Every Friday we aim to post an answer to a FAQ about mortgages, tax, investments, money matters, business or retirement. You can have your say too. Send an email with your FAQ to [email protected]
This does not constitute advice and advice should be sought in all instances before acting on it.
Q. How can a financial advisor help me to save tax?
Answer: Every year millions of UK taxpayers are paying billions more in tax than they need.
A lot of people incorrectly believe that only an accountant can help you to save tax. However, a financial advisor can help you identify areas of wastage and also help with both short and long-term tax planning too.
The role of an accountant is different to that of a financial advisor even though their roles may seem to overlap. An accountant can help you improve your tax efficiency, create a business plan, assist with growth management and exit planning.
Areas that a financial advisor can help you with include:
- giving advice on savings, for instance, they can tell you if you are using your full ISA allowance
- providing guidance on retirement planning
- helping you plan for the future by advising on Inheritance Tax planning
- guiding you on Capital Gains Tax, for instance investing in stocks and shares through an ISA
Best advice
You will be in the best position if your financial advisor and accountant can work together.
In doing so, they can give you the best advice on growing your wealth, protecting your assets and can provide answers to complex questions.
Using specialists may also enhance your success in tax planning, as the advisors will have already helped people just like you to save tax.