Any person’s financial objective should include tax planning. Tax planning begins when an individual starts to work and lasts almost the rest of one’s life, even after retirement.

Paying taxes is an important part of contributing to the nation’s growth, but when the government offers you the opportunity to save money on taxes, you should take advantage of it.

We’ve noticed that people often fail to look at tax planning critically and begin making tax-saving investments in a very technical manner.

Tax planning is an important aspect of our financial planning process, and careful planning will go a long way toward achieving our financial objectives. In this blog post, we’ll go through Five common mistakes to avoid when it comes to tax planning.

1. Paying taxes when not needed

A Personal Savings Allowance of £1,000 is available to all basic rate taxpayers. This ensures that the initial £1,000 of the interest from an individual’s joint savings interest is tax-free. The PSA for higher rate band taxpayers is £500 (nil for additional rate taxpayers).

Unlike in the past, building societies as well as banks will no longer deduct tax at the source (unless or until R85is signed). If an in dividual exceeds their PSA, he/she will be required to pay taxes to HMRC directly.

2. Not performing as a group

Married couples/civil partners can save money on taxes by gifting some kind of investments to their spouse whosoever pays the minimum or lower tax rate – but it must be a true gift, not just a symbolic gesture.

If you’re married or in a civil partnership and you were born on or before April 6, 1935, you might be eligible for Married Couple’s Allowance, which will help you save money on your taxes.

If you were both born after April 6, 1935, you canbe eligible for theallowance but it depends totally on your earned income.

3. Refusing to demand the Blind Person’s Allowance

If you are born blind or highly sight-impaired, or if you live in Scotland or Northern Ireland and your vision is too poor to do any job that requires eyesight, you can receive an additional £2,390 allowance.

After you’ve registered with the local authority as a blind person, call HMRC and inquire for Blind Person’s Allowance. It is not applied automatically.

4. Not paying attention to tax code

A tax code indicates your employer the amount of your tax-free pay; the rest is taxed. The tax authorities will notify you on a regular basis to clarify about the creation of code.

Check that you’ve been given the right kind of allowances, pensions or other type of incomes shown are accurate, and that everything you don’t understand has been clarified.

5. Not paying on time

As a taxpayer you need to complete tax-filing for the current year so, you must complete it by October 31st, or by January 31st if you complete it electronically. Each tax year, the tax should be payable by the 31st of January.

If an individual miss or exceeds the deadline, you’ll be hit with a £100 penalty right away, with higher fines coming in another three months.

Key advantages of tax planning

Tax planning techniques are often used to assist a company in achieving its financial and business objectives. Tax planning has advantages for both large and small companies, and it plays a significant role in:

• The smooth running of the financial planning process is facilitated by tax planning.

• Collection of taxes on time decreases legal wrangling.

• Tax planning allows taxable profits to be channelled into a variety of investment plans.

• Taking advantage of all available tax reliefs, grants and credits

• You will save money by managing your taxes.

• Corporate tax planning allows them to contribute to our country’s economic development.

• Helps to maintain economic stability

Winding up

Nowadays, taxes for companies, firms, and the self-employed individuals are a little more difficult because they can’t be deducted on a pay-as-you-earn basis like they are for employees. This is where a tax accountant’s services become extremely valuable.

A tax accountant who is professionally licenced and trained will assist you in organising your financial statements and calculating your tax bill so that you always pay the correct amount of tax.

Tax advisors will also assist you in developing and implementing a tax policy that will help you avoid paying excessive taxes in the future.

You shouldn’t underestimate the value of having a tax accountant on your side, whether you run a big organization or are a self-employed sole trader.

Sophia is a full-time financial writer at experlu. she is a passionate blogger and love to share her knowledge on various subject. Content created by Experlu– are loved, shared & can be found all over the internet on high authority platforms.

