Income Tax Planning and Advice: Trusted Accountants
Paying more tax than necessary isn’t just frustrating—it’s avoidable with the right strategy. Whether you’re a business owner, contractor, landlord, or high-income professional, structured tax planning ensures you retain more earnings while staying compliant with HMRC regulations.
At pearl lemon accountants we take a tactical approach to tax planning, assessing income structures, deductions, and allowances that align with UK tax laws. With legislative changes frequently affecting liabilities, staying ahead isn’t just beneficial—it’s essential.
Our Expert Income Tax Planning and Advice Services
Our approach to tax planning goes beyond basic compliance. We focus on structuring income, reducing tax burdens, and ensuring businesses and individuals retain more of their earnings while meeting HMRC requirements. Each service is designed with a practical approach to income tax efficiency, incorporating industry-specific strategies, allowable deductions, and tax relief schemes.
Self-Assessment Tax Planning
- Self-employed professionals
- Sole traders and freelancers
- High-income earners (£50,000+)
- Landlords and property investors
- Individuals with additional income streams
- Income Structuring: We analyze your earnings to determine the most tax-efficient method of receiving income (salary, dividends, or pension contributions).
- Expense Optimisation: We ensure that all allowable expenses—such as home office costs, travel, and professional subscriptions—are claimed correctly.
- Tax Code Review: Incorrect tax codes often result in overpayments. We assess your tax code to ensure it reflects your financial situation.
- Capital Gains Tax (CGT) Mitigation: If you’re selling property, stocks, or other assets, we use strategies such as bed and breakfasting and CGT allowances to minimize tax liabilities.
- Filing and Compliance: We prepare and submit your self-assessment tax return accurately and on time, avoiding penalties.
Corporation Tax Planning
- Limited company owners
- SMEs and large corporations
- Startups looking for tax-efficient structuring
- Corporate Income Structuring: We balance salary, dividends, and reinvestment to ensure your corporation tax liability is minimized.
- R&D Tax Relief Claims: If your company invests in innovation, we help you claim up to 86% in additional deductions on qualifying research and development expenditure.
- Tax-Efficient Profit Extraction: We advise on strategies such as director loans, pension contributions, and bonus deferrals to reduce corporation tax liabilities.
- VAT Strategy: We assess whether the flat-rate VAT scheme, standard VAT, or cash accounting VAT scheme is best suited to your business operations.
- Loss Utilisation: If your company has experienced a loss, we ensure you maximize available reliefs, such as carry-back and carry-forward loss relief to offset future profits.
Tax Planning for High-Income Earners
- Individuals earning over £100,000
- Business owners and directors
- Investors with diverse income sources
- Personal Allowance Protection: Earnings above £100,000 result in a loss of the tax-free personal allowance. We use tax-efficient investments and salary adjustments to avoid this.
- Pension Contribution Tax Relief: Contributions up to £60,000 per year (or 100% of earnings) benefit from up to 45% tax relief.
- Investment Portfolio Tax Efficiency: We structure your investments across ISAs, SIPPs, and EIS to minimize capital gains and income tax.
- Dividend Tax Planning: With the 2024/25 dividend allowance reduced to £500, we implement corporate investment strategies and income splitting to reduce tax exposure.
- Inheritance Tax (IHT) Mitigation: High-net-worth individuals often face 40% IHT charges. We use gift allowances, trust planning, and Business Relief to lower taxable estates.
Tax Advice for Landlords and Property Investors
- Buy-to-let landlords
- Holiday let owners
- Property investors with multiple holdings
- Stamp Duty Land Tax (SDLT) Planning: We advise on Multiple Dwellings Relief (MDR) and other SDLT exemptions to reduce acquisition costs.
- Furnished Holiday Let (FHL) Tax Benefits: FHL properties qualify for full mortgage interest relief and CGT relief—we ensure your property meets these criteria.
- Mortgage Interest Deduction: Since the mortgage interest relief restriction, landlords can only claim a 20% tax credit—we implement strategies like incorporation into a limited company to maximize tax efficiency.
- Capital Gains Tax Reduction: Selling a rental property? We use lettings relief, principal private residence relief, and asset disposal timing to lower CGT.
- Limited Company vs. Personal Ownership: Retaining properties in a limited company structure can result in lower tax rates—our analysis ensures you choose the best option.
VAT Planning and Advice
- Businesses with turnover exceeding £85,000
- Sole traders and SMEs nearing VAT registration thresholds
- E-commerce businesses and international sellers
- VAT Scheme Selection: Choosing the right scheme—Flat Rate, Standard VAT, or Cash Accounting VAT—can save businesses thousands annually.
- Voluntary VAT Registration: For businesses below the £85,000 threshold, registering for VAT can increase reclaimable expenses and improve cash flow.
- International VAT Compliance: Selling across borders? We ensure compliance with EU VAT OSS (One Stop Shop) rules and UK import VAT.
- VAT Reclaim Strategies: We assess your input VAT claims to ensure every allowable deduction is maximised.
Inheritance Tax (IHT) and Estate Planning
- Individuals with estates worth over £325,000
- High-net-worth individuals
- Business owners passing assets to family
- Nil-Rate Band Utilisation: The first £325,000 of your estate is tax-free. We structure assets to make full use of available allowances.
- Gift Exemptions and Trusts: We implement lifetime gifting, trust structures, and Business Relief to reduce inheritance tax liabilities.
- Property IHT Planning: Passing property to heirs? We ensure you benefit from the residence nil-rate band (£175,000) while avoiding CGT traps.
- Business Succession Planning: For business owners, Business Property Relief (BPR) allows up to 100% IHT exemption on qualifying assets.
Payroll and Employment Tax Planning
- Businesses with employees
- Limited companies managing payroll
- Companies exceeding the £3 million Apprenticeship Levy threshold
- National Insurance (NI) Reduction: Structuring salaries to fall within the £12,570 NI threshold reduces employer liabilities.
- Employment Allowance: Businesses can claim £5,000 off their employer NI contributions if eligible.
- Director’s Payroll Optimisation: Splitting income between salary, dividends, and benefits reduces overall taxation.
- Apprenticeship Levy Reclaim: If your business contributes to the 0.5% Apprenticeship Levy, we ensure unused funds are reclaimed.
Take Control of Your Tax Strategy
Every financial decision impacts tax liabilities. With proactive planning, individuals and businesses can legally minimise tax burdens, increase cash flow, and reinvest savings into growth. Waiting for the tax deadline often means missed opportunities—strategic tax planning starts today.
Frequently Asked Questions
A combination of salary, dividends, and pension contributions ensures minimal tax liability.
No, only VAT-registered businesses can reclaim VAT on expenses
Incorporation into a limited company and claiming all allowable deductions can reduce liabilities
HMRC issues immediate penalties, increasing with delays. We handle timely submissions to avoid fines.
Utilising the nil-rate band, making lifetime gifts, and structuring assets through trusts help reduce IHT
