The trick to saving tax is planning….
Author: Russell SmithJune 15, 2012
There’s a statistic which is routinely said by people who are able to write wills for people. The statistic is that only 1 in 3 people have a will which obviously means that 2 in 3 people don’t.
If I was a will writer, I too would regularly say this statistic since a) it tells people that they should have a will and b) it tells people that they will be smarter than the rest of the population. Because when you think about it, it is amazing that anybody doesn’t have a will.
Everybody knows they will die and everybody wants their families to be cared for. So why do most people not take the time to plan for this eventuality? I have no idea, but I do know that by not making the time to plan the will it can in some cases cause real problems for the families and have assets and property go to places where they were not intended.
I don’t do wills! I do tax saving, but they are very similar. You can get caught out on tax easily because it is simply very complicated! But one of the most common ways to get stuck in a tax trap i.e. pay tax that you really could have avoided, is to not plan your tax.
Just by simply sitting down with an accountant to project your earnings over the next 3 years can save a huge amount of tax because you can plan how you are going to avoid the tax pitfalls.
In the same way as wills, maybe it doesn’t sound as exciting a subject as it should (or as it exciting as I find it!) but what is exciting is saving thousands of pounds in tax because you have properly planned. This of course means you can use the tax saving on something exciting.