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We all know that saving money is an art, but saving money on tax is a bigger art. Well, we all are aware of different tax rules associated with our daily life. And who doesn’t want to save money on tax? We basically evaluate all our expenses and savings and try further to save money on tax. One of the most common and highly effective tools associated with tax saving is the investment in life insurance policy. Yes, in India, life insurance is eligible for tax deductions under Section 80C. But do you really think it is simple, there are many terms and conditions associated with the same.

Tax rules you must know

1. When it comes to the tax deduction, there is a certain limit associated with the same. For all those policies which were issued on or before March 31, 2012, the maximum premium amount that will be eligible for tax deductions will be around 20% of the total sum assured. Anything in excess to this will not be liable for any deduction under Section 80C.

2. The maximum premium that is eligible for deduction for the plans that are issued on or after April 1, 2012, will get 10% of the total sum assured as the tax deduction. For example, if you invest in an insurance plan and that too which carries the sum assured of Rs 10 lakhs. Keep in mind that the annual premium which will be eligible for tax deductions would be around 1 lakh cannot be claimed for tax benefits. However, if the person is suffering from an illness that is listed under Section 80DDB or has a disability listed under Section 80U, an additional deduction in premium of around 5% is permitted. Therefore, in such cases, the maximum premium which will be eligible for deduction under Section 80C will be 15%

3. Premium amount that is paid someone else like other than children, spouse and self will not be liable for deductions.

4. In case of maturity, if an individual is fine with all the above-stated criteria, the maturity benefits stand exempted from tax. But if in the case where the annual premium exceeds the percentage limit which is mentioned above, the tax will be levied in accordance with the income tax slab

5. In case of demise of the insured person, the death benefits are not taxable.

Moreover, the good thing is that the term insurance plan which is a strong form of life insurance is not much affected with the same. And, in today’s market, there is the multiple and wide range of such plans is available in the market. Such effective plans carry a sum assured which is much higher than the annual premium. So investing in the same is not a big deal and it always comes out with a wider range of benefits.

However, it is important for you to understand that the concept can be different with single premium policies. As a part of these policies the sum assured is not high just to improve the returns. Therefore the premium amount associated with the same fall low, creating not enough percentage difference between the sum assured and the premium.

Under such policies, the sum assured will not be more than 1.5 times the premium amount. As a result single premium plans will not be liable for the tax deduction.

It is true that a life insurance plan demands a long-term commitment that may last for a couple of years. It is obvious that between the tenure policy you don’t want to discover that you made a huge mistake as your premium will not be liable for tax deductions. Then it will become quite late. Even if you want to cancel the policy then you have to pay unexpected charges.

So it is important for you to pay attention to the tax laws, study the same properly before investing in any insurance plan. Term insurance plan comparison is a great choice if you are planning to invest in the term plan. It will provide the needful financial cover to your family in your absence and will be liable for tax deductions. For making an investment in a term insurance plan, you can take help of PolicyX.com which is a great platform and assisting customers in choosing the right plan for them.

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In uncertain economic times, having gold on hand is a surefire way to liquidize and protect your assets. Even in a stable economic environment, gold is a safe haven asset that will never fail you. This is because gold’s value increases instead of decreases in direct relation to the decline of value in paper investments, such as stocks and bonds.

To minimize or even eliminate a fall in portfolio value during economic collapse it’s best to invest in uncorrelated investments. What this means is that you want to own assets that will move the opposite way of other investments when economic times become uncertain. Gold is one of the few guaranteed investments that are uncorrelated to many other investments. This makes it a very safe investment that has proven to remain positive when stocks fall.

This means that allocating some of your investment to gold is a sensible and solid choice. However, the buying of gold bullion is not always as straightforward as one would hope. There are plenty of precious metal dealers who will gladly take your money without having your best interests as a customer at heart. To avoid falling for an unscrupulous dealer, you’ll have to do a little research into finding the best dealer so you can purchase gold with confidence.

