Five tips to cut your lifetime tax bill

Kashflow logo
5

 

If you consider the amount of tax you or your clients have paid over their lives in various forms to date, you may look back and find areas where you could have saved money. 

Chris Mattos, tax partner at Randall and Payne, set out five small changes to make to reduce clients' lifetime tax bills in his presentation at the UK200Group conference in Newcastle last month. 

Using an example of "Bob", a fictional client with a tax bill of £1m over a lifetime, Mattos broke down the client's bill into categories such as income tax, NI, council tax, SDLT and VAT. 

However, he argued, by employing these five changes, Bob could have cut £250,000 off his bill. 

Register with AccountingWEB for free to read the rest of the article, which includes:

  • Using a limited company
  • IR35: Latest guidance from HMRC
  • Use of spouse allowances
  • Mitigation of BPR 
  • Lifestyle changes 

Please Login or Register to read the full article

The full article is available to registered AccountingWEB.co.uk members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

Rachael Power
Community Correspondent
Sift Media
Share this content

Replies

Please login or register to join the discussion.

avatar
05th Dec 2012 10:04

"Mattos argued that by Bob

"Mattos argued that by Bob making changes to his lifestyle, such as giving up smoking and alcohol even at the age of 42, he could have saved £26,085 on his tax bill in terms of various taxes."

But Freewheeling Franklin Freakoutski says

"Dope will get you through times of no money better than money will get you through times of no dope".

With kind regards

Clint Westwood

 

Thanks (3)
avatar
05th Dec 2012 13:08

Imagine Bob's shock

when he found out the annuity rate he would have attained by keeping smoking/drinking (and probably eating to increase his wasteline) would have doubled the annuity he could have attained.

 

Although I am amused by the fairly unique circumstances leading to the appropriate tax planning.....5 tips you couldn't  accuse a normal taxpayer of being able to take advantage off (well i suppose the last one....but then as i said even that comes with a downside). 

Thanks (0)
avatar
By B Adder
06th Dec 2012 08:01

What an eye-opener
Can't wait to advise my client's of the brilliant new tax-saving wheeze of giving up alcohol !
Why didn't I think of this before.............

Thanks (1)
06th Dec 2012 12:59

Gee whizz

The guys a genius - incorporation! Use of spouses allowances! Nobody ever thought of that before.

Thanks (0)
avatar
By B Adder
06th Dec 2012 13:41

and there's even more tax-savings

I emailed all my clients re going on the wagon to save tax and

badda bing badda bong

i get to save even more tax -

my profits hit the floor due to a drastic reduction in my client list !!

flaw in plan I will have more drinking time ....

hmmmmm 

Thanks (0)