Tax Planning

Tax Planning

All taxpayers are allowed to arrange their affairs in a manner that remains legal but which minimises their taxation liabilities.  

The trading profit of a business is often not the same figure as your taxable income.  The latter is effected by tax laws which change the timing of when income is recognised and when deductions are allowed.  On occasions some expenses are permanently disallowed or alternatively some income is exempted from tax.  These tax laws can work in your favour with some careful tax planning.

Taxable income in a tax year is usually the net of assessable income less allowable deductions for the year.  If you can defer some of the income to a later year, or accelerate planned expenditure so that it is claimed in this tax year, then you will succeed in reducing your current year’s tax.