Online vs. Local

In general, there are two main ways to buy gold: online or locally (in person).

Local precious metal dealers can be found in cities around the world. However, brick and mortar stores will often come with a lot of overhead. This is due to rent, paying employees, security, and more. This added overhead and the fact that local gold dealers often have lower sales volume means that they will often have to charge more for gold bullion to make up for their costs.

On the beneficial side, a local gold dealer will mean that you will be able to physically inspect the bullion and take immediate possession of it when you purchase it.

Local dealers also have more of a reason to care about their reputation in the immediate community they serve, which may translate into higher quality of service when dealing with them.

Also, if you’re only buying small quantities of gold and you’re paying for it with cash, your purchases at a local dealer might not be reported to the tax authority and can stay confidential. If this is something you are considering, make sure you discuss it with your dealer to make sure you stay below the threshold for reporting.

The other option for purchasing gold bullion is through an online dealer. Online dealers typically do more business and will have higher volumes of sale and much lower fixed costs. This means that you can often find good gold bullion at a solid discount online.

Online dealers will have a much more varied range of products in stock and many even offer convenient buy-and-store programs that permit you to purchase the gold bullion and then keep it in an insured and protected location made available by the dealer. This can be very beneficial since storing your own precious metals can be risky.

Some people are nervous buying bullion online, since it is such an expensive product. However, if you are able to find a dealer with a long, solid history and positive reviews, you will most likely be in good hands.

Unfortunately, buying gold online means that you will have to pay for shipping and handling costs (which are not cheap when it comes to materials of this value), and you will have to wait to physically take possession of your gold. Some online gold dealers like Lucius Precious Metals offer free local delivery for orders over a certain price point, which can be something to consider if you’re in the area.

What to consider when buying gold for delivery

If you are purchasing gold online and looking to have it delivered to you, you’ll want to consider a few things.

First, you want a dealer that has a strong and solid reputation and years of reliability. Read customer reviews and check out investment forums to make sure your chosen dealer doesn’t have any shady reports out on them.

You also want to make sure that the dealer sells only gold coins and cold bars from LBMA-approved wholesalers. This is your best guarantee that you will be purchasing authentic coins and bars.

You’ll also want to check out the dealer’s premiums on bullion. This can vary widely throughout the industry and is not a set-in-stone number. Lastly, check out the difference between buying and selling prices on the dealer’s site, which can be as high as 10% or more.

To maximize your long-term profits, you need to work to find a dealer who is reputable and trustworthy and offers low premiums.

What to consider when buying gold for storage

If you’re buying gold for storage, you still want to check out a dealer’s reputation, bid-ask spread, and other factors mentioned above, however there are other factors that come into play when buying gold for storage.

For one, you’ll want to examine the storage facilities where your precious metals will be kept.

Gold bullion should be stored with a reputable, separate entity so as to reduce counterparty risks. Ideally, you’re looking for an LBMA-approved vault provider like Brinks. These types of companies store gold reserves for massive financial institutions and government bodies. This assures that your gold is being stored in a secure environment.

When storing gold, make sure that your dealer offers insurance that will cover the full replacement value of your coins or bars in the event that something were to happen to them. Full replacement means that you will get back the physical equivalent of the gold lost, and not just the cash value—which is based on the spot price of the metal.

You’ll also want to make sure that your gold is fully allocated to you. This means that it is held in your name, you are the outright owner, and the gold can be made available for delivery or sale at any moment. Unallocated gold bullionis shared by investors who own an interest in the bars, which raises all kinds of liquidity issues that we recommend avoiding.

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If you have entrepreneurial determination then that’s a good starting place for a business. Of course, it’s only one component of many. You need to think about your own experience or expertise regarding the management of a business, how you’re going to fund such a venture, how many other people you might need to hire to help you with this company, and, most importantly, what type of business you’re going to start. Money is probably the biggest worry on your mind but if you focus on making sure all other components of your business are running smoothly then the profits will look after themselves. Here’s some more detailed advice for any first-time business owners out there.

