GET IN SHAPE FOR THE NEW TAX YEAR AND BEYOND

When it comes to tax and financial planning, we’d all like to have more money in general and to pay less tax. Independent chartered accountancy firm, Broomfield & Alexander, recommends considering tax and financial planning as a year round exercise, a continuous process of reviewing and updating strategies. However, as the Budget and the 5 April 2003 year end approach (as well, perhaps, as the end of your business’ financial year), there are opportunities to consider and tax breaks and reliefs to be claimed or lost.

Andy Mallett, tax partner at Broomfield & Alexander recommends following a few guidelines when you prepare your tax planning strategy.

“The first thing you need to do before making any decisions is to consider your present position. This includes looking at your personal and business financial goals and how they interact. Essentially, what you’re doing is preparing a personal balance sheet. Once you’ve done that you should ensure that your planning is comprehensive and covers all immediate family and associated businesses and trusts.”

Mr Mallett also warns against making any hasty decisions just to save tax and advises making sure that any tax-saving decisions for your business are personally and commercially justified.

“Inheritance tax is a hot topic at the moment and there are many different ways that you can minimise this. However, if you intend to make substantial lifetime gifts, ensure you leave yourself and your partner with sufficient income and capital and, perhaps, medical or long term care insurance to cover you in later years.

“Beware of tax savings schemes that sound too good to be true,” concludes Mr Mallett, “As more likely than not, they often are. You could face financial risks and investigation by the Inland Revenue.”

For more advice about tax and financial strategies that could help you, your family and your business get into shape for the new tax year and beyond visit the Broomfield & Alexander tax centre at www.broomfield.co.uk – or contact them on 0800 052 1387.

Established in 1912, Broomfield & Alexander is one of the largest independent chartered accountancy firms in Wales with employees working from offices across South East Wales.