The best time is before the tax year ends on 5 April, while there's still room to use allowances, top up pensions and make EIS/SEIS investments. The second best time is now — a mid-year review can still catch issues like director's loan accounts, dividend timing and capital gains crystallisation.
What's the best salary/dividend mix for a Surrey limited company director?
Most owner-managed companies pay a salary up to the National Insurance secondary threshold (currently £9,100) plus dividends within the basic rate band. The exact figure depends on personal allowance, other income, pension contributions and company profits — a proper review usually finds savings of £1,000–£5,000 a year.
How can I reduce inheritance tax on my estate?
Common reliefs include the £325,000 nil-rate band, the £175,000 residence nil-rate band, the spouse exemption, the seven-year gifting rule, business and agricultural property relief, and using trusts. Whole-life insurance written into trust is often used to cover the residual IHT bill.
Is tax planning the same as tax avoidance?
No. Tax planning uses legitimate reliefs and allowances Parliament intended you to use — pensions, ISAs, EIS, marriage allowance, business asset disposal relief and so on. Tax avoidance uses artificial arrangements that fall foul of HMRC's general anti-abuse rule. Reputable Surrey accountants will not touch the latter.
Will my tax planning still work if HMRC changes the rules?
Most reliefs change at every Budget and Autumn Statement. Good planning is reviewed at least annually so allowances are crystallised before they shrink. Recent examples include the reductions to the capital gains tax annual exemption and dividend allowance, both of which forced many people to rethink their approach.