The UK tax code, the laws that govern how much tax we pay, is one of the largest in the developed global economies. Unless you have a reasonable grasp of the multitude of tax rules and regulations, attempting to manage your own tax affairs is like driving with a blind-fold over your eyes.
HMRC are keen to befriend you, you are referred to as their “customer”. Whilst this is laudable, you will likely receive more flack from HMRC based on what is wrong with your tax affairs, rather than strategic options available to reduce your tax and NIC liabilities.
For example, there are reported to be two million couples who are eligible to transfer unused personal allowance (from one spouse not paying tax to the other who is paying tax). HMRC have enough data to automatically make this transfer on behalf of eligible couples, but you must make a claim, and many couples are unaware of this possibility.
HMRC seem to be a reactive organisation. They wait for you to make a mistake or send in a claim to reduce your taxes, before they will act.
Which is why professional advice makes sense. Advisors plug the information gap, they make sure you are kept up-to-date and any useful tax strategies are implemented in good time. It is, after all, what you don’t know that will trip you up.
If you are struggling to manage your own tax affairs we can help. Please call, we would be delighted to discuss your tax planning options. Take off the blindfold…