Tax services and planning
Making tax Planning clear and simple
By planning your tax obligations, you’ll not only potentially save money on your tax bill, but you’ll also avoid any unwanted fines from HMRC.
As tax advisory experts, we can help you with your tax bill, giving time, support and automation through cloud technology to improve your routines.
Our tax planning services can prepare your company tax returns, and help you claim reliefs and allowances, thus hopefully lowering your tax bills.
We’ll make sure to make the most of any available allowances and help you plan no matter the kind of tax – whether that’s capital gains tax (CGT), corporation tax or inheritance tax.
Pre year end support
Hitting your tax deadlines is vitally important as a business — having someone in your corner who will make sure you hit these deadlines is equally important.
With our support, you’ll hit those end of year tax dates with no issues, avoiding any last minute panic.
Tax Advisory experts, ready to help
Whatever the question, we’re here to help you. Whether that’s claiming R&D tax relief for your company’s innovation or looking systematically at your expenses.
We’ll use insight wherever we can, giving you the latest information to help you stay compliant and in control of your tax obligations.
Interested in learning more? Find an accounting package that works for you.
What are you waiting for?
We’re so excited to work with you and your business – let’s talk whenever you’re ready.
Business services
Personal tax help
Online accounting
“They have helped me completely transform the way I run the finances”
“If you need accountancy services, look no further. I could not recommend Lumin any more highly. They have helped me completely transform the way I run the finances in my business and have helped me build my confidence in knowing the numbers.”
-Harri Halvon-Hardy
FAQs
What is tax planning in the UK?
Tax planning in the UK is the process of organising your finances to minimise tax liabilities while remaining fully compliant with the law. It involves making strategic decisions throughout the year to take advantage of available tax reliefs, allowances, and exemptions.
Key aspects of tax planning include:
- Utilising Allowances: Taking full advantage of tax-free allowances like the personal allowance, annual investment allowance, and tax-free dividends.
- Tax-efficient Investments: Structuring investments in tax-efficient vehicles such as ISAs or pensions to reduce taxable income.
- Timing of Income and Expenditure: Managing the timing of income and expenses to reduce tax liabilities, especially at the end of the financial year.
- Business Structure: Choosing the right business structure (e.g., sole trader, limited company) to optimise tax efficiency.
- Capital Gains Planning: Strategically planning the sale of assets to make use of exemptions or reliefs, such as the annual exempt amount for capital gains.
How can I optimise my taxes?
Optimising your taxes involves strategic planning to reduce your tax liabilities while ensuring compliance with UK tax laws.
Here are key ways to optimise your taxes:
- Maximise Tax-Free Allowances: Take full advantage of personal allowances, annual investment allowances, and the tax-free dividend allowance.
- Tax-Efficient Investments: Use tax-advantaged accounts like ISAs or pensions to reduce taxable income and grow investments tax-free.
- Claim All Eligible Deductions: Ensure you claim all allowable business expenses and deductions, such as R&D tax credits, capital allowances, and business mileage.
- Consider Your Business Structure: If you’re self-employed, consider whether a limited company structure might be more tax-efficient, particularly for higher earnings.
- Defer Income: Depending on your situation, deferring income to the following year or accelerating expenses can help reduce taxable income in the current year.
- Capital Gains Tax Planning: Plan the timing of asset sales to take advantage of exemptions or reliefs, such as the annual exempt amount.
What is the difference between tax planning and tax avoidance ?
Tax Planning is the legitimate process of organising your finances to minimise your tax liabilities within the boundaries of the law. It involves making informed decisions to take advantage of available tax reliefs, allowances, and exemptions. Examples include using tax-efficient investment vehicles (like ISAs and pensions) or ensuring you claim all allowable business expenses.
Tax Avoidance, on the other hand, involves using legal but often aggressive strategies to reduce tax liabilities, often exploiting loopholes in the law. While not illegal, tax avoidance can be seen as unethical, and HMRC may challenge such practices, potentially leading to penalties or adjustments.
Is tax planning legal ?
Yes, tax planning is completely legal. It involves organising your finances in a way that minimises your tax liability within the boundaries of the law. Tax planning focuses on taking advantage of legitimate allowances, exemptions, and reliefs available under UK tax laws.
It is different from tax avoidance or evasion, which can involve aggressive strategies or illegal practices. Tax planning is about making informed decisions to reduce taxes ethically and efficiently.
Is a tax advisor different from an accountant?
Yes, a tax advisor and an accountant have different roles, although their responsibilities can overlap.
Tax Advisor: Specialises in tax laws and strategies, helping individuals and businesses minimise their tax liabilities. They provide expert advice on tax planning, filing, and compliance, and may assist with specific tax issues such as inheritance tax or VAT. Tax advisors are often sought for strategic advice on reducing tax burdens within the legal framework.
Accountant: Focuses on the broader financial management of a business or individual, including bookkeeping, preparing financial statements, and ensuring compliance with accounting standards. Accountants may also offer tax advice, but their role is more comprehensive, covering financial reporting, auditing, and overall financial planning.
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