High Earners Take Advantage of Tax Planning

Where ever you find high earning individuals or companies with high profit margins, you'll find adroit tax planning strategies.

Whether we like it or not, the wealthy can usually find completely legal opportunities for wealth protection.

A host of companies in the UK now provide robust tax planning strategies for individuals and companies which aim to mitigate levels of tax being paid.

Unsurprisingly, central to UK tax planning strategies is income tax mitigation. These strategies tend to be targeted at high earning individuals – in excess of £150,000 per annum – and focus on reducing their income tax liability. 

There are considerable benefits advertised by advisers, especially for the self-employed, who can mitigate, in some instances up to £80,000 they have paid in the previous three years. 

And, what's more, such strategies are completely above board, having been approved by the Upper Tier Tax Tribunal. There are a variety of other income tax mitigation strategies available from tax planning vendors, some, for example, focus on Government-incentivised tax reliefs for investment in worthwhile projects. 

Naturally, it is vital for any individual adopting any income tax mitigation strategies to only undertake actions in tandem with the law of the land, there is a world of difference between well deployed tax planning strategy and tax avoidance. This pertains also to relief from trading and investment profits for individuals and companies. 

Remuneration trusts have long proved an effective and legal tax planning strategy for protection of such profits. Here an incentives plan can be funded through a tax-free remuneration trust environment, with contributions fully deductible against income tax and corporation tax.

 Once funds are lodged in such trusts they can both grow tax free or be accessed tax free, and obviously have legacy potential, being passed to named beneficiaries on death tax-free also.

 There's rarely a week goes past without scare stories about pension funds, so it's unsurprising that another popular tax planning strategy revolves around pension release. As long as all the legal conditions of the releasing any funds are observed, individuals can then opt to try and maximise their funds elsewhere. 

Such strategies are a useful rejoinder that it's not only the very wealthy who can enjoy the benefits of legal tax planning strategies. In fact, there are numerous other examples, such as in the areas of stamp duty mitigation, which aims to provide relief on stamp duty when purchasing property in the UK. 

Regardless of the tax planning strategies chosen by individuals to protect their assets and wealth, always ensure that they are carried out with reputable companies who can provide demonstrative proof that such strategies work within the remit of current legislation.