Personal Tax Planning
Our hope is that you filed your personal taxes on time and avoided the penalties for non-compliance. Even more to hope for is that your tax bill for 2017 – 2018 is not too high.
For those whose tax bill was high, it may be probably because they had themselves a very good year. However, we often find that tax bills are too high not because of raised personal income but because many people still turn to their accountants for tax advice.
it is possible for tax advisers and accountants to handle your personal taxes proficiently. The fact remains however that what accountants are best at is accounting, whilst the best people to give tax advice are tax advisers.
However, there are those of us who still prefer using their accountants to calculate their tax rather than using tax advisers, this article is here to help you minimize your tax liability.
Credits, allowances and reliefs
Some of us may ignore the credits and allowance but it is important to take advantage of this in order to minimize ones tax liability. So many individuals are unaware of exactly how and where allowances or reliefs can be made.
The how,what and when of your income
The mode of receiving ones income has an impact on ones tax liability. For instance one may opt to take dividends instead of the normal salary offered, however, there are very many other options available. Increasing your pension contributions will lower the current year’s income tax and NIC and by combining this with some specialist retirement tax planning could see you paying less now and in the future.
ensuring that you invest in a tax efficient manner.
If you have the available surplus funds, it can be beneficial to utilise tax efficient vehicles such as Enterprise Investment Schemes or Venture Capital Trusts, or even the humble ISA.
One should have a broader tax strategy in order to be able to avoid some of the obvious risks that are associated with various investment options.
4. Domicile taxation
Where you live, reside and are domiciled makes huge differences to your liabilities and options to utilise domicile tax planning should always be investigated. The remittance basis charge might be a less costly option for you or perhaps a dual contract agreement could mean your tax bill is reduced. Where one would want to retire to could also positively impact their wage bill.
5. Bespoke tax planning
For those that are earning more than 150,000 Euroos per year, this could be very efficient for them.
Offshore tax planning and wealth planning can offer fantastic opportunities for tax efficient wealth maximisation and this form of planning is far more accessible than you might think.
For the risk averse, simple forward planning can make great differences.