Become a real boss.

You might have an innovative idea and qualifications in a certain line of business but that isn’t going to be enough to transform you into a successful business owner. When you’re the boss of a company, you need to be an all-rounder. For example, if you’re running a legal business then it isn’t enough to simply have a qualification in law. You need to know how to manage finances, marketing, and, most importantly of all, people. If you want your business to get off the ground then you need to learn how to manage your team and fill them with the same passion for the company that you feel. Making that step will transform you from somebody with a great idea into somebody with a great business.

Research the market.

It’s your job to drive the direction of the company. You might have a good business plan at the moment but the market is always changing. You need to update your approach in order to adapt to a changing industry. You need an enticing and widespread online presence in this digitally-driven era of business, as we’ll discuss in the next point, so you might want to look into online companies such as Youi Pty Limited, who deal specifically with buying and selling goods online, for a little insight into their credit ratings and financial situation.

It’s important that you take note from other companies, whether they’re in your industry or not, so as to not only get an idea of what they’ve been doing well but what they haven’t been doing well. The great thing about being the second or third business to dive into a certain industry is that you don’t have to make the same mistakes as the companies that took the plunge first. You can save yourself a lot of money and time by figuring out how to cut straight to “Successville”.

Get your online marketing campaign right.

As touched upon in the point above, you need a strong online marketing approach in order for your business to succeed. You might not be a marketing expert but you should certainly get marketing professionals to help you if that’s the case. The “build it and they will come” mentality doesn’t always work because there’s a lot of competition offering the same products and services as your business. You need to stand out from the crowd if you want consumers to come to you. Figure out how to optimize the content on your website and social media pages so as to climb the rankings on Google and other search engines. That’ll get you in front of your target market.

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From a financial perspective, running your own business is the biggest risk you can take, but can also reap the biggest rewards for you and your family. Running a business takes a huge amount of planning, time spent working, developing skills and completing orders. There will come a time within your budding business career that the jobs seem to mount up to a level which you cannot cope with alone. It is at this point which you may start to wonder whether hiring someone will benefit you and your business.

Think about yourself and how much you value your time. You are the owner and instigator of your own business, you are worth a lot of money, and this is money which should not be wasted by sitting in front of a computer checking emails, social media and handling tech support. These are all tasks which other people can do for you at a more reasonable price- so instead of costing yourself an hour of your own time, cost an hour of someone else’s.

It is hard to know exactly when the right time is to hire a new person you’re your team, but it really comes down to how much profit you earn and the time you take out of your day to complete tasks which prevent you from doing your work to its full extent.

The right person could save you time doing these small tasks and allow you to focus on new ways to expand and increase the profitability of your empire. You could end up deciding to expand overseas, open a store, or maybe invest in things such as foreign currency: http://trustedforexbroker.com. It will free up your time and in the end mean you can make much more money.

If you feel that you need someone there to help the business grow and prevent it from falling into debt, then you will have to make the financial sacrifice to start with in order to see those long-term results. It may seem as if you simply cannot afford to hire someone- but can you afford not to?

Hiring The Right Person

If you do decide that you need to hire an extra pair of hands, make sure you take that time to hire the right person for the job. Simply having the right employee can bring your profits up and the efficiency of your business up by a huge amount. Someone who has the knowledge, skills, enthusiasm and drive to succeed can transform the way your business operates. It may mean you have to offer them a larger sum to start off with, but that investment will pay off tenfold when you are able to work on more projects and expand. If you need tips of finding the right employee, here’s a helpful post: https://www.thebalance.com/top-tips-for-hiring-the-right-employee-1918964

And remember, if you can’t afford to hire an employee for full-time work- all you need to do is offer a part-time position instead. It will give someone the chance to work for you and balance their other commitments and you will have an extra helping hand.

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