Tax planning advice from Frank
Tax changes quickly and it’s often difficult for accountants to write about tax planning without knowing people’s individual circumstances.
Here, our author Frank gives some general and advice for more meaningful and productive discussions with your accountant…
· Be cautious of tales from the pub! People can be notoriously inexact about their earnings, keen to boast and don’t usually understand the detail of their tax bill. Their circumstances may be very different to yours.
· Tax planning should happen during the year, not after, and certainly not just before the tax payment date.
· Good bookkeeping will give facts to help reasonable discussions about tax to take place. Waiting for draft accounts to be prepared may result in it being too late for tax planning.
· Well organised records will help keep track and claim all business expenses. You are much less likely ot have unexplained expenditure that cannot be claimed because you cannot remember what it was for! It’s not vital that every expense is supported with a receipt provided you can demonstrate it was a reasonable business expense but this should be an exception and you should have receipts for the majority of expenses.
… and finally… tax planning does not mean failing to put all your takings through the books because “that is what everyone does”. That’s isn’t tax planning, it’s fraud.
You can leave a comment for Frank below or you can contact the author via our contact section.