Personal tax planning

Controlling your tax

It’s easy not to question the amount of tax we’re told to pay by HMRC, especially if it isn’t your specific area of expertise.

Taxes are unavoidable, but they don’t necessarily have to be a big concern, especially if you have the team at PMK there to offer advice.

Every year, you’re given a set amount of earnings by HMRC, untouched by income tax. Once you pass the threshold of £12,570, you’ll automatically be taxed on any earnings.

But, if you’re a company director, for example, you’re able to look into the possibility of paying yourself with a mix of salary and dividends, reducing your income tax liability.

It’s not only salaries you could potentially save money on. You also receive a capital gains allowance every year, so if you sell higher-value assets or property, you’ll be able to keep some of the profit tax-free.

You will also be able to use tax credits throughout your lifetime. The Government will give you tax credits whenever you pay into a pension as an incentive to save.

Your taxes don’t have to greatly impact your life, so get in touch with the team at PMK to find out how you can become more tax-efficient.