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Do I need tax advice and where can I find the right support?

When it comes to your financial future, understanding how taxes impact your income, investments and retirement is crucial. Then there is inheritance tax, how will your children pay for the tax charged on your estate when you are no longer here? Navigating the complexities of tax planning can be overwhelming, but a tax adviser can help align your financial goals whilst ensuring you pay only for the tax you owe and no more.

How to pay less tax

Who needs a tax adviser?

Investors: Tax-efficient strategies help reduce the tax burden on gains and dividends, improving long-term returns.

Families planning their legacy: Inheritance tax (IHT) can diminish the wealth you pass on. Early planning can help protect your estate.

Retirees and pre-retirees: Structuring retirement income tax-efficiently creates security.

Business owners: Integrating personal and business finances tax-efficiently helps maximise wealth and plan for the future.

High earners: Strategic use of allowances can significantly reduce tax liabilities.

Tax has a big impact on most people and if you are wanting to ensure that you only pay what you legally have to then you need tax advice. In this article, we’ll explore what tax advise is, who advises on tax and the difference between accountants and financial planners and finally what to watch out for when seeking tax advice.

Tax Advice Near Me

Accountant vs financial planner: Who should you turn to?

When it comes to finding UK tax advice you can choose an accountant, a financial planner or both. Here is a difference between their roles and the support they can offer you:

  • Accountants focus on compliance, ensuring tax returns are accurate and on time. They provide essential but often transactional services.
  • Financial planners provide strategic, long-term advice. They integrate tax efficiency into broader financial goals, such as investing, legacy planning, and retirement.

If you already have an accountant, by working with a financial planner too, you gain access to tailored financial strategies that optimise taxes and contribute to long-term wealth. If you need an accountant Unividual have highly experienced partners that we recommend to clients.

What to watch out for when seeking tax advice

If you’re considering tax advice, keep the following in mind:

Short-term focus: Avoid advisers offering quick fixes or one-size-fits-all solutions without understanding your unique financial goals.

Lack of qualifications: Ensure your adviser holds recognised Chartered Financial Planning credentials and specialises in long-term financial planning. Ensure they are also registered with the Financial Conduct Authority.

Limited scope: Tax efficiency isn’t just about saving money, it’s about aligning with investment and legacy objectives. Ensure your adviser has the experience to manage your finances at every stage of your life.

Aggressive schemes: Be wary of tax avoidance strategies that could invite scrutiny from HMRC.

Find a business near you on the Money Helper Service that emphasises holistic, transparent and personalised tax advice. Or alternatively you are welcome to get in touch with one of Unividual’s Chartered Financial Planners.

How financial planners help with taxes

Tax Advisers that are Chartered Financial Planners can advise you around tax on every area of your finances, helping to legally reduce liabilities and protect wealth.

INCOME TAX

How we help: Structure your income using allowances, tax-free accounts and efficient withdrawal strategies.
Benefit: Minimise annual tax while maintaining financial flexibility.

CAPITAL GAINS TAX

How we help: Advise on when and how to realise gains, utilise exemptions, and plan asset transfers.
Benefit: Maximise post-tax returns on property, shares and other assets.

INHERITANCE TAX

How we help: Leverage insurance products, gifting strategies, trusts and other tools to reduce or eliminate IHT.
Benefit: Protect your estate for future generations, so that they don’t have to sell the assets you pass on to pay their tax bill.

RETIREMENT TAXATION

How we help: Maximise contributions, optimise withdrawals and avoid breaches of the Lifetime or Annual Allowance.
Benefit: Extend the longevity of your retirement funds.

DIVIDEND AND SAVINGS TAX

How we help: Optimise portfolios for tax efficiency, using allowances to balance growth and income.
Benefit: Increase after-tax returns on your investments.

Personal Financial Planning Zone

How business owners can benefit from tax-efficient financial planning

Running a business involves juggling multiple responsibilities and tax planning is often overlooked amidst day-to-day operations.

BUSINESS STRUCTURE OPTIMISATION

How we help: Advice on whether operating as a sole trader, partnership, or limited company offers the most tax-efficient setup.
Benefit: Reduce personal and corporate tax liabilities while maintaining compliance.

MAXIMISING TAX RELIEFS & ALLOWANCES

How we help: Identify opportunities to claim reliefs e.g. R&D, capital allowances.
Benefit: Reduce taxable profits and reinvest savings back into the business.

PLANNING INCOME EFFICIENTLY

How we help: Balance salary, dividends, pension contributions to minimise your tax bill.
Benefit: Retain more of your business income while building personal wealth.

