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.
January marks the beginning of the end – of the 2018/19 tax year, that is. The fourth quarter of the tax year means that you have one last chance to refine your financial plans and ensure you’ve not missed out on any tax relief options available.
Here are a few ways for you to be certain you’re prepared for the fast-approaching resolution of the tax year.
Look back at previous quarters
With three quarters under your belt, you should be able to accurately gauge your business’ performance. Have you been hitting your numbers? Is there anything you need to revise or improve in order to improve profits? A thorough review in Q4 will prove extremely helpful when it comes time to plan for the 2019/20 tax year.
Prepare for your tax bill
The first half of your payment on account is due at the end of this month – by midnight on 31 January. This bill is calculated based on your tax bill from the year prior and the second half of what you owe is due 31 July so don’t forget to account for both instalments of the payment.
If you haven’t completed your 2017/18 tax return yet, take a look at the five most common tax questions HMRC is asked for a bit of extra help.
Use your tax relief allowances
HMRC offers plenty of opportunities to save tax. From Inheritance and Capital Gains Tax allowances to Pension Lifetime and ISA allowances, there’s no shortage of ways to save. A financial advisor will be able to pinpoint any schemes you aren’t fully taking advantage as there are a wealth of options available.
Beef up your savings
Double check the totals in your pension and ISA accounts. Each come with their own allowances so do your best to maximise your savings before time runs out to fully utilise them. It may take some work to meet your saving goals, but planning and dedication will help you achieve them.
Don’t go it alone
Even though the task may be daunting, it is vital to manage your finances and plan ahead. To ensure you leave no stone unturned, the best course of action is to work with a professional.
Financial specialists understand that reducing your tax bill is one of the most important things a practice owner can do which is why we’re happy to work with you to provide suggestions on how you can save the most tax and assist with all your financial planning needs. Contact us to start your financial review.