I Need Assistance With Tax Planning, Could an Accountant Help?

How Can An Accountant Help With Tax Planning?

Tax time can be stressful and overwhelming, particularly if you are unfamiliar with the tax regulations and accounting methods.

Hiring an accountant to help you with your tax planning and filing is an excellent way to ensure your taxes are completed accurately and in a timely manner. A tax planning accountant employs various strategies to help minimize your tax liability and ensure you are taking advantage of all legal deductions and credits that you may qualify for.

Tax specialists and tax planning accountants can also help with your personal financial planning, whether that means generating and filing your self-assessment tax returns or offering tax planning advise for your business or you as an individual.

Professional tax planning services offer professional advice and assistance with all aspects of tax planning. This can prove invaluable for those who have never filed a tax return before or who have established a new business recently and haven't considered their tax planning yet.

Their comprehensive understanding of the UK tax system and the various demands HMRC makes of businesses and individuals regarding their tax bills, makes professional tax planners a valuable addition to anyone's life. Failing to adhere to the deadlines HMRC impose on tax returns could result in a serious fine.

Read on to learn more about how an accountant can help your business.

What is a Tax Planning Accountant?

A tax planning accountant is a qualified professional who helps individuals, businesses, and other organizations plan and prepare their taxes in order to reduce their overall tax liability.

By assessing the financial information in your accounts, UK tax specialists can offer bespoke advice that suits your and your business' needs. This personally-tailored approach means that the advice you receive won't simply be on account of the numbers you provide your tax planning accountant but on your business needs overall.

The tax planning accountant will assess your financial situation and advise you of the best options to minimize your tax liability, such as taking advantage of applicable deductions, credits and other available incentives. The specific tax planning your accountant recommends will consider your short and long-term business goals, helping you achieve them more sustainably.

Additionally, a tax planning accountant can provide sound advice on financial matters and help you develop strategies to better manage your finances in the future. Every business owner wants their business to grow and succeed, and when it comes to your finances, relying on the advice of a professional tax planner is the best way to achieve this.

Most tax planning services employ Chartered Tax Advisors and Chartered Accountants who have a thorough understanding of UK tax law. This puts them in the best position to offer actionable advice that is tailored to your financial needs.

In most cases, analysis of your business or personal finances will reveal where tax savings can be made. With only a simple step such as this, you can dramatically improve the profitability of your business. You can easily see why tax planning accountants are so valuable for businesses that are either just starting out or those who are looking to increase their profits.

Often, the advice these tax planning specialists offer will extend beyond the finances of your business. This is part of the comprehensive nature of tax planning and how it can affect almost any aspect of your business.

How do Accountants Help With Tax?

Accountants provide much needed assistance to taxpayers throughout the year with comprehensive tax preparation services and planning.

A qualified accountant can enter your financial data into the relevant tax software to generate your tax return, review it for accuracy and make sure that it is filed with the proper authorities, namely HMRC.

Tax planning accountants can perform these duties for businesses as a whole or for individuals alone. Depending on your role within your business and your personal financial requirements, they may even provide tax planning services for both you and your company.

If you have relatively straightforward finances, you may consider completing and filing your tax return yourself. However, for most business owners, this takes up valuable time they would otherwise spend on helping their business improve and become more profitable. It is this freeing up of your time that is the main benefit of hiring a professional accountant to help with your tax.

Compiling financial information and filing tax returns isn't generally possible for everyone. Whether because you are unfamiliar with the process or you have more pressing duties to attend to, hiring a professional tax accountant is the best way to make paying your tax bill easier.

An accountant can also help provide resources and advice on managing your finances for long term success and tax savings.

What are the Three Types of Tax Planning?

The three main types of tax planning are short and long-range tax planning, permissive tax planning and purposive tax planning.

Short and long-range tax planning typically involves making a plan for minimizing taxes for the upcoming year and setting goals for the long-term. Ultimately, short-range tax planning involves immediate changes you can make that will have a beneficial effect on your business finances. Alternatively, long-range tax planning involves putting tax arrangements in place to reap the benefits in the future. Long-range arrangements are typically implemented at the beginning of the tax year.

Permissive tax planning focuses on taking advantage of any legal deductions or tax incentives that may be available under UK tax law.

Purposive tax planning takes a holistic approach to financial planning by considering investments, estate planning, retirement plans, and other strategies that can help reduce your tax burden over the long term. These are essentially tax arrangements you can make with a specific financial purpose in mind, hence the name. For example, depending on your residential status in the country in which you pay tax, you may wish to diversify your assets to gain a more favourable tax bill.

All three types of tax planning aim to reduce your tax liability, helping you to make sounder investments and ensure the profitability of your company and assets.

Is it worth getting an Accountant for Self Assessment?

For individuals receiving income from self-employment or as a business owner, it is important to receive professional advice when filing taxes.

While it is possible to complete a self-assessment tax return without professional assistance, hiring an accountant can offer numerous benefits. If your tax self-assessment is fairly straightforward, you may consider filing it yourself to save money on accountant fees. However, a professional tax accountant can often find you more savings than their fee would cost, meaning you can hold on to more of your money at the end of the tax year.

An accountant can assist with calculating tax liabilities, setting up and managing payroll, providing advice on managing finances, and helping to develop tax-saving strategies.

Additionally, an accountant can offer guidance on complex regulations, deductions and credits, so you are compliant with all government regulations. This is incredibly important, as it ensures you avoid any expensive fines for submitting false information or missing HMRC tax deadlines.

Whether you are an individual or a business owner, hiring a qualified accountant to help with tax planning and preparation is the best way to ensure that you are taking full advantage of all tax deductions and credits available.

An accountant can provide sound advice and help you plan for long-term financial success. This will free you to spend more time focussing on your company and how you can generate more business. This is the best way to improve the profitability of your company. With your tax accountant focussing on how to make your business more tax-efficient, you are free to spend your time on what matters most - running your business.

Not only can a qualified tax specialist help with long-term goals and filing accurate and timely tax returns, but they can act as a fresh pair of eyes for your company. They can see savings where others might not, especially if you have been in the business from the start and are used to things being a certain way.