tax year:

Income Tax

Those property investors who do not trade through a limited company have no choice as to when to make up your accounts.

Letting income will always be that arising in each tax year to the 5th April.

In looking to save tax in any business approaching a year end, you would look to defer income and maybe bring forward expenditure.

Now with rental income it’s pretty hard to defer income as I would expect you receive your rental each month so not much planning opportunity there then so what about expendtiture. Well now we’re talking.

If you’ve some major repairs on the horizon, maybe a complete repaint and remember we are talking repairs here not capital expenditure, get in place a contract for the work to be undertaken. If you’ve contracted to have the work done then these costs can be brought into your letting accounts which a) may reduce the level of profit and save tax or b) turn a profit into a loss and again save tax.

Remember that loses can only be offset against other property income or carried forward in perpetuity to offset against profits. 

As an aside tax losses are personal and so a) can not be transferred to anyone and b) go with you to the grave.

Capital Gains Tax

You may have in your portfolio a property that is sitting on a nice capital gain. Now may be a chance to offload that at a slightly below market price for a quick sale and a tax free gain. Each individual can currently make capital gains tax free of £10,600. So a property held jointly could show a gain in excess of £21,200 and if sold before 5th April 2012 not create a tax liability.  I say in excess because you pay capital taxes on the net sale proceeds less the cost of acquisition.

Inheritance Tax

As with income tax and capital gains tax there is an exemption for inheritance tax. The annual exemption is currently £3,000 and thus the first £3,000 of any transfer of value will be exempt from Inheritance Tax. If the exemption is not used then this can be carried forward. So assuming no gifts were made last year, Mum and Dad could gift £6,000 to their children completely tax free. As an impoverished trainee accountant it was a relief I often brought to my parents attention, though this simple tax planning strategy always fell on deaf ears!

Further information on this topic can be obtained from Iain@iainwallis.com

5 April 2012 Approaching fast: only 23 days left for tax free money!

By

 

This is a reminder from a blog posted after the stampede to meet the 31 January deadline.

There’s every good reason to take action and not leave money in the HMRC coffers. Nothing untoward or complicated Barclays strategies, just honest sound tips to save tax and generate free money.

Here’s a few tax tips to ponder and take action upon before the end of the tax year:

Income Tax

Those property investors who do not trade through a limited company have no choice as to when to make up your accounts. Letting income will always be that arising in each tax year to the 5th April.

In looking to save tax in any business approaching a year end, you would look to defer income and maybe bring forward expenditure.

Now with rental income it’s pretty hard to defer income as I would expect you receive your rental each month so not much planning opportunity there then so what about expendtiture. Well now we’re talking.

If you’ve some major repairs on the horizon, maybe a complete repaint and remember we are talking repairs here not capital expenditure, get in place a contract for the work to be undertaken. If you’ve contracted to have the work done then these costs can be brought into your letting accounts which a) may reduce the level of profit and save tax or b) turn a profit into a loss and again save tax.

Remember that loses can only be offset against other property income or carried forward in perpetuity to offset against profits.  As an aside tax losses are personal and so a) can not be transferred to anyone and b) go with you to the grave.

Capital Gains Tax

You may have in your portfolio a property that is sitting on a nice capital gain. Now may be a chance to offload that at a slightly below market price for a quick sale and a tax free gain. Each individual can currently make capital gains tax free of £10,600. So a property held jointly could show a gain in excess of £21,200 and if sold before 5th April 2012 not create a tax liability.  I say in excess because you pay capital taxes on the net sale proceeds less the cost of acquisition.

Inheritance Tax

As with income tax and capital gains tax there is an exemption for inheritance tax. The annual exemption is currently £3,000 and thus the first £3,000 of any transfer of value will be exempt from Inheritance Tax. If the exemption is not used then this can be carried forward. So assuming no gifts were made last year, Mum and Dad could gift £6,000 to their children completely tax free. As an impoverished trainee accountant it was a relief I often brought to my parents attention, though this simple tax planning strategy always fell on deaf ears!

