Minimizing Personal Tax Liability
Our hope is that you filed your personal taxes on time and avoided the penalties for non-compliance. Even more to hope for is that your tax bill for 2017 – 2018 is not too high.
If your tax bill does seem a little high this time around, we hope it is high simply because you have had a good year. Most of the times however, a high personal income tax is not because of increased income but because of turning to tax advisers to handle this issue for you.
it is possible for tax advisers and accountants to handle your personal taxes proficiently. The fact remains however that what accountants are best at is accounting, whilst the best people to give tax advice are tax advisers.
However, there are those of us who still prefer using their accountants to calculate their tax rather than using tax advisers, this article is here to help you minimize your tax liability.
Reliefs, credits and Allowances.
Some of us may ignore the credits and allowance but it is important to take advantage of this in order to minimize ones tax liability. So many individuals are unaware of exactly how and where allowances or reliefs can be made.
Regarding your income
How you receive can impact upon your tax liability. For instance one may opt to take dividends instead of the normal salary offered, however, there are very many other options available. Increasing your pension contributions will lower the current year’s income tax and NIC and by combining this with some specialist retirement tax planning could see you paying less now and in the future.
TaxEfficient Manner of investment.
Other vehicles to further reduce the tax liability is by investing in venture capital as well other enterprise investment schemes.
One should have a broader tax strategy in order to be able to avoid some of the obvious risks that are associated with various investment options.
Alternative taxation types
Where you live, reside and are domiciled makes huge differences to your liabilities and options to utilise domicile tax planning should always be investigated. The remittance basis charge might be a less costly option for you or perhaps a dual contract agreement could mean your tax bill is reduced. 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.
The other most efficient mode of planning ones tax is through offshore wealth planning and investments.
For the risk averse, simple forward planning can make great differences.