PROTECTING BUSINESS LEGACY

How we help: Structure business succession to minimise inheritance or capital gains tax.
Benefit: Ensure your business’s value transitions smoothly to the next generation.

INTEGRATING BUSINESS & PERSONAL

How we help: Align your business’s strategy with your personal goals.
Benefit: Create a unified financial plan that maximises personal & business outcomes.

To find out more about financial planning within your business head over to our specialist section on our website.

Business Financial Planning Zone

Common mistakes when you don't take tax advice

Tax planning isn’t just for wealthy people or businesses. Working with a Tax Adviser is essential for anyone wanting to make the most of their money. Unfortunately, without professional advice, it’s easy to fall into these common traps:

  • Missing allowances: Many people overlook key tax allowances like the Personal Savings Allowance, the Capital Gains Tax exemption, or pension tax relief. Missing these could cost you hundreds or even thousands of pounds each year.
  • Overpaying tax: Without understanding the nuances of the tax system, you might pay more than necessary. For example, not optimising income from multiple sources (like a salary, rental property, or dividends) can push you into higher tax brackets unnecessarily.
  • Incurring fines: Mistakes or delays in tax submissions can result in penalties from HMRC. Even small oversights, such as forgetting to declare interest on savings, can create headaches down the line.
  • Failing to plan ahead: Leaving tax planning until the last minute limits your options. For example, not using your ISA allowance by the tax year-end means you lose out on that year’s potential tax-free growth permanently. Not utilising these services means that you may pay tax on the income you receive from savings.
  • Mismanaging inheritance tax (IHT): Without advice, families often find themselves caught out by the 40% IHT rate, reducing the wealth passed on to the next generation.

Working with a financial planner offers a range of advantages, ofcourse many of them are financial.  Tax-efficient investing ensures more of your returns remain reinvested. Well-planned withdrawals and tax-free accounts stretch your retirement savings further and staying ahead of tax changes and using strategic planning reduces liabilities. However, our clients always tell us that these benefits mean we have done our job well and the real benefits of working with Unividual is peace of mind because you avoid the stress of navigating tax complexities alone. Additionally, we are all so time poor in this day and age and delegating tax planning frees up your time for other priorities. Our expertise ensures every aspect of your finances whether it is investments, retirement, legacy planning, business planning risk mitigation, works together seamlessly.

Andy's 3 tax-saving tips you can act on today

Andy is one of Unividual’s Tax Advisers in Edinburgh: “Good tax planning doesn’t always require a complete overhaul of your finances. Sometimes, small and simple actions can make a big difference. Here are three quick tips you can start with:”

The silly simple one: Maximise your ISA allowance
ISAs (Individual Savings Accounts) are a powerful tool for tax-free growth. Each tax year, you can invest up to £20,000 into an ISA. Any growth or income within the ISA is completely tax-free—meaning no income tax on dividends or capital gains tax on growth. You can also utilise ISAs and pensions for children and grandchildren.
Tip: Make sure to use your allowance before the tax year ends on 5 April. Unused allowances don’t roll over!

Get a buzz with Gifting: Reducing inheritance tax (IHT)
You can gift up to £3,000 per year without it being subject to inheritance tax. If you haven’t used last year’s allowance, you can carry it forward, gifting £6,000 in total. Gifting isn’t just about reducing tax, it can also help loved ones when they need it most.
Tip: Smaller gifts of £250 per recipient are also exempt, so use these for birthdays or special occasions.

The one that no one thinks of: Consider pension contributions to reduce taxable income
Contributions to a personal pension not only boost your retirement savings but also provide significant tax relief. For example, basic-rate taxpayers receive 20% tax relief on contributions, while higher-rate taxpayers can reclaim an additional 20% through their self-assessment. If for example you are reaching the tax threshold of £100,000 for childcare benefits you could reduce this through pension contributions and not loose the benefit.
Tip: If you’re close to moving into a higher tax band, increasing your pension contributions can reduce your taxable income and keep you in a lower bracket.

What is the next step for you?

Take control of your financial future with expert tax advice tailored to your goals. At Unividual, we specialise in tax-efficient financial planning that helps you maximise your investments, protect your legacy, and plan for a secure retirement. Contact us today to book your consultation and discover how a personalised strategy can make your money work harder for you.

Or you can head over to our tax planning hub for a wealth of additional resources.

Author: Cherie-Anne Baxter-Blyth

Date Written: 22nd November 2024

Updated: 22nd November 2024

Approver: Quilter Financial Limited TBC

Risk Warnings

The figures in this article are correct on the day the article was published or updated.

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