Tax Planning Support
Plan ahead, understand your likely tax position
and consider your options before
your accounting period ends.
Tax planning is mainly used by limited companies, but it can also help individuals with more complex income. We review the figures, estimate what tax may be due and explain any decisions that could still make a difference.
TAX PLANNING SUPPORT
Plan while there is still time to act
Tax planning helps you understand where you are heading before the figures are fixed. It can reduce uncertainty around forthcoming tax bills, help you make sure enough money is set aside, and identify decisions that could reduce the final amount due.
Once an accounting period has ended, the tax calculation is based on decisions that have already been made.
A tax planning review takes place beforehand. We review your current figures, estimate what your tax bill is likely to be if nothing changes, and explain the options that may still be available.
This gives you time to consider what makes sense for your business before the year ends.
See your likely tax position
Understand what your company and personal tax bills are currently expected to be.
Explore the available options
Understand what your company and personal tax bills are currently expected to be.
Make decisions before year end
Take action while changes can still affect the final tax position.
Could a tax planning
review help?
Tax planning is mainly useful for limited company owners, but it can also help individuals in certain circumstances.
A review may be useful if:
Your profits or income have changed
Understand how an increase in profits or income may affect the tax you will pay.
You are unsure what your tax bill may be
Get an estimate in advance and know how much money you may need to set aside.
Your company has surplus cash
Explore the options available without unexpectedly creating a large personal tax bill.
You are considering a major purchase
Understand how equipment or other business investment could affect your tax position.
You take money through salary and dividends
Review what you have already withdrawn and how this may translate into personal tax.
You are approaching a personal tax threshold
Useful for landlords and people with several sources of income who may be moving into a different tax band.
What happens during a tax planning review?
A tax planning review is ideally arranged around one to two months before your accounting period ends. This gives you enough time to understand the figures, consider the options and act if you decide to.
Using your up-to-date bookkeeping records, usually held in Xero, we review the figures with you and calculate your estimated tax position. This can usually be done during a Zoom meeting, so you can see how different decisions may affect the outcome.
Common areas we help you understand;
- Review your current profit and expected income before year end
- Estimate your likely corporation tax bill
- Look at dividends or other money already taken from the company
- Consider the effect on your personal tax position
- Discuss planned equipment purchases or business investment
- Explain which options are still available and any relevant deadlines
- Work alongside a financial adviser where regulated pension or investment advice is needed
TAX PLANNING IN PRACTICE
Ways tax planning can make a difference
Tax planning can be useful in several different situations.
A business considering new equipment can see how the timing of the purchase may affect its corporation tax and available cash. A company owner deciding how much to take through dividends can understand the effect on their personal tax. Someone with several sources of income can see whether they are approaching a different tax band or threshold.
These decisions still need to make sense for the business or individual. The benefit of planning is being able to see the likely figures and consider the wider effect before deciding what to do.
See the figures first
Understand your estimated tax position before making a significant decision.
Consider the wider business
Look at tax alongside cash flow, business plans and whether the investment makes sense.
Ask if you are unsure
Existing clients can contact us and we will check whether a tax planning review is likely to be worthwhile.
What Happens Next?
Getting started with a Tax Planning Review
If you are already an Accountably client and are unsure whether a review would be useful, start by getting in touch. We can look at the information we already hold and help you decide.
Tell us what has changed
Let us know about any changes in your profits, income or plans, and why you are considering a review.
We’ll check whether a review may help
We’ll look at your previous figures and expected income to see whether a tax planning review is likely to be worthwhile.
Arrange the review in good time
If a review is appropriate, we’ll explain what information is needed and arrange it before your accounting period ends.
