Short Course on Agents – Covering The Basics
Minimizing Personal Tax Liability
Personal tax deadlines are way overdue, the only hope is that you have avoided the penalties. 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.
That is not to say that accountants can’t proficiently give tax advice, they can. The fact remains however that what accountants are best at is accounting, whilst the best people to give tax advice are tax advisers.
If you are one of the many people out there that still uses an accountant to calculate your tax rather than a tax adviser, here are five tips to help minimize next year’s personal tax liability.
Credits, allowances and reliefs
For some of us, this may seem pretty obvious but it is good to make sure that one utilizes any credits or allowances that may be available to you as an individual or to an individual. So many individuals are unaware of exactly how and where allowances or reliefs can be made.
Regarding your income
Ones tax liability is also affected by how one receives your income. The typical method of reducing a tax liability is take dividends over normal salary where possible, but there are a great many other options available to us. Further to being paid in form of dividends, one may increase their pension contributions so as to keep reducing their tax liability even further.
3. Investing in a tax efficient manner
Other vehicles to further reduce the tax liability is by investing in venture capital as well other enterprise investment schemes.
However, it is important to remember that any kind of investment has its risk and it is important to have a broader strategy.
Other kinds of taxation
various tax differentials apply regarding to where one resides, one should therefore carry an investigation to see how this turns out. There are two main things to consider, a contract basis of remittance or a remittance basis which have an effect on how you pay the tax bills. Even considerations of where you want to retire could positively impact upon your tax bill.
This is an efficient mode of planning for those that are earning more than 150,000 Euros in a year.
However the most efficient mode of reducing ones tax income is through offshore wealth and tax planning.
All of us tend to be risk averse and a simple way to do this is to do a forward planning.