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How to apply the triple bottom line framework in a small business
Inheritance Tax Planning is vital if you are looking to reduce the tax bill on your estate to help maximise the inheritance your loved ones will receive
Inheritance Tax (IHT) is the tax paid on the value of a deceased person’s estate. You might be thinking that if it’s an inevitability, what is the point in planning for it?
Some people take the view that their money is theirs to spend and the next generation must make their own way in the world. Others are very concerned that the tax paid on their death should be minimised. Inheritance Tax (IHT) planning therefore speaks to those individuals.
Not everyone is comfortable with talking about death. It is our reluctance to face the inevitable that is the biggest cause of problems. There are reliefs that can reduce inheritance tax significantly, but they invariably need a structure to be in place for at least two years before the relief can apply and this period can extend much longer in particular circumstances. Therefore, waiting until we are frail or in poor health before we finally tackle the issue often means it is simply too late to make much of a difference. Planning should start now!
Inheritance tax planning involves a review of the individual’s current exposure to IHT. Fundamental to this is an understanding of the current value of all the assets, any gifts made by the individual in the last seven years and the individual’s residence and domicile status.
They may have formed a view about where they would like certain assets to end up, and whether or not they have a will in place evidencing decisions already made needs to be understood.
Once the current IHT bill has been established, it is possible to consider ways to mitigate this.
A review will also identify other taxes which may be triggered, and any reliefs which may be available to mitigate those such as gift relief for capital gains tax purposes.
You may wish to use a trust as a structure to protect assets and pass them to the next generation. We can advise on the tax consequences of trusts although we cannot draft trust documentation and will need to work alongside your solicitor in relation to this step once the planning exercise is more advanced.
If you would like to meet with us to discuss your Inheritance Tax planning requirements then please call 0800 0523 555 or use our simple online enquiry form to book a free initial consultation.
Directors can receive bonuses and these are often annual and tied to performance. Like a salary, bonuses are subject to income tax and National Insurance Contributions where applicable.
An employers' NIC bill must be paid each month or quarter depending on how you run your payroll. It is paid along with any PAYE tax due to HMRC. You can pay your employers NIC liability online, or you can make a bank transfer or pay by cheque. You must allow time for your payment to clear by the deadline of 22nd of the month.
If you are a director of a limited company, you can receive a salary, bonus and receive benefits. If you are also a shareholder you can be paid a dividends from post-tax profits. For more information on how to pay yourself from a company, including the balance of salary and dividend income and what will affect your decision in our guide to directors’ pay.
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When should you switch accountants?
Arrange a free consultation in person or via video with your local accountant. It’s an informal chat to get to know you and find out more about the help
We clearly explain the support available to you and are happy to act as business advisors in order to help you grow your business.
Our fees are fixed and tailored specifically to each individual's needs, so that you only pay for the level of support and services that you require.
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
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Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.