Our 5-minute read – Tax Tips – for UK doctors and dentists will help you save tax, get organised with your tax affairs and make sure you meet important deadlines with ease.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.
Summer is drawing to a close and if you’ve been as busy as we have, you might be surprised to find that Q3 has snuck up on you. The start of a new quarter is the perfect time to review your finances and revise your financial strategy; the third quarter is an especially great time to look back on the first half of the tax year and make changes to finish the year strong.
Here are a few things you should be doing to ensure you’re saving the most tax possible this year.
Review and prepare
With the first six months of the tax year under your belt, you have sufficient data to review your business’ performance, but you also have ample time to implement any changes that might be necessary for improvements or to save tax. January tax payments are quickly approaching so ensure you’ve prepared your return and developed a plan to deal with anything you may owe.
Manage costs
Looking at your business expenditure, consider where you might be able to reduce outgoings so that you can have more money for you personally, to invest in your business, to invest elsewhere or to put into a savings scheme.
Seek out tax-relief
HMRC provides a variety of ways to save on tax, you just need to know how to take advantage of all the opportunities available. From Inheritance Tax and Capital Gains Tax allowances to Pension Lifetime and ISA allowances, you’ll find relief that works for your financial circumstances.
Maximise savings
Double check that you are fully utilising your tax-efficient savings avenues. The biggest opportunities that many leave unfulfilled are pensions and ISAs.
- Pensions – The lifetime allowance for most taxpayers is £1,055,000 for the 2019/20 tax year. You can spread this amount across all the pensions you have, including any private or workplace pensions, but excluding your State Pension.
- ISAs – For the 2019/20 tax year, the ISA allowance is £20,000 which can be split between the various ISA types. Check that you’re on track to use your full tax-free ISA allowance for the year and if you’re behind on your goal, some quick adjustments should help you get back on track.
Work with a professional
If you’re too busy to take on the review yourself or are simply in need of assistance, a financial adviser can help. They’ll be able to find any tax-saving schemes you might not be aware of, provide guidance on pension and ISA savings plans, and assist you with prepping your returns.
At Dental and Medical Financial Services, we’re committed to helping you to make full use of your tax allowances to reduce your tax bill, so don’t hesitate to schedule time with an adviser who can advise on all your financial planning needs.