Targeting the tax dodgers
The new High Net Worth Unit at HMRC has brought in £500m of additional tax payments since it was launched three years ago.
This unit deals with the tax affairs of the wealthiest people in the UK, targeting around 5,000 individuals with assets in excess of £20m.
The £500m it has raised exceeds its original target of around £100m a year, demonstrating the scale of the underpaid tax problem in the UK.
Most of us will probably never be sufficiently wealthy to receive a call from the HMRC High Net Worth Unit.
Despite this, collecting the correct amount of tax is clearly an important focus for the taxman at the moment, as pressure on the UK economy forces them to maximise the revenues they bring in.
Submitting an accurate and timely tax return is one of the most important aspects of Financial Planning for most investors. This ensures that you avoid penalties, interest on unpaid tax and costly investigations into your tax affairs.
Providing an accurate tax return is made much easier by keeping good records.
Each investment provider will issue statements at different times of the year, so you should keep these filed in a safe place until the time comes to provide the information to your accountant.
Structuring your investments and other financial arrangements to minimise the tax you pay is often an objective contained within the Financial Plans we create for our clients.
It is amazing how much tax you can legitimately save by simply understanding where tax is charged and which allowances, exemptions and other planning strategies can be used.
Are you paying the right amount of tax on your investment portfolio? Speak to us today to find out how a LifeWealth Design Financial Plan can help you to understand the tax you pay and develop strategies for paying less tax.
Photo credit: Flickr/Andy Hutchinson