We are talking tax free money here so please take action.

Upcoming Tax Strategy

By

There may be a tax strategy coming into play to mitigate tax on income and chargeable gains in the 2011-12 tax year.

The key features are:

  • Shelter income or chargeable gains in the 2011-12 tax year.
  • The entry limit is £100,000. 
  • Fees will vary according  to what income is sheltered but indicative rates would be about 11%   
  • There is no active participation and no ongoing involvement required.
  • There will be a very short window of opportunity for sophisticated high net worth individuals that are interested

If you wish to proceed you will have to act fast !

The closing date for registering interest NOT necessarily proceeding is midnight on 25 February 2012.
 

26 February – Full details of the planning will be made available only to registered individuals. 

 1 March – All application forms and fees to be submitted by 4PM.

If you have any further questions please contact me

Or if you wish to proceed.

Iain@Iainwallis.com

 

Use your ISA

By

Whilst I know that some of you property investors want to keep your cash to fund cheeky offers, as the end of the tax year draws ever closer just a reminder to make sure you have used your full  ISA allowances. As a reminder here are the benefits at a glance:

  • Shelter an investment of up to £10,680 from tax
  • ISA limits increase annually in line with inflation (RPI)
  • You pay no capital gains tax on the returns from your ISA
  • No further income tax to pay
  • You don’t have to mention ISAs on your tax return
  • You don’t need to hold an ISA for a fixed term (although a Stocks and Shares ISA should be regarded as a long-term investment)

Anyone over the age of 18 who is a UK resident can invest in a Stocks and Shares ISA.

As ‘individual’ accounts,  money that is to be invested in an ISA must belong to the person making the application, but a married couple can each have their own ISA and shelter up to £21,360 between them.

5th April approaching fast: how to avoid property tax legally

By

As another tax filing deadline, albeit extended due to strike action, passes it’s time to look forward to the end of the tax year.

Whilst those at HMRC will look forward to a new set of coloured pens, elastic bands, treasury tags and acess to the stationary cupboard for the accountants of this world this is the time to help their clients save tax by making use of allowances available or maybe advising them on action to take to reduce income or even create losses.

Here’s a few tax tips to ponder and take action upon before the end of the tax year:

Income Tax

Those property investors who do not trade through a limited company have no choice as to when to make up your accounts. Letting income will always be that arising in each tax year to the 5th April.

In looking to save tax in any business approaching a year end, you would look to defer income and maybe bring forward expenditure.

Now with rental income it’s pretty hard to defer income as I would expect you receive your rental each month so not much planning opportunity there then so what about expendtiture. Well now we’re talking.

If you’ve some major repairs on the horizon, maybe a complete repaint and remember we are talking repairs here not capital expenditure, get in place a contract for the work to be undertaken. If you’ve contracted to have the work done then these costs can be brought into your letting accounts which a) may reduce the level of profit and save tax or b) turn a profit into a loss and again save tax.

Remember that loses can only be offset against other property income or carried forward in perpetuity to offset against profits.  As an aside tax losses are personal and so a) can not be transferred to anyone and b) go with you to the grave.

Capital Gains Tax

You may have in your portfolio a property that is sitting on a nice capital gain. Now may be a chance to offload that at a slightly below market price for a quick sale and a tax free gain. Each individual can currently make capital gains tax free of £10,600. So a property held jointly could show a gain in excess of £21,200 and if sold before 5th April 2012 not create a tax liability.  I say in excess because you pay capital taxes on the net sale proceeds less the cost of acquisition.

Inheritance Tax

As with income tax and capital gains tax there is an exemption for inheritance tax. The annual exemption is currently £3,000 and thus the first £3,000 of any transfer of value will be exempt from Inheritance Tax. If the exemption is not used then this can be carried forward. So assuming no gifts were made last year, Mum and Dad could gift £6,000 to their children completely tax free. As an impoverished trainee accountant it was a relief I often brought to my parents attention, though this simple tax planning strategy always fell on deaf ears!

Further information on this topic can be obtained from Iain@iainwallis.com

MENU